The insurer is liable to pay compensation under S.92-A of the Motor Vehicles Act to the extent of the policy cover, without inquiring as to whether the amount awarded is under S.92-A or otherwise.

D.S.TEWATIA, J.

1. On 17-6-1983 at about 4.45 P.M. one Bishan Dass while going on the road dividing Sectors 16 and 23 met with an accident with Motor Cycle No. CHU-6771 which struck against him from behind and as a result of the injuries that he sustained, he died in the P.G.I. on 19-6-1983. Smt. Beasa Devi widow of Bishan Dass and his two daughters Miss Anita and Miss Sunita put in their claim for a sum of Rs. 3 lacs with a further prayer that a sum of Rs. 15,000.00 be immediately awarded to them under S.92-A read with S.92-B of the Motor Vehicles Act (hereinafter referred to as the Act) under no fault liability. To the claim petition besides the owner respondent No. 4 Gurdev Singh the Oriental Fire and General Insurance Co. Ltd. (hereinafter referred to as the Insurance Company), was also impleaded as one of the respondents. The owner of the offending vehicle admitted the accident whereupon the Claims Tribunal ordered payment of Rs. 15,000.00 by the Insurance Company vide its order dated 23-2-1984 under S.92-A of the Act, even though the Insurance Company is said to have taken up the stand that it was not liable to pay that amount. The main case was adjourned to 17-4-1984 and then to 30-4-1984, on which date the Insurance Company filed its written statement, therein taking the objection that the vehicle was being driven by one Ajmer Singh, who did not have valid driving licence as he was in possession of the learning licence valid only in Punjab and not in Chandigarh and, therefore, the Company was not liable to pay any compensation. The Insurance Company has impugned the interim award dated 23-2-1984 in this Court.

2. Mr. Vijay Gandhi, counsel for the appellant Insurance Company, has canvassed before us that under S.92-A, only the owner is liable to pay the sum envisaged under that provision and not the Insurer Company. In the alternative, the learned counsel urged that, in any case, the Insurance Company as insurer was liable to pay only in the event if the defence available to it under S.96 of the Act is not raised or if raised not established by the Insurance Company.

3. The question of law raised in the appeal appears to be of considerable merit and therefore, appeal was admitted to the Division Bench and that is how, it is before us.

4. Before adverting to the rival contentions advanced on behalf of the appellant and the respondent, the relevant provisions of statute deserve noticing at the threshold. S.92-A, which provides for no fault liability is in the following terms: -

"92-A. Liability of pay compensation in certain cases on the principle of no fault. (1) Where the death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section.

(2) The amount of compensation which shall be payable under sub-sec.(1) in respect of the death of any person shall be a fixed sum of fifteen thousand rupees and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall be a fixed sum of seven thousand five hundred rupees.

(3) In any claim for compensation under sub-s.(1), the claimant shall not be required to plead and establish that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act, neglect or default of the owner or owners of the vehicle or vehicles concerned or of any other person.

(4) A claim for compensation under subsection (1) shall not be defeated by reason of any wrongful act, neglect or default of the person in respect of whose death or permanent disablement the claim has been made nor shall the quantum of compensation recoverable in respect of such death or permanent disablement be reduced on the basis of