KASHMIR SINGH Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The facts of this case are these. Kashmir Singh, the complainant purchased a tractor in the year 1994 by raising loan from Punjab National Bank. The tractor was hypothecated with the Bank to secure repayment of the loan amount and was insured by the Bank w.e.f. 24.7.1995 to 24.7.1999 regularly. It was assumed that the vehicle was again insured w.e.f. 29.1.2000 to 28.1.2001. The tractor met with an accident on 28.1.2000 while being driven by one Ram Pal, causing death of Shri Sumer Chand and injuries to Shri Jagir Singh. The MACT held the complainant as well as driver Ram Pal of the tractor liable to pay compensation to the complainant as the tractor in question was not insured at the time of accident.

(2.) The District Forum came to the conclusion that the Bank was bound to get the vehicle in question insured as the premium was being received by debiting the same in the account of the complainant. The District Forum also held that the Punjab National Bank should pay a sum of Rs.2,78,000/- as awarded by the MACT, Jagadhri vide order dated 7.10.2003 to the complainant as per terms of the award of MACT with interest @9% per annum from the date of institution of the Motor Accident Claims Tribunal petition till realization and to pay a sum of Rs.50,000/- as compensation for deficiency in service and harassment. However, the State Commission placed reliance on clause (10) of the insurance policy which runs as follows:

(3.) We have heard the learned counsel for the parties.