Brief facts relevant for the purposes of this appeal are that one Arun Kumar Nema, son of Late Shri B. L. Nema, aged about 30 years was Assistant Professor in Jawaharlal Nehru Krishi Vishwa Vidhyalaya, Jabalpur, at a salary of Rs. 3585/- per month. While driving his Scooter on 1-12-1989, he was hit by a Tempo bearing registration No. MBK-7717 at about 9.30 a.m. He was immediately taken to Medical College Hospital, Jabalpur, where he died on 3-12-1989. His mother and brother submitted a Claim Petition for compensation under Section 166 of the Motor Vehicles Act, 1988, with allegation that the offending tempo was being driven by respondent No. 3 in a rash and negligent manner. It was owned by respondent No.4 and was further transferred to respondent No.5. It was stated to be insured with the appellant Insurance Company.

2. Appellant (Insurance Company) denied its liability on the ground that the insurance policy was obtained subsequent to the accident by fraudulent misrepresentation.

3. Claims Tribunal vide its award dated 7 -5-1996 allowed the claim to the tune of Rs. 5.86.000/- with interest @ 12% per annum. Liability was also fastened on the Insurance Company in joint an