- (1.) A question of some importance has arisen in this case, i.e. whether an insurance policy covering a motor vehicle would continue to fasten liability under that policy even if the policy- holder has transferred the vehicle during the terms of the policy.
(2.) It is not in dispute that a truck bearing registration no. URU 4605 crushed one Ved Prakash Sharma at about 7 P.M. on 6.1.1990 in village Dhamaura district Rampur. Ved Prakash Sharma lost his life instantaneously, but the truck driver tried to run away. Some police personnel and also relatives of Ved Prasad Sharma (deceased) chased the truck, stopped it at some distance and arrested the driver whereafter first information report was lodged and the driver was also taken into custody. The said truck was insured with New India Assurance Company. After due interval a claim petition was filed by Smt. Sita Sharma, widow of the deceased, Smt. Javitra, mother of the deceased, Santosh Kumar Sharma and Anil Kumar Sharma, minor and major sons of the deceased respectively. The Insurance Company took up the plea that original owner of the aforesaid vehicle no. URU 4605 had transferred the said vehicle in the name of another person, namely, Jameel Ahmad and, therefore, no liability could be fastened on the Insurance Company. Other pleas were also raised.
(3.) After discussing the entire evidence on record the Tribunal concerned allowed the said claim in part and directed that: (i) A sum of Rs. 1,44,000/- was payable as lump sum compensation with interest with effect from the date of application at the rate of 12% per annum; (ii) From out of the said compensation amount of Rs. 59,000/- shall be paid to the widow of the deceased, Rs. 25,000/- shall be paid to the minor son and Rs. 25,000/- will be paid to each major son and the mother of the deceased. The further rider was that the amount allocated for Santosh Kumar, minor son, shall be kept in a nationalised bank in the shape of F.D.R. till he attains the majority.;