Liability of the Insurance Company for compensation in accidents involving motor vehicles or their attached equipment.

S.K. Awasthi, J.

1. This judgment shall govern the disposal of Miscellaneous Appeal No.1208/2005 and Miscellaneous Appeal No.1217/2005.

2. Miscellaneous Appeal No.1208/2005 is filed by the appellant/claimant under Section 173 of the Motor Vehicles Act, 1988 against an award dated 31.08.2005 passed by the learned Additional Motor Accident Claims Tribunal (for brevity, the ‘Tribunal’) Sabalgarh, District Morena in Claim Case No.1/2005. By the impugned award, the Claims Tribunal has awarded a total of Rs. 3,21,300/- with interest to the appellant/claimant by way of compensation for the injuries which are sustained in an accident occurred on 29.11.2004.

3. The appellant/claimant filed a claim application under Section 166 of Motor Vehicle Act, 1988 before the Additional Motor Accident Claims Tribunal, Sabalgarh, District Morena for compensation on account of permanent disability. The contextual facts are that on 29.11.2004 at about 11:00 AM, on the request of respondent No.2 Dilip Sharma, the appellant was tightening screw of the cutter attached with the tractor owned by respondent No.1 Pradeep Kumar Sharma. The respondent No.2 Dilip Sharma, all of sudden, started the tractor and put the gear of the tractor, as a result of which the cutter started functioning and the right hand of the appellant got amputated from the shoulder and he also sustained injuries in the ribs. The matter was reported to the Police Station Kailaras at Crime No.284/2004 and the case was registered against the respondent No.2 Dilip Sharma for the offences under Sections 279 and 337 IPC. It was averred that before accident the appellant was working as a Skilled Labourer and as a Milk Vendor by which he was earning Rs. 6000/- per month and due to accident, he has become permanent disabled and can not earn his livelihood. The appellant has claimed the amount of Rs. 14,16,000/- for compensation.

4. The claim petition was contested on various grounds denying the factual aspect also. The Insurer also contested the claim inter alia on the ground that the Insurance Company is not liable to pay any amount of compensation because the vehicle was being used in contravention of the policy conditions and at the time of accident, the driver of the insured tractor was not having valid and effective driving license. After adducing the evidence the Claims Tribunal has awarded the compensation of Rs. 3,21,300/- to the appellant/claimant. The appellant challenge quantum of compensation and prayed for its enhancement. The Insurance Company has filed cross appeal disputing its liability to pay compensation.

5. Learned counsel for the appellant/claimant submitted that the Tribunal has failed to award adequate amount in view of grevious injuries sustained by the claimant. The Tribunal committed an error in assessing the income of the appellant @ Rs. 2000/- per month whereas the appellant has categorically stated that he was working as a Skilled Labourer and Milk Vendor by which he was earning Rs. 6,000/- but the Claims Tribunal did not consider the same. Therefore, it is prayed that the amount of compensation may be enhanced to the tune of Rs. 4,95,000/- with the interest @ 12% per annum from the date of application.

6. Miscellaneous Appeal No.1217/2005 has been filed by the Insurance Company claiming that learned Tribunal has erred in holding that the alleged accident has occurred arising out of the use of the Motor Vehicle as well as holding the cutter a part of the tractor. The accident caused out of use of alone motor of the tractor is not covered under the Motor Vehicle Act as well as Insurance Policy. Neither the cutter was insured nor any premium was charged for covering the damage arises form the use of the cutter by fitting it with tractor beyond the policy conditions. The award assessed by the learned Tribunal is on higher side and also against the evidence bro