1. The extent of appellant-Insurance Companys liability is the bone of contention in this appeal. Is it Rs. 15,000/- or Rs. 75,000/- is the question? MACT Kathua has fixed it at Rs. 75,000/- and that is why this appeal.

2. Facts lie in a brief compass. One Romesh Chander an employee in JKSRTC was filled while travelling in Bus No 627-JQK along-with a Barat Party on August 10, 1982. His legal representatives filed the claim petition and appellant Company resisted it on the ground that its liability was limited to Rs. 15, 000/- as prescribed by law. The Tribunal rejected the contention and relying on 1989 (2) ACC: 459 and AIR 1988 Bombay 118, held as under:

"Mr. Ravi Gupta appearing for Insurer has argued that the liability of the Insurer is limited only up to Es. 15,000/- and to support this he referred 1988 (II) ACC: 363 and 1987 (2) ACC: 262 to support the view.

However,none of these judgments are applicable to the facts of the case in view of the statutory liability fixed by S 95 of the Act, as stated above. This view that the outer limit statutory liability u/s 95 is Rs. 75,000]- finds support from the judgment of Bombay High Court in United India Insurance Co. Ltd Vs Antonetta D,s

Click Here to Read the rest of this document