The central legal point established in the judgment is the interpretation and application of Section 167 of the Motor Vehicles Act, which provides the claimant with the option to choose the forum for claiming compensation, and the obligation of the tribunals to award just and reasonable compensation.

R.L. JHANWAR, J.

1. The oriental Insurance Company has filed this appeal for setting aside award dated 30th January, 2006 passed by the 12th Additional Motor Accidents Tribunal (F.T.C.)/ Durg in claim case No. 39/2005 whereby the Claims Tribunal awarded a sum of Rs. 2,91,400/ - as compensation to the claimant Nos. 1 to 4.

2. Brief facts, in a nutshell, are that on the date of incident i.e., 23rd October, 2002 deceased Alakh Bihari Sao was the driver carrying Tomatoes from Bhilai to Jagadalpur in vehicle 407 bearing No. C.G. 07ZB/1078 (offending vehicle). At one kilometre away from Parasgaon, due to his own rash and negligent driving, the offending vehicle became uncontrolled, resulting into, hit against the mango tree, and Alakh Bihari has died instantaneously on the spot.

3. On account of death of Alakh Bihari, the legal representatives of the deceased preferred a claim petition u/s 166 of the Motor Vehicles Act.

4. Respondent No. 5-Owner of the offending vehicle filed his written statement contending that he had no knowledge as to how the accident took place; on the date of accident the said offending vehicle was insured with the Appellant/Insurance Company, therefore, Insurance Company is liable for payment.

5. The Appellant/Insurance Company also filed its written statement denying all the facts as mentioned in claim petition. It was specifically pleaded therein that on the date of accident, the vehicle was being driven against the terms and conditions of the insurance policy.

6. After affording opportunity of hearing to the parties and recording evidence of the parties, the Claims Tribunal, on close scrutiny of the evidence led before it, inter alia, holding that the driver of the offending vehicle was himself negligent in driving the offending vehicle rashly, due to which, the said offending vehicle was uncontrolled, resulting into, death of driver on the spot, awarded a sum of Rs. 2,91,400/- as total compensation to the claimants with interest at 7% per annum from the date of filing of claim petition till the date of actual payment. It is this order; the Appellant/ Insurance Company referred this appeal.

7. Learned Counsel for the Appellant argued that basic premium of Rs. 30/- was paid by the owner to cover the risk of driver and cleaner of the vehicle but under Annexure A-2 of policy of insurance the basic premium did not cover the risk of driver. He also argued that since the Appellant/Insurance Company was restricted to Workmen's Compensation Act (for short 'the Act') and covered the risk of driver and cleaner under the Act, therefore, for the driver the Appellant is not liable under Motor Vehicles Act. He also argued that legal liability for paid driver/ workmen No. 2 was mentioned in the policy, therefore, the liability of the Insurance Company was fixed statutorily under Workmen's Compensation Act. It was also argued that the insurance policy is in fact a contract between the parties and the policy being in nature of contract, the parties are bound by the insurance policy. It was also argued that under Workmen Compensation Act, the claimant is entitled to receive compensation of Rs. 2,26,044/- instead of Rs. 2,91,400/- Lastly, it was urged that compensation of Rs. 2,91,400/- awarded by the Tribunal is on higher side.

8. On the other hand, learned Counsel for the Respondents/claimants No. 1 to 4 while supporting the impugned award argued that compensation awarded by the learned Tribunal is just and proper compensation.

9. Having heard learned Counsel for the parties, I have perused the record of the Claims Tribunal and impugned order.

10. In this case, for the death of driver Alakh Bihari on account of motor accident, the legal representatives of the deceased filed claim petition u/s 166 of the Motor Vehicles Act and the learned Claims Tribunal also awarded compensation under the provisions of M.V. Act, to the claimants. Section 167 of the M.V. Act starts with non-obstinate clause and under this Section, option w