This appeal is directed against the judgment and award dated 10.09.2008 passed in MVC No.4378/2006 by the III Additional Judge and Member, MACT, Bangalore, (SCCH-18).

2. The appellant- United India Insurance Company Limited questioned the judgment and award of the learned Member as stated above and prays for setting aside the judgment and award which directs him to pay the compensation of Rs.2,00,000/- together with interest at the rate of 6% p.a. from the date of petition till realization.

3. In order to avoid confusion and overlappings, parties hereinafter are referred to with reference to their rankings as it stood before the Tribunal.

4. The incident that gave rise to the initiation of the proceedings is that, on 19.1.2006 at about 4.30 p.m. near KEB Circle, Hoskote Circle, Maxi Cab bearing Registration No.KA.03.6139 was driven in a rash and negligent manner dashed against the petitioner when she was standing at KSRTC bus stop. A criminal case came to be registered in Crime No.41/2006 by Hoskote Police against the driver of the maxi cab. The petitioner received the injuries, sustained permanent disability and incurred expenditure for treatment. Thus, she presented a claim petition seeking an amount of Rs.5,00,000/- as compensation.

5. Before the Tribunal, Insurance Company appeared and filed written statement denying all the allegations made and first respondent remained absent and was set exparte.

6. The learned Member was accommodated with the oral evidence of PWs 1 and 2 and RW1 and documentary evidence of Exs.P1 to P9 and Exs.R1 to R10.

7. The learned Member after hearing the parties considered the case on the basis of the oral and documentary evidence and other materials available on record and partly allowed the petition and granted the compensation as stated above and directed the Insurance Company to deposit the compensation amount which is challenged in this appeal.

8. The learned counsel for the Insurance Company Sri. A.N. Krishna Swamy, would submit that policy claimed to have been issued for the offending vehicle was not in force as on the date of the accident, as the cheque issued by the owner of the vehicle Mrs. Suguna towards subscription was dishonoured for want of sufficient funds and the insurance company communicated the fact of dishonour of cheque for Rs.5,415/-.

9. Learned counsel would emphasizes on the point of consideration and claims the contract of insurance was void abinitio and destitute of legal effects. Thus, he stresses that there existed no valid policy at all.

10. Insofar as injuries are concerned, it is stated that claimant sustained injuries in the accident as under:

Injuries:

1. Cut lacerated wound over 4 x 4 over anterior medial aspect of left leg at tibial tuberosity noted.

2. Underlying bone not exposed

3. Degloving injury.

4. Two more cut lacerated wounds over the postero medial aspect.

5. X-ray showed fracture left tibia at proximal metaphysis with little displacement.

Diagnosis of type II open fracture left tibia was made and that during treatment thorought debridement and primary closure of wound and closed reduction and A/k dorsai slab application done and after 2 days wound inspected and found, blackish at anterior aspect of the wound, doubtful sensation of wound and skin didi not survive. On 25.01.2006 serial excision of the layers of necrosed skin done with skin grafting both front and back of leg and then he had regular dressings, wound healed and fracture united, had regular follow-up till fracture united which took 3½ months. Recently on 20-07-2008 she came with complaints of pain while playing and on walking long distance, difficulty in squatting and sitting in toilet, friends made fun of her at school due to her inability to play with them. And that on examination, he found following disabilities:

Left lower limb eventually rotated from below knee joint noted, wound well hea