ORDER :

Amar Nath (Kesharwani), J.

Appellant-Insurance Company has preferred this appeal under section 173 of the MOTOR VEHICLES ACT , 1988 being aggrieved by the award dated 22-12-2010 passed by learned Motor Accidents Claims Tribunal, Hoshangabad (M.P.) in MACC No. 16/2010, whereby learned Tribunal has awarded Rs.2,50,000/- (Rupees Two Lakh Fifty Thousand only) with interest of 6% per annum from the date of filing of claim petition and thereafter, if the payment is not made within two months then the insurance company shall be liable to pay interest @7% per annum.

2. Brief facts of the case are that the son of respondent Nos. 1 and 2 namely Raja aged about 8 years had died in an accident dated 28-9-2009 by a vehicle (Jeep) bearing Registration No. MP-49-0438. The offending vehicle was being driven in rash and negligent manner by respondent No. 4 as a result of which Raja was died on the spot. Report of the incident was lodged at Police Station – Hoshangabad. After investigation, challan was filed against the respondent No. 4 under section 304-A of the INDIAN PENAL CODE and a criminal case was registered before the Court of Chief Judicial Magistrate, Hoshangabad (M.P.) having jurisdiction of the case. Being legal representatives of deceased Raja, respondent Nos. 1 and 2 have filed the claim petition under section 166 read with section 140 of the Motor Vehicle Act before the Motor Accident Claims Tribunal, Hoshangabad claiming Rs.16,50,000/- (Rupees Sixteen Lakh Fifty Thousand) as a compensation where it was alleged that at the time of accident the deceased was a healthy and intelligent child who after his education could have helped in upbringing the financial condition of his family in the future, hence, prayed for award as claimed in the petition.

3. Respondent Nos. 3 and 4 have appeared before the Claim Tribunal and denied the pleadings mentioned in the claim petition and submitted that offending vehicle was insured with the appellant and pleaded that driver was not driving the offending vehicle in a rash and negligent manner and accident did not occur due to his act or action and the offending vehicle was falsely implicated in the case. It is also pleaded that in the First Information Report which was lodged on the same day, registration number of offending vehicle was not mentioned in the FIR. Hence, respondent Nos. 3 and 4 are not liable to pay any compensation to the respondent Nos. 1 and 2. It is further pleaded that the respondent No. 3 is the registered owner of the offending vehicle which was insured with the appellant-Insurance Company and respondent No. 4 was holding a valid driving license at the time of incident and if the learned Claims Tribunal has come to the conclusion that the alleged accident took place with the vehicle bearing registration No. MP-49-0438 and was driven by the respondent No. 4, and awarded the compensation amount in favour of the claimants then appellant-Insurance Company will be liable to satisfy the award.

4. Appellant-Insurance Company in their written statement has denied the averments mentioned in the claim petition and pleaded that the information regarding accident was not provided by the owner of offending vehicle respondent No. 3 to the Insurance Company and at the time of incident respondent No. 4 had no valid and effective driving license to drive the offending vehicle. Claimants have falsely implicated the offending vehicle in the case in conspiracy with respondent Nos. 3 and 4. Hence,