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The New India Assurance Company Vs. Laxmi Devi and ors. - Court Judgment

LegalCrystal Citation
SubjectInsurance;Motor Vehicles
CourtMadhya Pradesh High Court
Decided On
Judge
Reported in2(1985)ACC380
AppellantThe New India Assurance Company
RespondentLaxmi Devi and ors.
Excerpt:
- .....section 110-a of the motor vehicles act claimsing compensation from the owners and drivers of taxi and truck as also the insurance company. both the truck and the car were insured with the appellant. the claims was contested by the respondents. the tribunal award a sum of rs. 20,000/- as compensation to the claimsants against the appellant and the owner and the driver of the taxi car holding that the accident took place on account of negligence of the driver of the taxi car, and the driver of the truck was not responsible for the accident. aggrieved by the award of the tribunal, the insurance company has preferred this appeal. the claimsants filed cross-objections objecting to the amount of compensation awarded by the tribunal. the appeal and cross-objections were heard together.2......
Judgment:

R.K. Vijayvargia, J.

1. There was a collision between the Motor Truck No. MPM 3159 and Taxi Car No. MPI 1297 on 1-2-1979 near Shajapur. The deceased Sardarsingh was a passenger in the taxi. He succumbed to the injuries caused to him. The claimsant filed and application Under Section 110-A of the Motor Vehicles Act claimsing compensation from the owners and drivers of taxi and truck as also the Insurance Company. Both the truck and the car were insured with the appellant. The claims was contested by the respondents. The tribunal award a sum of Rs. 20,000/- as compensation to the claimsants against the appellant and the owner and the driver of the taxi car holding that the accident took place on account of negligence of the driver of the taxi car, and the driver of the truck was not responsible for the accident. Aggrieved by the award of the tribunal, the Insurance Company has preferred this appeal. The claimsants filed cross-objections objecting to the amount of compensation awarded by the tribunal. The appeal and cross-objections were heard together.

2. The tribunal on appreciation of the evidence hold that the driver of the truck was not responsible for the accident and that the taxi car dashed against the standing motor truck. In the cross-objections filed by the claimsants, this finding recorded by the tribunal has not been assailed.This finding therefore has become final. The cross objections filed by the claimsants therefore have no substance and are dismissed.

3. The only question which arises for consideration in this appeal is whether the tribunal was justified in holding that the appellant Insurance Company is liable to pay the full amount of compensation awarded by the Tribunal The liability of the Insurance Company for the death of a person travelling as a passenger in a motor car is limited to Rs. 10,000/- only, and therefore the Insurance Company cannot be held liable to pay more amount as compensation to the claimsants. The award passed by the Tribunal therefore deserves to be modified to this extent.

4. As a result of the discussion aforesaid, this appeal is allowed. The award passed by the Tribunal is modified. It is directed that the appellant shall pay a sum of Rs. 10,000/- as compensation with interest thereon and the costs of the tribunal to the claimsants.The award passed by the tribunal against the non-applicants 4 and 5 Dharamdas and Madansingh shall stand. In the circumstances of the case, the parties shall bear their own costs of this appeal.


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