- (1.) By a common order, the Court intends to dispose of the present appeal, F.A.O. No. 5757 of 2012 titled 'Reliance General Insurance Company Limited Vs. Poonam and others' and F.A.O. No. 5758 of 2012 titled 'Reliance General Insurance Company Limited Vs. Sanjay and others' as both of them arise out of the same impugned award.
(2.) In order to challenge the award passed by the Motor Accidents Claims Tribunal, Sonepat on 4.4.2012 to the extent of directing the payment of the compensation amount to the claimants in first instance and, thereafter, to recover the same from the driver and owner of the offending vehicle, the Insurance Company has filed the present appeal under Section 173 of the Motor Vehicles Act, 1988.
(3.) While directing the Insurance Company to pay the compensation amount first and, thereafter, to recovery the same from the driver and owner of the offending vehicle, the Tribunal observed that at the time of the accident, the offending vehicle was not only overloaded but was being plied for carrying passengers for consideration. The terms of insurance policy Ex.R3 clearly showed that offending vehicle was registered as a private car. Carrying of passengers was clear violation of terms and conditions of the insurance policy and, therefore, the driver and owner of the offending vehicle were not liable to be indemnified by the Insurance Company. However, taking into consideration the beneficial nature of the provisions of the Act, the Insurance Company ought to pay the compensation to the claimants with liberty to recover the same from the driver and owner of the offending vehicle by filing execution.;