NATIONAL INSURANCE CO LTD Vs. JAVITRI DEVI

JUDGEMENT

(1.) This appeal is by National Insurance Co. Ltd. challenging its liability to pay compensation.

(2.) In this case, counsel for appellant submitted that deceased Onkar Singh met with an accident on 12.7.1989. Onkar Singh was travelling in a tractor bearing No. CPG 8357. The said tractor was insured with the appellant company. Tractor was driven in a rash and negligent manner which caused death.

(3.) The counsel for appellant submitted that the incident occurred after enforcement of Motor Vehicles Act, 1988 and before amendment in Motor Vehicles Act, 1994 insurance company is not liable to indemnify the insured as tractor was being driven in violation of the condition of the policy. Counsel for appellant referred to a judgment in Ramji Lal v. Omkar Lal, 2004 ACJ 238 (MP). This court while referring to a judgment in the case of New India Assurance Co. Ltd. v. Asha Rani, 2003 ACJ 1 (SC), considered the question and held that the owner of the vehicle carrying passenger must pay premium for covering risk of passengers. If a liability other than limited liability is to be enhanced under an insurance policy, additional premium is required to be paid. Court further held that in the insurance policy tractor is insured for the use of agricultural and forest purposes and in the policy it was mentioned that policy shall not cover: (i) Use for hire or reward or for racing pacemaker, reliability trial or speed testing; (ii) Use whilst drawing a greater number of trailers in all than is permitted by law.