The main legal point established in the judgment is the interpretation of the personal accident cover under the insurance policy and its applicability to both the owner and the driver of the insured vehicle.

1. The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs.1,00,000/- has been awarded to respondents No.1 to 3.

2. The accident dated 14th/15th April, 2008 resulted in the death of Minraj Bhushal. The deceased was survived by his parents and brother who filed the application for compensation before the Claims Tribunal.

3. Learned counsel for the appellant urged at the time of hearing that the personal accident cover for Rs.1,00,000/- covers the owner if he had been driving the insured vehicle at the time of accident but it would not cover the driver other than the owner. It is further submitted that the appellant had issued personal accident cover in respect of the owner only and the deceased was not the owner/insured of the motorcycle.

4. The Claims Tribunal held that the personal accident cover for Rs.1,00,000/- issued in respect of the owner-cum-driver covered the driver. The findings of the Claims Tribunal are reproduced herein below:-

“12. Sh. Anand Singh Rawat Asstt. The New India Assurance Co. Ltd. appeared as R2W1 and produced the attested true copy of the insurance policy bearing No.310400/31/07/01/00003765 which was issued in favour of Amir Hashim (R-1) and was valid from 15/2/08 to 14/2/09 for the vehicle bearing registration No. KL-11-U-8629. Copy of the same is Ex.R2W1/A(coll. Three sheets) (OSR). Notice u/o 12 rule 8 CPC was issued to owner Sh.Amir Hashim, through registered AD for producing the D/L of the driver and original insurance policy. Notice is Ex.R2W1/B, postal receipts is Ex.R2W1/C. No reply has been received in compliance of the said notice from the regd., owner by the company till today. As per details of the insurance policy the driver of offending/alleged vehicle was not covered due to non receipt of any premium regarding the covering risk of driver. Insurance company has no liability to make the payment of any compensation due to the reason that accident had taken place due to the rash and negligent act of the deceased himself.

13. During cross examination by counsel for petitioner he deposed that he admitted that a sum of Rs.50/- has been paid towards Personal Accident to owner-cum-driver which is mentioned at page no.2 of the insurance policy. Thereafter respondent’s evidence was closed and case was fixed for final arguments.

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19. ……………by virtue of terms and conditions mentioned in the certificate of insurance admittedly brought on record, on the second page of the said certificate it is mentioned that a premium of Rs.50/- is paid towards compulsory personal accident to owner-cum-driver and the limited liability towards this head is also mentioned to the tune of Rs.1,00,000/- and also relying upon observations in a decided case cited as Oriental Insurance Co. Ltd. Vs. Rajni Devi (2008) 5 SCC 736 and New India Assurance Co. Ltd. vs. Sadanand Mukhi (2009) 2 SCC 417 wherein it has been categorically held that in a case where third party is involved, the liability of the insurance company would be unlimited. It was also held that where, however, compensation is claimed for the death of the owner or antoher passenger of the vehicle, the contract of insurance being governed by the contract qua contract. In such circumstances, I am of the view that the petition is maintainable only on the basis of the premium paid towards compulsory personal accident to owner-cum-driver and not otherwise. This issue is decided accordingly.

20. …………by virtue of the terms and conditions mentioned in the certificate of insurance admittedly brought on record on the second page mentioning Schedule of Premium a Premium of Rs.50/- is paid towards Compulsory Personal Accident to Owner-cum-Driver and the amount insured towards this head is also mentioned as Rs.1,00,000/-, thereby it is established that the claim of the petitioner against the insurer would depend upon the terms thereof, therefore, by virtue of the terms and conditions agreed between the insured and insurer coupled w