Being aggrieved by the order of the Tribunal/Sub Court, Coimbatore in M.C.O.P. No. 1219 of 1996, awarding compensation of Rs. 3,30,000/-, Insurance Company has preferred this appeal.

2. Brief facts as set out in the claim petition are as follows : Deceased Kannan Kumar was employed in Selzar Electronics as Executive Secretary and he was getting monthly salary of Rs. 5,000/-. On 11.5.1995, deceased Kannan Kumar was travelling as occupant in Tata Estate Car bearing registration no. KL 9B 707 belonging to the fourth respondent Salzer Electronics Ltd. Car was driven by one Babu Gopalakrishnan. At about 11.30 p.m. while the said car was proceeding near Mettupalayam Road near Madras Oil Company, the car was turned upside and rolled all of a sudden. Due to the accident, deceased Kannan Kumar sustained fatal injuries and he became unconscious and was immediately taken to K.R.H. Hospital, from where he was shifted to Ramakrishna Hospital, Coimbatore. The deceased Kannan Kumar succumbed to the injuries. Alleging that the accident was due to rash and negligent driving of the car driver, mother, brother and unmarried sister of the deceased Kannan Kumar have filed Claim Petition claiming compensation of Rs. 8,00,000/-.

3. Opposing the Claim Petition, Insurance Company has filed counter stating that at the time of accident, the driver did not have valid driving licence and therefore, the Insurance Company is absolved of its legal liability. The Insurance Company has also denied the income of the deceased. The Insurance Company had also taken the stand that the deceased Kannan Kumar was employed in Salzer Group of Companies and deceased being an employee of the Insured, as per ‘Personal Accident Claim‘ Insurance Company has already paid Rs. 2,00,000/- and no further amount need be paid as compensation.

4. Before the Tribunal, mother of deceased examined herself as PW-1. Eye witness was examined as PW-2. Authorized representative of Salzer Textiles was examined as PW-3, who has produced Exhibit P-6 Salary Certificate to show that the deceased was drawing salary of Rs. 5,000/- p.m. Officer of Insurance Company was examined as RW-1. Upon consideration of oral and documentary evidence, the Tribunal held that both Salzer Textiles and Salzer Electronics are different companies. Relying upon Orissa Cooperative Insurance Society Ltd. v. Santosh Gupta and Others Orissa Cooperative Insurance Society Ltd. v. Santosh Gupta and Others Orissa Cooperative Insurance Society Ltd. v. Santosh Gupta and Others , II 1997 ACC 276 the Tribunal held that the contract of insurance would also include a gratuitous passenger in the car and Insurance Company is liable to indemnify the Insured. Taking monthly income as Rs. 3,500/- and applying multiplier 11, the Tribunal has awarded a total compensation of Rs. 3,30,000/-.

5. Assailing the impugned award, the learned counsel for the Appellant Insurance Company has submitted that the deceased was carried in a private car owned and Insured by the fourth Respondent Employer Group and deceased being under contract of employment, risk to such employee was excluded under Section II of Exhibit R-1 Comprehensive Insurance Policy. It was further submitted that if the employee is not workman under the Workmen Compensation Act the insurer was not liable for the deceased who was carried in the vehicle in the course of employment of fourth Respondent. The learned counsel for the Appellant further argued that in any event, under ‘Personal Accident Cover‘ a sum of Rs.2,00,000/- was already paid and the same is to be deducted if the Court comes to the conclusion that compensation is payable to the claimants.

6. In response, the learned counsel for the claimants submitted that the deceased being an occupant in the car, claimants are entitled to compensation. Placing reliance upon Karnataka National Insurance Co. Ltd. v. Sarojini (since deceased) by L. Rs. and Others Karnataka National Insurance Co. Ltd. v. Sarojini (since dece