The insurer is liable to pay the entire compensation awarded to the claimants in a motor accident case, up to the limit of the insurance policy and as per the provisions of the Motor Vehicles Act, 1939.

LAHIRI, J. :- This is an appeal by the owner of a passenger bus No. ASN 1681 questioning the legality of the apportionment of the compensation awarded by the Member, Motor Accident Claims Tribunal, Nowgong, for short "the Tribunal" in M.A.C. Case No. 13 of 1974.

2. The appellant, owner of the vehicle claims that at all relevant time the bus was insured with the New Great insurance Company of India Ltd., which on merger is styled as "The Oriental Fire and General Insurance Company", Respondent No. 2. It is indubitable that the policy of insurance was a policy which covered against any liability up to Rs. 50,000 which might be incurred by the owner in respect of the death or bodily injury to any person caused by or arising out of the use of the vehicle in a public place.

3. The appellants vehicle driven at high speed caused a run-down accident resulting in instantaneous death of a poor labourer, Munindra Baroi. His wife respondent No. 1, for her and on behalf of her four minor children preferred a claim for compensation before the Tribunal. Opposite parties were duly notified. They appeared and submitted their say in the form of written statements, issues were framed, evidence recorded and by a reasoned judgement the learned Tribunal arrived at the conclusion that the respondent No. 1 - Smt. Milan Baroi and the four minors entitled to compensation of Rs. 35,000. He determined all the issues in favour of the claimant. The operative part of the award reads as under :-

"As per discussion above, an award of Rs. 35,000 is awarded to the claimant out of which Rs. 10,000 shall have to be paid by the owner of the vehicle Phatic Bora and the balance of Rs. 25,000 shall have to be paid by O.P. No. 2, the Insurance Company......" (Emphasis added).

4. The owner of the bus being aggrieved by the under-scored portion of the award has preferred the appeal and questioned the validity of the apportionment. Mr. Jitendra Nath Sarma learned counsel for the appellant submits that under the terms of the policy of Insurance, the insurer was liable to pay a sum of Rs. 50,000 in respect of any such accident. In the absence of any special reasons the learned Tribunal acted illegally in adopting a method contrary to the terms of the policy of insurance, when the Insurer (respondent No. 2) was obliged to indemnify the entire liability of the owner. In view of the stipulation in the policy of Insurance, the insure was bound to indemnify any liability up to Rs. 50,000 in respect of the death of Munindra arising out of the use of the vehicle. The entire liability is on the Insurer (respondent No. 2). The second limb of argument is that in view of the provisions contained in Ss 95 (1) (b) (i) and 95 (2) (b) (i) of the Motor Vehicles Act, 1939, hereinafter referred as "the Act", it is the liability of the Insurer to pay up the entire claim awarded. To bear up the argument the learned counsel relies on Rameswar Hazarika v. Promode Kanta Barua, Assam LR (1972) Assam and Naga 42 (48) (LB).

5. The policy of Insurance has been produced before us by the learned counsel for the appellant, we have perused the same. It has been inspected by Mr. S.S. Sharma, learned counsel for the respondent-insurer who admits it to be the policy. The learned counsel for the respondent submits that the insurer has no copy with it. On a bare perusal of "the policy" we find that the bus in question was insured with respondent No. 2. The period of insurance covered the period commencing from 20-10-73 to 19-10-74. The accident happened on 9-6-74. We also find that the Insurer is liable to indemnify the owner to the extent of Rs. 50,000 in respect of the death or bodily injury to any person caused by or arising out of the use of the vehicle. Therefore, we have no hesitation in coming to the conclusion that respondent No. 2 -the Insurer has had the contractual liability to indemnity the owner, against any liability arising out of any accident within the period of insurance in respect of