The main legal point established is that the Insurance Company is liable to pay compensation despite the driver not having a valid driving license, and it can recover the amount from the owner of the vehicle.

1. Master-Abdul Majid Khatana, a young boy of 14/15 years lost his life in vehicular accident involving vehicle bearing registration no. JK01-2247 at Madin Sahib, Hawal Chowk. His parents laid a claim petition under Section 166 Motor Vehicles Act before Motor Accident Claims Tribunal, Srinagar. They pleaded that the offending vehicle was being rashly and negligently driven by its Driver when it hit their son riding on a bicycle. It was averred that the accident had led to registration of case FIR no. 50/2005 under Sections 279, 304-A at Police Station, Lal Bazar, Srinagar.

2. The owner and driver of the offending vehicle, though duly served did not come forward to oppose the claim petition.

3. The Tribunal on going through the pleadings framed following issues:-

"1. Whether on 5.9.2005 Abdul Majid Khatana, the deceased while travelling on a Bicycle on the left side of the road at Madin Sahib, Hawal Chowk was hit by a Tipper bearing registration No. JK01-2247 when being driven rashly and negligently by the respondent no. 3 from Hawal to Lal Bazar with the result he sustained fatal injures and died on his way to Hospital? OPP.

2. If the issue No. 1 proved in affirmative, whether the petitioners as the legal representatives are entitled to compensation on account of death of the deceased and if so to what extent and from whom? OPP.

3. Whether the deceased was learning the cycling on the wrong side of the main road and on account of his own negligence collided with the bumper of the vehicle and sustained injures and as such the petitioners are not entitled to be compensated for the death of the deceased? OPR-3

4. Whether the respondent NO. 1 owner of the vehicle was passed away, whereas the petitioners have failed to bring on record his legal representatives and as such the claim petition in the present form is not maintainable?

5. Whether the driver of the offending vehicle was not holding the valid driving license and as such the Company is not liable to indemnify the owner for any liability on account of the accident caused? OPR-1

6. Relief."

4. The parties adduced evidence to discharge the onus of proving issues, burden whereof was placed on them respectively. The Tribunal decided all the issues in favour of the claimants and worked out Rs. 3,85,000/- as compensation payable by the Insurance Company to the claimants. The Tribunal while holding the driver of the offending vehicle to have been driving the vehicle without valid and effective driving licence, held the Insurance Company to be still liable to pay compensation as it failed to prove that the fact of driving licence being ineffective was in the knowledge of the owner of the vehicle and that the accident was attributable to ineffective driving licence of the driver of the offending vehicle.

5. The Insurance Company questions the Award dated 18.07.2009 in the present Civil 1st Miscellaneous Appeal on the ground that the liability to indemnify the owner was erroneously fastened on the Insurance Company and that the compensation worked out was excessive and on higher side.

6. I have gone through the appeal as also the impugned award and have heard learned counsel for the parties.

7. The Tribunal while computing loss of income to the claimants-respondents 1 and 2 herein, has taken age of the deceased as 16 years applied multiplier of 15, having regard to the age of respondents 1 and 2, and assuming that the deceased contributed an amount of Rs. 24,000/- annually to his family kitty, computed compensation as Rs. 24,000 x 15 = Rs. 3,60,000/-. The Tribunal added Rs. 24,000/- on account of loss of estate and Rs. 5,000/- on account of funeral expenses. The total compensation was, accordingly, determined as Rs. 3,85,000/- and the amount so determined, directed to carry interest @ 6 % per annum from the date of filing of the complaint till its final realization. The Tribunal while fixing Rs. 24,000/- as annual contribution -made by the deceased to its parents, relied upon law laid down by the

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