NEW INDIA ASSURANCE CO LIMITED Vs. RAJASTHAN STATE ROAD TRANSPORT
LAWS(RAJ)-2003-2-60
HIGH COURT OF RAJASTHAN
Decided on February 03,2003

NEW INDIA ASSURANCE CO LIMITED Appellant
VERSUS
RAJASTHAN STATE ROAD TRANSPORT Respondents

JUDGEMENT

RAJESH BALIA, J. - (1.) HEARD the learned Counsel for the parties.
(2.) THE only question raised before us is whether in a case, the liability of the Insurance Company is held to be limited to the statutory liability under Section 95(2) of the Motor Vehicles Act, 1939 towards third party in respect of the goods/properties which have been damaged as a result of the accident, the Insurance Company is required in the first instance to satisfy the entire claim which the owner of such goods/property is entitled to recover from the owner of the vehicle, and the insurance company, when the vehicle is insured, may be left to recover the same from the owner of the vehicle, as per their inter se rights. The learned Single Judge relying on the decision of the Hon'ble Supreme Court in case of Oriental Insurance Co. Ltd. v. Cheruvakkara Nafaeesu and Ors., reported in AIR 2000 SCW 4535 corresponding to : AIR2000SC235 has held as under: Thus it may be that the liability of the insurance company may be limited to an extend but for that reason the right of the claimant to be indemnified by the insurance company to the extent of the entire affected and the insurance company shall be entitled only to recover such excess amount as it has paid beyond the limit of its liability from the insured.
(3.) WITH this conclusion, the award made by the M.A.C.T. to that effect was sustained.;


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