BHAWANI SINGH, C. J.

( 1 ) THIS appeal is directed against the award dated 24. 12. 99 passed by the Additional Motor Accidents claims Tribunal, Surajpur, District Sarguja in Claim Case No. 87 of 1998.

( 2 ) THE accident took place on 1 5. 1998 in which Budharobai died and allegation is that the accident took place due to rash and negligent driving of the motor cycle by Ajay Kumar. Defence taken is that the vehicle was not insured with the appellant national Insurance Co. Ltd. at the relevant time; therefore, there was no liability of the appellant to pay the compensation.

( 3 ) THE Tribunal on evidence adduced before it came to the conclusion that the vehicle was insured since the amount of premium had been paid to one B. N. Khare, inspector/agent of the appellant two days before the accident. Therefore the Tribunal has awarded compensation of Rs. 1,20,000 to the claimants with interest at the rate of 12 per cent per annum from the date of application till the date of payment.

( 4 ) MR. S. K. Rao, the learned counsel appearing for the appellant contends that there is no contract of insurance between the parties, therefore, the appellant is not liable to suffer the liability. To sub

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