The Appellant, Oriental Insurance Company Limited, represented by its Branch Manager, filed this appeal challenging the award, dated 04.10.2006, in O.P.No.113 of 2005, on the file of the Motor Accidents Claims Tribunal-cum-V Additional District Judge, Fast Track Court, Anantapur, whereunder and whereby, the Tribunal awarded a compensation of Rs.2,00,000/- by granting Rs.50,000/-to the first respondent, who is the husband of the deceased and Rs.75,000/-to the second and third respondens who are children of the deceased with interest at the rate of 7.5% per annum from the date of the petition till the date of realization.

2. The appellant is the second respondent before the Tribunal. The first respondent herein is the husband of the deceased and the second and third respondents are the children of the deceased before the Tribunal. The fourth respondent herein is the first respondent/driver and owner of the tractor and trailer bearing No.AP 02C 7919 and 7920.

3. The parties are referred to herein as they are arrayed before the Tribunal for the sake of convenience.

4. The brief facts of the case are as follows:

On 30.10.2004, the first respondent who is the owner of the tractor and trailer bearing No.AP 02C 7919 and 7920 respectively engaged the deceased and others to harvest and transport groundnut oil at their Village Diguvapalli. While the deceased and others were returning in the tractor, the driver of the same drove it in a rash and negligent manner as a result of which the trailer turned turtle. The deceased and others sustained injuries and the deceased succumbed to death. The claimants claimed a total compensation of Rs.2,00,000/- under Sections 140 and 166 of the Motor Vehicle Act, 1988, and Rule 455 of the A.P. Motor Vehicles Rules, 1989, for the death of the deceased.

5. The case of the claimants is that the first respondent, who is the holder of the tractor and trailer bearing No.AP 02C 7919 and 7920, engaged the deceased and others as coolies to harvest and transport groundnut from his fields to their Village Diguvapalli. While they were returning from the fields to their village in the tractor and trailer, the driver of the said tractor drove the same in a rash and negligent manner, as a result of which the tractor and trailer turned turtle and the deceased sustained injuries and later died. It is also the case of the claimants that the deceased was aged about 25 years and was earning Rs.2,000/- per month by doing agricultural coolie work and she was one of the earning members of their family. Muchukota Police Station registered a criminal case in Crime No.69 of 2004 against the first respondent/owner and driver of the tractor and trailer.

6. The first respondent/owner and driver of the tractor and trailer remainedex parte. The second respondent/insurance company contested the case and denied the material averments made by the claimants.

7. The second respondent/insurance company resisted the claim by filing counter mainly on the ground that the deceased was an unauthorized passenger and, therefore, her risk is not covered as per the terms and conditions of the insurance policy and the first respondent/insured has violated the terms and conditions of the insurance policy while allowing the passengers to travel in the tractor and trailer. The first respondent/driver and owner of the tractor and trailer does not possess a valid driving licence. Hence, the second respondent/insurance company desired this appeal to be dismissed.

8. The Tribunal framed the following issues for consideration:

1. Whether the accident occurred on 30.10.2004 due to rash and negligent driving of Tractor and Trailer bearing No.AP 02C 7919 and 7920 by its driver and caused the death of the Saroja?

2. Whether the petitioner is entitled to compensation and if so, to what amount and from which respondent?

3. To what relief?

9. On behalf of the claimants, the first claimant, who is the husband of the deceased was examined as P.W.1 and one