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2002 Supreme(AP) 558

Andhra Pradesh High Court
Judges : C.Y.SOMAYAJULU
United India Insurance Co.Ltd - Appellant
Versus
Lingampally Mondi - Respondent
Decided On : 04-19-02

Headnote:

Motor Vehicles Act, 1988 – Sections 170 and 173 - Accident - Due to rash and negligent driving - Head injury and died - Seeking compensation - Appellant examined one witness as RW. 1 and marked Ex. B1 on its behalf - On basis of evidence on record Tribunal held on issue No. 1 which relates to question whether accident occurred due to rash and negligent driving of 5th respondent in favour of respondents 1 to 3 - On issue Nos.2 and 3 relating to quantum and liability of respondents 4 and 5 and appellant it held that respondents 1 to 3 are entitled to Rs. 1,34,000. 00 from respondents 4 and 5 and appellant jointly and severally with interest at 15% per annum from date of petition till date of payment and passed an award accordingly - Aggrieved thereby this appeal is preferred by insurer of vehicle involved in accident - Learned counsel for appellant is that Tribunal grossly erred in adopting 13 as multiplier when deceased was aged more than 50 years and was also in error in computing income of deceased at per annum and her contribution to respondents 1 to 3 at per year without any evidence on record and in any event since terms and conditions in Ex. B1 show that insurance does not cover passengers traveling in vehicle for hire or reward and since deceased was traveling in jeep by paying hire Tribunal was in error in passing an award against appellant – Held, Contention of learned counsel for appellant is that since deceased was traveling in jeep as a fare paying passenger and since insurance does not cover liability of fare paying passengers appellant cannot be made liable for compensation to respondents 1 to 3 - Supreme Court in NEW INDIA ASSURANCE COMPANY vs. KAMLA held that when a valid insurance policy has been issued in respect of a vehicle burden is on insurer to pay third parties whether or not there has been any breach or violation of policy conditions but amount so paid by insurer to third parties can be allowed to be recovered from insured if there is a violation of terms of policy of insurance - In this case as per Ex. B1 read with evidence of RW. 1 appellant-insurer is not liable to pay compensation in respect of passengers carrying in jeep for hire or reward - Appeal is allowed in part - Award of Tribunal is modified and an award is passed for a sum of Rs. 96,000. 00 (Rupees ninety six thousand only) with interest at 9% per annum from date of petition till date of deposit into Court with proportionate costs against appellant and respondents 4 and 5. rest of claim of respondents 1 to 3 is dismissed From out of said amount – Petition Allowed.

C. Y. SOMAYAJULU, J.

( 1 ) RESPONDENTS 1 to 3 filed O. P. No. 269 of 1996 in the Motor Accidents Claims Tribunal, Adilabad, against respondents 4 and 5 and the appellant, seeking compensation of Rs. 1,34,000/- consequent on the death of L. Rajakka (deceased), wife of 1st respondent and mother of respondents 2 and 3, alleging that on 23-5-1996 when the deceased, who was earning Rs. 2,000. 00 per month as a vegetable vendor, was traveling in a jeep bearing No. AHT. 9521 belonging to the 4th respondent, being driven by 5th respondent and insured with the appellant, from Bellampally to Ghanapur, she fell out of the jeep due to the rash and negligent driving of the 5th respondent and sustained a head injury and died on the spot.

( 2 ) RESPONDENTS 4 and 5 remained ex parte. Appellant filed its counter putting respondents 1 to 3 proof of the averments in the petition, and contending that it is not liable to pay compensation because the deceased was traveling in the jeep, as a fare paying passenger though it is not meant to be used as a taxi.

( 3 ) IN support of their case, respondents 1 to 3 examined two witnesses as P. Ws. 1 and 2 and marked Exs. A1 to A4. In support of its case, appellant examined one witness as RW. 1 and marked Ex. B1 on its behalf. On the basis of the evidence on record, the Tribunal held on issue No. 1, which relates to the question whether the accident occurred due to the rash and negligent driving of 5th respondent, in favour of the respondents 1 to 3. On issue Nos. 2 and 3, relating to the quantum and the liability of respondents 4 and 5 and the appellant, it held that respondents 1 to 3 are entitled to Rs. 1,34,000. 00 from respondents 4 and 5 and appellant jointly and severally, with interest at 15% per annum from the date of petition till the date of payment, and passed an award accordingly. Aggrieved thereby, this appeal is preferred by the insurer of the vehicle involved in the accident.

( 4 ) THE main contention of Mr. K. L. N. Rao, learned counsel for the appellant, is that the Tribunal grossly erred in adopting "13" as multiplier when the deceased was aged more than 50 years and was also in error in computing the income of the deceased at Rs. 15,000. 00 per annum and her contribution to respondents 1 to 3 at Rs. 10,000. 00 per year, without any evidence on record, and in any event since the terms and conditions in Ex. B1 show that the insurance does not cover passengers traveling in the vehicle for hire or reward, and since the deceased was traveling in jeep by paying hire, the Tribunal was in error in passing an award against the appellant. The contention of the learned counsel for the respondents 1 to 3 is that this appeal is not maintainable in view of the ratio in SHANKARAYYA AND ANOTHER vs. UNITED INDIA INSURANCE CO. LTD. , AND ANOTHER. The points for consideration in this appeal are-1. Whether the appeal filed by the insurer is not maintainable? 2. To what compensation, if any, are the respondents entitled to?

( 5 ) IN SHANKARAYYA case it is held that the insurance company is not entitled to file an appeal on merits of the claim before the High Court. The driver and owner of the vehicle involved in the accident in this case chose to remain ex parte before the Tribunal and have also not preferred an appeal against the award passed by the Tribunal. Recently the Supreme Court in UNITED INDIA INSURANCE CO. LTD. vs. BHUSHAN SACHDEVA AND OTHERS after referring to Sections 170 and 173 of the Motor Vehicles Act, 1988 (the Act) held that it is open to the insurance company to invoke the right under Section 173 of the Act to file an appeal if the insured had failed to appeal against the award passed against him. In view of the said decision of the Supreme Court, since the insured did not prefer an appeal against the award of the Tribunal, the contention of the learned counsel for the respondents that the appeal filed by the insurance company is not maintainable has no force, and so I hold that the insuranc







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