The insurance company's liability arises only when there is a liability on the insured in respect of the risk of third parties, as per the provisions of the Motor Vehicles Act, 1988.

V. JAGANNATHAN, J.

( 1 ) IN this appeal, oriental Insurance Co. Ltd. has assailed the legality of the judgment and award passed by the Motor Accidents Claims Tribunal, saundatti ('the Tribunal' for short) granting a compensation of Rs. 6,30,000 to the claimant.

( 2 ) CLAIMANT, respondent No. 2, filed a petition under section 166 of the Motor vehicles Act, 1988 ('the Act' for short), claiming compensation for the injuries sustained by him in a motor accident that had taken place on 30. 4. 1994 and it was his case before the Tribunal that the jeep bearing No. KA 23-M 2015 was driven in a rash and negligent manner by the driver, respondent No. 1 and due to the said fact he lost control and the vehicle dashed to a pole on the left side of the road. Claimant sustained injuries in the accident and he suffered disability to the extent of 90 per cent and hence he claimed Rs. 8,00,000 as compensation.

( 3 ) THE Tribunal, based on the pleadings of the parties and after appreciation of the evidence led in by the claimants and the doctor and documents produced by the claimant as per Exhs. P1 to P33, recorded a finding that the accident took place on account of rash and negligent driving of the jeep by its driver. So far as compensation is concerned, on appreciation of the evidence, having regard to the gravity of injuries sustained by claimant, awarded a sum of Rs. 6,30,000 to the claimant and fastened the liability to satisfy the award amount on appellant insurance company. Aggrieved by the said award passed by the tribunal, the appellant is before us.

( 4 ) WE have heard the learned counsel appearing for the parties.

( 5 ) THE learned counsel appearing for the insurance company contended that the vehicle in question was owned by the claimant himself and the policy that was produced before the Tribunal covered only the risk of third parties and, therefore, the claimant himself being the insured and being one of the contracting parties to the policy, no liability can be fastened on the insurance company as the policy did not cover the risk of the personal injury of the insured himself. It was also contended that unless the insured is made liable at the first instance, the question of the insurer being saddled with the liability does not arise in view of the provisions of Chapters X and xi of the Act. Since the claimant being the insured and not being a third party, the policy in question does not cover the risk of the insured himself. Therefore, the Tribunal erred in holding that the insurance company is liable and the said finding is contrary to the provisions of the Act as well as law laid down by the Apex Court.

( 6 ) HAVING regard to the contentions urged before us, the only point for consideration is whether having regard to the facts and circumstances of the case, any liability can be fastened on the insurance company.

( 7 ) IT is well settled law that the liability of the insurer arises only when there is a liability on the insured in respect of the risk of third parties. In other words, provisions of the Act, in particular Chapters X and XI, go to establish that a policy of insurance is required to cover the risk of death or injury of any person of a third party and, therefore, there is no requirement under the Act for the insurance company to cover the risk of death or fatal injury to the owner of the vehicle (the insured ). This is clear from a bare perusal of section 147 of the Act. The said section reads as follows:"147. Requirements of policies and limits of liability.- (1) In order to comply with the requirements of this chapter, a policy of insurance must be a policy which- (a) is issued by a person who is an authorised insurer, and (b) insures the person or classes of persons specified in the policy to the extent specified in sub-section (2)- (i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person, including owner of the goods or his authorised representative carried

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