- (1.) THE appellant New India Assurance Co. Ltd. challenged the award dated 3-10-1991 passed by the Additional Motor accident Claims Tribunal, Nagpur in Claim Petition No. 22 of 1989 awarding compensation of Rs. 3,00,000/- to the respondent Nos. l and 2 making the appellant Insurance company as well as respondent Nos. 3 and 4 owner and driver of the motor vehicle involved in the accident jointly and severally liable to pay the amount of compensation with interest @ 15% per annum from the date of petition till realisation, in this appeal.
(2.) BRIEF facts are as under : the respondents-claimants are legal heirs of deceased Ashok who died as a result of accident arising out of the use of motor vehicle i. e. matador bearing registration No. MYW 4614. The accident occurred on 8-7-1988 at about 2300 hrs. near Makardhokha village on Katol road, Nagpur. The deceased were travelling on a scooter. The driver of the matador in the accident had given dash to the scooter causing him grievous injuries. Ashok was immediately taken in injured condition to Mayo Hospital, nagpur where he succumbed to the injuries. Police had registered the offence under section 304 of the Indian Penal Code and under sections 89 of 112 of the Motor Vehicles Act against the driver of the matador. They visited the spot and drew spot panchanama. Thereafter the respondents had filed claim petition under section 110-A of the Motor Vehicles Act, 1939 (for short, the Act) claiming compensation of Rs. 6,00,000/ -.
(3.) THE appellants-Insurance Company resisted the claim on the contention that the third party liability of the insurance company was limited to the extent of Rs. 1,50,000/ -. Though it is not disputed that the matador involved in the accident was duly insured with it for the period 12-2-1988 to 11-2-1989 and covered the risk on the date of the accident.;