The judgment establishes the principle that the interpretation of insurance policy clauses and the scope of coverage are crucial in determining liability for compensation payment.

1. This Appeal is directed against the judgment and award dated 25.04.2013 passed by the learned Member Motor Accident Claims Tribunal, Court No.4, West Tripura, Agartala in Case No. T.S. (MAC) 292/2010, wherein the learned Tribunal has fastened the liability of payment of compensation upon the appellant-Insurance Company.

2. Being aggrieved by the said judgment and award the appellant-Oriental Insurance Company has preferred this appeal on the ground that the learned Tribunal has committed serious error in mis-interpreting and mis-construing and also mis-reading the terms and conditions laid down in the policy.

3. Mr. P. Gautam, learned counsel appearing on behalf of the appellant has placed reliance upon the policy document to which Mr. S. Lodh, learned counsel appearing on behalf of the insured owner did not raise any objection. That means policy document is undisputed.

Learned counsel for the appellant at the very outset, drawing my attention to the policy document submits that the vehicle involved in the accident was a goods carrying vehicle having sitting capacity of 1+1 including the driver. It is worth to mention that the vehicle is mini three wheeler truck and the learned counsel submits that the Court should take note of “limit of liability clause” of the said policy document.

The said clause is reproduced in extenso:-

“Limit of liability

Under Section II-1(i) in respect of any one accident: as per Motor Vehicles Act, 1988.

Under Section II-1 in respect of any one claim or series off claims arising out of one event is Rs.6000

P.A Cover under Section III for Owner-Driver (CSI) : Rs.20000

Insured's Declared Value (IDV)

For the Vehicle	For Trailers	Non Electrical Accessories	Electrical Accessories	Value of CNG LPG Kit	Total Value
1,00.000				1,00,000

SCHEDULE OF PREMIUM

A OWN DAMAGE		B. LIABILITY
BASIC OD COVER	1,812.00	ADD: BASIC TP COVER	5,580.00
BASIC OD TOTAL	1,812.00	LESS : TPPD COVER GR39A	200
OD TOTAL	1,812.00	BASIC TP TOTAL	5,380.00
LESS : NO CLAIM BONUS -GR27	453.00	ADD:PA FOR OWNER DRIVER -GR36A	100
MOTOR TOTAL OD	1,359.00	ADD;LL PAID DRIVER CONDUCTOR, CLEANER -IMT-40	25
		TP TOTAL	5,505.00
		TOTAL PREMIUM	6,864.00
		STAMP DUTY	0.5
		ADD : SERVICE TAX	707
		TOTAL AMOUNT	7,571.00”

4. It is pointed out that an additional premium of Rs. 25/- to give coverage of the paid driver, conductor or cleaner/ IMT-40. It necessitates the Court to look at clause IMT-40 which is reproduced below:-

“IMT 40 Legal Liability to paid driver and/or conductor and/or cleaner employed in connection with the operation of Motor vehicles (For buses, taxis and motorized three/four wheelers under commercial vehicles tariff)

In consideration of the payment off an additional premium, it is hereby understood and agreed that notwithstanding anything contained herein to the contrary the insurer shall indemnify insured against his legal liability under the Workmen's Compensation Act. 1923 and subsequent amendments of that Act prior to the date of this endorsement, the Fatal Accidents Acts, 1855 or at Common Law in respect of personal injury to any paid driver and/or conductor and/or cleaner whilst engaged in the service of the insured in such occupation in connection with the vehicle insured and will in addition be responsible for all costs and expenses incurred with its written Consent.

The premium to be calculated and paid while taking insurance of the vehicle concurred at the rate of Rs. 25/- per driver and/or conductor and/or cleaner.”

Provided always that:-

(1)....................................

(2)..................................

(3) The insured shall keep a record of the name of each driver, cleaner, conductor or person employed in loading and/or unloading and the amount of wages salary and