The insurance policy covered passengers, and the court upheld the Tribunal's compensation calculation using the multiplier method, enhancing the total to Rs.5,38,300.

JUDGMENT :

This appeal is directed against the order of the Chairman, Motor Vehicle Accident Claims Tribunal-cum-VI Additional District Judge, Prakasam at Markapur (hereinafter called as ‘the Tribunal’) in M.V.O.P.No.47 of 2012 dated 13.05.2016.

2. The appellant is the insurer of the Jeep bearing No. AP 03 V 5509 (hereinafter referred as “crime vehicle”). The respondent Nos.1 to 3 herein are the parents and brother of one G.Thirupathaiah (hereinafter called as ‘the deceased’)respectively. The respondent Nos.4 to 6 are the driver and owners of the said crime vehicle.

3. For the sake of convenience, the parties hereinafter referred to as they arrayed before the tribunal.

4. The case of the claimants, in the petition before the Tribunal is that:

i). On 10.10.2006 at about 09.30 p.m., while the deceased along with others proceeding in the crime vehicle, when they reached near Pothuvaripalli Bus Stop, the 1^st respondent driver of the crime vehicle driven the same in a rash and negligent manner at high speed and dashed the rear side of the stationed lorry bearing No.AP 04 T 1656, resulted the deceased died on the spot.

ii). The deceased used to attend agricultural works and earning Rs.4,000/- per month, contributed the same for the welfare of the family. Being dependents, they claimed compensation of Rs.5,00,000/- against the driver, owners and insurer of the crime vehicle.

5. The respondent No.3/insurer filed written statement denying the averments in the petition and pleaded that the petition is bad for non-joinder of necessary parties; that the 1st respondent is not having valid driving license to drive the crime vehicle; that there is no coverage of policy at the time of accident; that the compensation claimed by the claimants is excessive and thereby, prayed to dismiss the petition.

6. The Tribunal settled the following issues for enquiry basing on the material:

“1. Whether the deceased G.Thirupathaiah died in motor accident due to rash and negligent driving of jeep bearing No.AP 03 V 5509 by R1?

2. Whether petitioners are entitled for compensation as prayed, if so against whom? and

3. To what relief?”

7. During enquiry, on behalf of the claimants, PWs.1 and 2 were examined, Exs.A.1 to A.5 and X.1 were exhibited. On behalf of the respondent No.3/insurer, R.W.1 was examined and Ex.B.1 was marked.

8. On the material, the Tribunal, having concluded that the accident occurred due to the negligent riding of the crime vehicle by its driver/1st respondent, held that the claimants are entitled for the compensation of Rs.5,00,000/-, with interest at 9% per annum from the date of petition till the date of realization against the respondent Nos.1 to 4, for the death of the deceased in the accident.

9. It is against the said order; this appeal was preferred by the insurer of the crime vehicle.

10. Heard Sri S.Murali Mohan, learned counsel for the appellant/insurer and Sri P.Spandana, learned counsel representing Sri P.Radhika, learned counsel for the respondent Nos.1 to 3/claimants.

11. Sri S.Murali Mohan, learned counsel for the appellant/insurer submits that the policy issued in respect of the crime vehicle does not cover the risk of the deceased, who was travelling in the crime vehicle as passenger by the time of incident; that the driver of the crime vehicle is not having valid driving license to drive the same; that the Tribunal erred in deducting 1/3^rd towards personal and living expenses, instead of 50% from the income of the deceased and thereby, prays to consider the present appeal.

12. Sri P.Spandana, learned counsel representing Sri P.Radhika, learned counsel for the respondent Nos.1 to 3/claimants submits that the Tribunal after considering the material placed on record, rightly concluded that the accident occurred only due to the negligence of the driver of the crime vehicle; that Ex.B.1 policy issued in respect of the crime vehicle cover the risk of passengers, thereby, the insurer is liable to pay compensation to the claimants; that the clai