The liability of the insurance company under Section 163-A of the Motor Vehicles Act, 1988 is not applicable when the owner of the vehicle is driving and no other vehicle is involved in the accident.

JUDGMENT

Jagmohan Bansal, J. - The appellant-insurance company through the instant appeal is seeking setting aside of award dated 5.3.2013 passed by Motor Accident Claims Tribunal, Narnaul (for short 'Tribunal') whereby learned Tribunal has awarded a sum of Rs. 1,07,000/- to Ram Niwas alongwith interest @ 7.5% per annum.

2. The brief facts emerging from record are that Ram Niwas- respondent-claimant on 25.9.2011 was going from his village Chhapra to Nangal Chaudhary on his motorcycle bearing registration No. HR-35F-1828 and his son Hanuman Singh son of Banwari Lal was pillion rider on the aforesaid motorcycle. A 'neel gai' (wild cow) suddenly came on the road and struck against the aforesaid motorcycle. Resultantly, the respondent fell on the road and sustained injuries on his both legs.

3. The respondent preferred claim petition under Section 163-A of the Motor Vehicles Act, 1988 (for short ' 1988 Act') seeking compensation of Rs. 20 lakhs on account of injuries sustained by him. Learned Tribunal vide award dated 5.3.2013, after considering the fact that respondent has suffered permanent disability to the extent of 8% on account of the aforesaid accident, awarded a sum of Rs. 1,07,000/- alongwith interest @ 7.5% per annum.

4. Learned counsel for the appellant contended that it was respondent who was driving the aforesaid motorcycle and did not meet with accident with any other vehicle. He is owner of the vehicle. The insurance company is liable to make payment if a vehicle meets with an accident with any other vehicle. Section 163-A read with Section 147 of 1988 Act fastens liability on insurance company in case of accident with any other vehicle or in case of loss to third party. The respondent was not third party, thus, he was not covered by Section 163-A of 1988 Act. The rigor of Section 163-A of 1988 Act does not come into play where owner is driving the vehicle and no other vehicle is involved because in the absence of any other vehicle, it would be owner of the vehicle who is responsible for the accident. He further submitted that as per insurance policy, the maximum liability of insurer is Rs. 1,00,000/- and as per GR 36 of Indian Motor Tariff which relates to personal accident cover for owner and driver creates maximum liability of Rs. 1,00,000/- in case of two wheeler. Liability of Rs. 1,00,000/- is maximum liability and it is payable in case of death or 100% permanent disability whereas in the present case, there is 8% permanent disability so, a maximum sum of Rs. 50,000/- could be awarded.

5. Per contra, learned counsel for the respondent contended that as per Section 163-A of the Act, there is no limit of liability and appellant is primarily aggrieved from award of Rs. 1,07,000/- whereas appellant has no objection if a sum of Rs. 1,00,000/- is awarded. He very fairly stated that he has no objection if awarded amount is reduced from Rs. 1,07,000/- to Rs. 1,00,000/-. In support of his contention, he pointed out judgment of this Court passed on 16.8.2022 by a Co-Ordinate Bench of this Court in FAO No. 4837 of 2013 titled as 'National Insurance Company Limited vs. Roopa and others'.

6. I have perused the record and heard arguments of both sides.

7. The dispute in question has been considered time and again by different High Courts as well Hon'ble Supreme Court. In the present case, Section II (Liability Premium Computation) of Policy is relevant which is reproduced alongwith note appended on the bottom of the table:-

Limit of the amount of Company's liability under the Section-II-I(i) in respect of any one accident as per M.V.Act 1988. Limit of the amount of the Company's liability under Section II-I(ii) in respect of any one claim of series of claims arising out of one event: Upto Rs. 100000/-.

8. For the adjudication of issue raised by appellant, it would be apt to look at Sections 147 and 163A of the 1988 Act which are reproduced hereinbelow:-

'147 Requirements of policies and limits of liability. -

(1) In order to comply wit