LAWS(MAD)-1965-12-7

GENERAL ASSURANCE SOCIETY Vs. N A MOHAMMED HUSSAIN

Decided On December 16, 1965
GENERAL ASSURANCE SOCIETY Appellant
V/S
N A MOHAMMED HUSSAIN Respondents

JUDGEMENT

(1.) THIS appeal arises out of an order passed by the Motor Accidents Claims tribunal (District Judge), Chingleput, awarding compensation in a sum of Rs. 4500 to the first respondent who sustained an injury, in an accident which occurred on 24-12-1961, while he was returning from Nagore to Madras in the delivery van of the second respondent--snuff factory (P) Ltd. , MSX 6134, driven by one Jayavelu, and which van has been insured with the appellant, Messrs. The General assurance Society Ltd, Madras, under a comprehensive policy including third party risk.

(2.) TRE General Assurance Society Ltd. , have preferred the appeal, on the grounds that they are not liable to pay compensation to the first respondent, that their obligation rests only with recompensing the insured company for the loss or damage caused to the insured car, that the accident did not occur while the first respondent was in the course of his employment and that the injured person was not the third party as per the provision of the Motor Vehicles Act. They further contend that the injured person being a passenger is not a third party and there is no statutory liability on the part of the Insurance Company to give compensation to the insured person and that the policy itself does not cover risk to the passenger of the car.

(3.) IN the appeal before me, learned counsel for the appellant took me through the relevant provisions of the term of the policy. Sec. II of the term of the policy deals with liability to third parties. Clause 1 is as follows: