IMPORTANT POINT
The main legal point established in the judgment is the interpretation of insurance policy conditions and the computation of compensation under the Motor Vehicles Act, 1988, Section 147.

ORDER :

1. Both these appeals arise out of the impugned judgment and award dated 30.06.2017 passed by Motor Accident Claims Tribunal, Bhadra, District Hanumangarh in Motor Accident Claim Case No. 46/2015 (48/2015).

S.B. Civil Misc. Appeal No. 2640/2017 has been preferred by the Insurance Company with a prayer to set aside the impugned judgment/award whereby an award for a sum of Rs. 7,82,080/- with interest @ 9% per annum has been passed in favour of the claimants whereas S.B. Civil Misc. Appeal No. 2875/2017 has been preferred by the claimants seeking enhancement of the compensation amount as awarded vide the impugned judgment/award.

2. Brief facts as per the claim petition are that on 25.09.2015, deceased Sanjay Kumar was travelling in Car No. RJ-49-CA-0646 driven by Manoj and owned by Jaideep from Bhadra to Khatushyamji. When they reached Kishangarh (Dhani Charnan), a cow came in front of car and as the car was driven rashly and negligently by its driver, the same could not be controlled and hence, overturned. As a result, the deceased fell out and being run over by the car, died on the spot.

3. The Insurance Company has challenged the impugned judgment/award on the ground that the vehicle in question was, at the time of accident, run on hire and the same being a breach of the insurance policy, the insurance company could not have been held liable to indemnify the owner.

4. Learned counsel for the Insurance Company submitted that the policy in question comprised of a specific condition that the policy shall cover use of the vehicle for any purpose other than hire or reward. As the vehicle in question was being driven on hire, in terms of the above condition, the policy would not cover the compensation qua death of the deceased. To substantiate his arguments, learned counsel relied upon the statements of AW-2/Jatin who admitted the fact that the car was hired (although he pleaded ignorance regarding the person who hired the same).

Counsel further relied upon the statements of AW-1, wife of the deceased, who admitted in her cross examination that Manoj and Jaideep, driver and owner of the car respectively, were not her relatives. He further pointed out to the specific averment in the claim petition itself to the effect that the driver and owner of the vehicle are neither relatives nor acquaintances of the claimants.

5. Learned counsel submitted that what can be concluded from the above facts is that neither of the passengers travelling in the vehicle were known to each other nor were they relatives and hence, it is clear that the vehicle was hired and several persons were travelling in the capacity of passengers. Thus the same would not be covered by the insurance policy in question and hence, the insurance company cannot be held liable to pay the compensation. He submitted that liability, if any, would solely be of the owner and the insurance company deserves to be exonerated.

6. On quantum, learned counsel submitted that the rate of interest as awarded by the learned Tribunal being on a higher side, deserves interference.

7. Per contra, learned counsel for the claimants submitted that it was proved on record that Manoj, driver of the vehicle and other passengers were very well known to each other. Learned counsel relied upon the statement of AW-3/Vicky who specifically denied the factum of the car being hired and stated that deceased Sanjay Kumar and he frequently travelled together. Learned counsel further relied upon statement of NAW-1/Manoj, driver of the vehicle in question, who specifically admitted that deceased Sanjay Sharma was working as an ad-hoc teacher in the school of which his father was the Manager and wherein, he himself was a teacher.

Learned counsel further submitted that even NAW-2/Ashish, Assistant Manager of the Insurance company, admitted that he did not conduct any enquiry regarding the factum of the car be