The liability of the insurance company arises only after the liability of the insured is fixed, and the insurance company is in the nature of indemnifying the insured for the loss that he incurs on his being made to pay compensation to the claimants.

1. This appeal questions the legality and correctness of the judgment and order which fastens liability to pay compensation while exonerating the insured and the owner of the offending vehicle from very same liability, which has been passed on 22nd June, 2016 by Motor Accident Claims Tribunal, Chandrapur, in Motor Accident Claim Petition No.116/2003.

2. A claim petition was filed under Section 166 of the Motor Vehicles Act by the respondent Nos.1 to 4 against the appellant and respondent Nos.5 and 6, the insurer, the owner and the driver of the offending vehicle, one matador bearing registration No.MH-34/A-1630. Deceased Jaydev, husband and father of the respondent Nos.1 to 4 respectively was travelling by this vehicle on 26.3.2003. He was proceeding to Bramhapuri from Piprada and on way, due to rash and negligent driving of the vehicle, the vehicle turned turtle and the accident occurred. In this incident, deceased Jaydev lost his life on the spot of the accident.

3. It appears that the claim petition was resisted only by the appellant which filed its written statement. The petition was dismissed against respondent No.5, the insured and the owner of the offending vehicle because, respondent Nos.1 to 4 the claimants took no steps to serve the respondent No.5. The dismissal order was specially passed below Exh.-1, the claim petition, on 15.7.2010 by the Claims Tribunal, Chandrapur. The respondent No.3 though duly served, chose to remain absent before the Tribunal and, therefore, the petition was proceeded against him exparte.

4. On merits of the case, the Tribunal found that the respondent Nos.1 to 4 were entitled to receive compensation of Rs.5,17,000/- together with interest at the rate of 7.5 % p.a. from 22.6.2016 till actual realization, inclusive of no fault liability of Rs.50,000/-. It further found that this compensation was payable jointly and severally by the insurance company and owner of the offending vehicle/insured and driver of the offending vehicle. The judgment and order in this regard were passed on 22.6.2006. Being aggrieved by the same, the appellant is before this Court in the present appeal.

5. I have heard Shri B.P. Bhatt, learned counsel for the appellant. Nobody is present on behalf of respondent Nos.1 to 5 though duly served. Ample opportunities have also been granted to them to make their final submissions, but to no avail. In fact, the first notice that was issued by this Court on 21st December, 2016 itself indicated that the matter would be finally heard. On 3rd October, 2017, the appeal was fixed for final disposal, by consent. On 10th October, 2017, learned counsel for the appellant and learned counsel for the respondent Nos.1 to 4 were present, although nobody was present on behalf of respondent Nos.5 and 6. On 10th October, 2017, the appeal was extensively heard but learned counsel for respondent Nos.1 to 4 was of the opinion that this Court must grant time to her. In deference, the time was granted and the matter was kept for final disposal on the next day i.e. 11th October, 2017. On 11th October, 2017, it was urged by learned counsel for respondent Nos.1 to 4 that record and proceedings were necessary, which was inspite of the fact that it was agreed earlier that record and proceedings would not be required in the present case as the issue involved could be decided on the basis of admitted facts and applicable law. Yet, this Court, passed an order calling for record and proceedings. The record and proceedings were received on 13th November, 2017 and now, this matter has been taken up for final disposal. But, as stated earlier, nobody is present on behalf of respondent Nos.1 to 4. Similarly, respondent Nos.5 and 6 are also absent. Therefore, I have considered the submissions made by learned counsel for the appellant. I have gone through the record and proceedings and also the impugned judgment and order.

6. Now, the only point which arises for my determination is :

Whether any liability to p