The main legal point established in the judgment is that the liability of the insurer under Section 149 of the Motor Vehicle Act is contingent upon the coverage of the risk under the insurance policy.

1. Heard learned counsel for the appellant and respondents in two sets, this appeal is being disposed of at the admission stage itself with their consent. This appeal has been preferred by the insurer against Judgment and Award passed in Motor Vehicle Claim Case No. 174 of 2001 by learned 1st Additional District Judge-cum-Additional Motor Accident Claim Tribunal, Muzaffarpur in Motor Vehicle Case No. 174 of 2001.

2. The respondents 1, 2 & 3 were the claimants before the court below, seeking compensation against death of one Prithviraj Singh, who died in a motor accident on 08.02.2001, while traveling on Tractor bearing Registration No. B.R. 33A/2057, attached with Trailor bearing Registration No. B.R. 33A/ 2058, the deceased was working as Khalasi of the Tractor aforementioned before the court below the owner did not appear nor filed written statement and as it appears from impugned order, proper service of notice was affected upon him, and in this appeal also earlier on the point of limitation notice was personally received by respondent no. 4. A few years ago delay was condoned and again for hearing and disposal of the appeal, second time notice was issued against respondent no. 4, who avoided earlier but now entered into appearance. The insurer-appellant has come out with this appeal on solitary ground that Tractor-Trailor though was insured, but there was no contact between the owner and insurer with respect to risk of any employee as Khalasi of the Vehicle in question. The risk covered only against third party and the driver of the vehicle, consequently the insurer is not liable to pay the amount so awarded. Learned counsel for respondents 1, 2 & 3 have to say nothing but to the satisfaction of his claim either from owner or from insurer. Learned counsel for the respondent no. 4, the owner initially tried to submit that before the Claim Tribunal, owner had entered into appearance and filed written statement, but subsequently on proper verification withdrew that submission. He tried his level best to get this hearing differed, but reasons were found not satisfactory. However during submission the Learned counsel for the respondent no. 4 could not dispute to this fact that for insurance of the Vehicles limited premium of Rs. 333/- (Three Hundred Thirty Three) paid and except driver and third party, there was no coverage of risk.

3. Since undisputedly the terms and conditions of the policy does not cover the risk of Khalasi as in the instant case deceased is said to be Khalasi of the vehicle in question. The insurer-appellant is not liable to pay the amount under award rather it is the liability of owner to compensate the claimants against death of deceased. Here now only question is required to be considered, whether the insurer-appellant can be directed to satisfy the award with right to recovery as contemplated under Section 149 of the Motor Vehicle Act. Section 149 of the Act reads as such:-

149. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks – (1) If, after a certificate of insurance has been issued under sub-section (3) of Section 147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under Clause (b) of sub-section (1) of Section 147 (being a liability covered by the terms of the policy) is obtained against any person insured by the policy then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment-debtor, in respect of the liability, together with any amount payable in respect of costs and any payable in respect interest on that sum by virtue of any enactment relating to interest on ju