JUDGEMENT

1. The appellant/Insurance Company has challenged award dated 18.11.2008 passed by the learned Motor Accidents Claims Tribunal, Kathua (hereinafter to be referred as "the Tribunal"), whereby respondent Nos. 1 to 4 (claimants) have been awarded compensation in the amount of Rs. 2,62,896/- alongwith interest at the rate of 7.5% per annum from the date of filing the claim petition till the payment is made.

2. It appears that respondent Nos. 1 to 4/claimants had filed a claim petition before the Tribunal pleading therein that on 27.06.2002 while deceased Tejinder Singh, who happened to be the son of respondent Nos. 1 and 2 and brother of respondent Nos. 3 and 4, was travelling on his motor cycle, the said motor cycle on reaching near Jarai Morh, was hit by a bus bearing registration No. JK02E-8421 that was being driven rashly and negligently by its driver, respondent No. 6 herein. The Bus in question belonged to respondent No. 5 and the same was insured with the appellant/insurance company at the relevant time. As a result of the accident, the deceased had died. It was pleaded by the claimants that the deceased was running a business of electric goods and earning an amount of Rs. 8,000/- per month. His age was stated to be 20 years at the time of death. The claim petition was contested by the appellant/insurance company, whereas owner and driver of the offending vehicle did not contest the claim petition.

3. In the reply to the claim petition, the appellant/Insurance Company pleaded that the driver of the offending vehicle was not holding a valid and effective driving license at the time of the accident but at the same time, it admitted the currency of the policy of insurance of the offending vehicle with it at the time of the accident. On the basis of the pleadings of the parties, the following issues were framed by the learned Tribunal:

(i) "Whether on 27.06.2002 vehicle bearing No. JK02E-8421 driven by its driver non-applicant No. 1 under the employment of non-applicant no. 2 rashly and negligently dashed against the deceased Tejinder Singh (Shanty) who was coming on his motor cycle near Jarai More, Kathua resulting into his death on spot? OPP

(ii) Whether the monthly income of the deceased was Rs. 8000/- at the time of accident, if so, what is its effect on the claim petition? OPP

(iii) Whether the petitioners, heirs of the deceased are entitled to total amount of compensation of Rs. 17.34 lacs if so on what ground from whom? OPP

(iv) Whether the driver of the offending vehicle was not holding a valid and effective driving license at the time of accident, as such non-applicant No. 3 is not liable to pay any compensation to the petitioners? OPR-3

(v) Whether the offending vehicle was being plied in violation of terms and conditions of Registration Certificate, Route Permit and Insurance Certificate as such non-applicant No. 3 is not liable to indemnify by the owner? OPR-3

(vi) Whether the compensation claimed to highly excessive and inflated, as such petitioners are not entitled to such a huge amount of compensation? OPR-3

vii) Relief."

4. After recording the statements of the witnesses produced by the claimants and the Insurance Company, the learned Tribunal came to the conclusion that the accident was caused due to rash and negligent driving of the offending vehicle by its driver-respondent No. 6 herein, which resulted in death of deceased-Tejinder Singh. The learned Tribunal also held that there was no violation of the poli