Mansoor Ahmad Mir, J.

1. Both these appeals are the outcome of one award, dated 31st May, 2008, passed by the Motor Accident Claims Tribunal, Solan, (for short, the Tribunal), in Claim Petition No. 40-S/2 of 2006, titled Gayatri Devi and another v. Pinki Devi and others, whereby compensation to the tune of Rs. 5,36,000/- with interest at the rate of 9% per annum from the date of filing of the claim petition till realization, came to be awarded in favour of the claimants and the insurer was saddled with the liability, (for short the impugned award). In addition, Rs. 1,000/- was also awarded as costs. Accordingly, both the appeals are taken up together for final disposal.

2. FAO No. 509 of 2008 has been filed by the insurer challenging the impugned award on the ground that the Tribunal has fallen in error in saddling the insurer with the liability since the driver of the offending vehicle was not having a valid and effective driving licence to drive the offending vehicle. The claimants have laid challenge to the impugned award by filing FAO No. 136 of 2010 on ground of adequacy of compensation.

3. In order to determine the above questions, brief resume of the facts of the case