JUDGMENT :

Both these appeals are being decided by a common judgment, as these arise out of the same judgment and involve common question of facts and law.

2. Appellant in FAO No. 60 of 2017 (shall hereinafter be referred to as ‘insurer’), respondents No. 1 and 2 as ‘claimants’ and respondent No.3 as ‘insured’ for the sake of convenience.

3. The claimants filed petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal (for short ‘MACT’), Shimla vide case No.60- S/2 of 2014/12 inter alia claiming compensation to the tune of Rs.15,00,000/- alongwith interest at the rate of 18% per annum on account of death of their son Nikhil Singha (hereinafter referred to as ‘deceased’), who died in the motor vehicle accident involving Mahindra Pick-up No. HP-63B-0540 at 3.00 A.M. during intervening night of 4/5.1.2012 in between Bhatta-kuffar and Sanjauli tunnel. The deceased was 24 years of old and was an occupant of aforesaid vehicle at the time of accident. Vinay Awasthi was driving the vehicle at the time of accident and cause of accident was state