- (1.) HEARD both sides.
(2.) THIS appeal is by the Insurance Company (Respondent No. 2) before the Motor Accident Claims Tribunal in a claim for compensation. The Tribunal held that the parents of the deceased was entitled to a compensation of Rs. 1,50,000/-. After marking the policy of insurance as Ext. A, the Tribunal held that the Insurance Company was liable to pay the entire amount. The Insurance Company appealed. It contended before the learned single Judge that its liability was limited to the statutory minimum under Section 95(2) of the Motor Vehicles Act, 1939. It was contended that it was a passenger bus, which had a capacity to carry fifty passengers and the premium to cover the risk was at the rate of Rs. 12/- per head and that indicated that it was merely a statutory policy and the liability was not unlimited. It was, therefore, submitted that the entire amount was not liable to be paid by the Insurance Company. This contention was met on behalf of the claimants by submitting that the liability regarding passengers and their personal injury was unlimited as per the policy and there was nothing to show that the liability was limited. The learned single Judge on a consideration of the policy came to the conclusion that there was no reason to interfere with the finding of the Tribunal that the insurance company was liable to honour the Award in its entirety. But finding that the Award of penal interest was not justified, the learned Judge interfered with that part of the Award and reduced the liability of the Insurance Company. Feeling aggrieved, the Insurance Company has filed this appeal.
(3.) LEARNED counsel for the insurance company with reference to the policy submitted that in view of the fact that a premium of Rs. 12/- per head alone was paid, the liability was only statutory liability as limited by Section 95 of the Motor Vehicles Act, 1939 and going by the decision of the Supreme Court in New India Assurance Co. Ltd. v. C.M. Jaya and Ors., 2002 (1) JCR 383 (SC), the liability must be limited to the statutory liability. Counsel also referred to the various decisions of the Supreme Court and the recent decisions of this Court in Oriental Insurance Co. Ltd v. Lalmuni Devi and Anr., 1998 (2) PLJR 151. Jay Singh v. Lalmuni Devi and Anr., AIR 2000 Pat 187 and Oriental Insurance Co. Ltd. v. Dilip Kumar Saha and Anr., 2002 (2) JCR 364 (Jhr): 2002 (2) JLJR 269.;