The main legal point established in the judgment is the interpretation of compliance with the insurance policy under the Motor Vehicles Act and the calculation of compensation based on relevant legal precedents.

Heard Shri T. A. Khan, counsel for the appellant and Shri Pooran Singh Rawat, counsel for the respondent no. 1.

2. This is insurers appeal.

3. By the present appeal, filed under Section 173 of Motor Vehicles Act, 1988, the appellant has prayed for setting aside the judgment and award dated 10-4-2006 passed by the Motor Accident Claims Tri bunal, Nainital in M. A. C. P. No. 60 of 2005.

4. Briefly stated, a motor accident claim petition no. 60 of 2005 was filed under Section 140 and 166 of Motor Ve hicles Act for compensation of Rs. 10,00,000/-on account of death of Navin Chandra Kergati (hereinafter referred to as the deceased ). According to the claim ant, on 22-3-2004 when the deceased was traveling by Truck No. UA-04a-7437 alongwith goods, at about 8 p. m. the said truck fell down in the ditch due to rash and negligent driving of the Truck by its driver. The deceased sustained injuries and succumbed to injuries. The deceased was posted as constable in the Uttaranchal Police Department and was getting salary of Rs. 56731- per month. The deceased was having sound health. The claimant was dependent on the deceased. The claimant has suffered mental agony on account of the death of the deceased. The claimant has claimed a sum of Rs. 10,00,000/-towards compensation.

5. A written statement has been filed on behalf of the owner of the Truck in question wherein the accident in question has been admitted. It has been admitted that the deceased died in the accident in question. It has been denied that the ve hicle in question was being driven rashly and negligently. It has also been submit ted that in the said accident, four men have died including driver and cleaner of the truck in question and the report of the said accident was lodged in P. S. Bhatronjkhan. It has been submitted that the truck was also damaged in the said accident and the owner has got the com pensation on account of own damages from the New India Assurance Company Ltd. The Truck in

question was insured with the New India Assurance Company Ltd. and the driver was having a valid driv ing license. The insurance company is li able to indemnify the claim.

6. The New India Assurance Com pany Ltd. has filed a written statement denying the averments contained in the claim petition. It has been submitted that the Truck in question was not being driven in accordance with the insurance policy. The claim petition is liable to be dismissed.

7. On the pleadings of the parties, the claims tribunal has framed the following issues :

"1. As to whether on 22-3-2004 the Truck No U. A. 04-7437 was not being driven in accordance with the insurance policy ? If yes, its effect ?

2. To what relief the claimants are entitled to.

8. The claimant has examined Parvati Devi as P. W. 1 and Bhunwan Chandra Joshi as P. W. 2.

9. Towards the documentary evi dence, the claimant has produced 5 docu ments as per list 5 ga and the salary cer tificate of the deceased as per list 19 ga. The defendant no. 1 has produced three documents as per list 14 ga and the copy of judgment passed in M. A. C. 88 of 2004 as per list 15 ga.

10. While deciding as to whether on 22-3-2004 the Truck No. U. A. 04-7437 was not being driven in accordance with the insurance policy, the claims tribunal has taken into consideration the fact that the insurance company has given the own damages claim to the Truck owner which proves that the insurance company has admitted that the truck was being driven in accordance with the insurance policy. The claims tribunal, therefore, has re corded the finding that the truck in ques tion was being driven in accordance with the insurance policy.

11. While deciding with regard to quantum of compensation, the claims tribunal has taken into consideration the net income of the deceased to the extent of Rs. 4025/- per month which was worked out to the extent of Rs. 48,000/- per annum after rounding off. After deducting l/3rd of the same, the annual dependency was worked out to the extent of Rs. 32,000/

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