The liability of the Insurance Company in motor accident claims is determined based on the passengers covered by the insurance policy, and the compensation is quantified using principles established in relevant case law.

R. SUDHAKAR, J.

1. These appeals have been filed by the appellant-Insurance Company challenging the awards of the Motor Accident Claims Tribunal, Doda and Kishtwar for short, the Tribunal. These appeals arising out of a single accident which happened on 08.05.2008 are disposed of by a common order.

2. The ill fated Bus bearing Registration No. JK02N-2236 was proceeding from Kishtwar to Jammu. While going on hilly terrain, it rolled down the road near Barta Bridge, Hasti due to which 37 persons died and 03 were injured. The total seating capacity of the offending vehicle is 27 including the Driver and Conductor. The driver of the offending vehicle also died in the said accident. The offending vehicle was admittedly overloaded with 14 passengers.

3. It appears that an issue was framed by the Tribunal on overloading, but the Insurance Company however, did not lead any evidence to prove any breach of terms and conditions of the Insurance Policy that the offending vehicle was overloaded or that the driver of the offending vehicle was not holding a valid Driving license.

4. The plea of the appellant-Insurance Company is that in view of the decision of the Apex Court rendered in the case National Insurance Co. Ltd. v. Anjana Shyam and others, 2007 ACJ 2129 Insurance Company would at best be liable only for 27 passengers and thereafter it is the owner of the offending vehicle, who has to satisfy the award for rest of the claimants. In this case the Tribunal failed to grant that relief. It is further pleaded that in view of the decision of the Apex Court in United India Insurance Co. Ltd. v. K.M. Poonam and others, 2011 ACJ 917, the Insurance Company should be given option of paying the compensation and recovering the same from the owner of the vehicle.

5. The Hon'ble Apex Court in para 16 of the judgment Anjana Shyam's case (supra) held that:-

"16. Then arises the question, how to determine the compensation payable or how to quantify the compensation since there is no means of ascertaining who out of the overloaded passengers constitute the passengers covered by the insurance policy as permitted to be carried by the permit itself. As this Court has indicated, the purpose of the Act is to bring benefit to the third parties who are either injured or dead in an accident. It serves a social purpose. Keeping that in mind, we think that the practical and proper course would be to hold that the insurance company, in such a case, would be bound to cover the higher of the various awards and will be compelled to deposit the higher of the amounts of compensation awarded to the extent of the number of passengers covered by the insurance policy. Illustratively, we may put it like this. In the case on hand, 42 passengers were the permitted passengers and they are the ones who have been insured by the insurance company. 90 persons have either died or got injured in the accident. Awards have been passed for varied sums. The Tribunal should take into account, the higher of the 42 awards made, add them up and direct the insurance company to deposit that lump sum. Thus, the liability of the insurance company would be to pay the compensation awarded to 42 out of the 90 passengers. It is to ensure that the maximum benefit is derived by the insurance taken for the passengers of the vehicle, that we hold that the 42 awards to be satisfied by the insurance company would be the 42 awards in the descending order starting from the highest of the awards. In other words, the higher of the 42 awards will be taken into account and it would be the sum total of those higher 42 awards that would be the amount that the insurance company would be liable to deposit. It will be for the Tribunal thereafter to direct distribution of the money so deposited by the insurance company proportionately to all the claimants, here all the 90, and leave all the claimants t