Basheer Ahmed vs Sumathi and Another

Sengottuvelan, J.—This civil miscellaneous appeal is filed against the order of the Motor Accidents Claims Tribunal and District Judge of East Thanjavur at Nagapatinam, in M.A.C.O.P. No. 48 of 1979. The facts of the case are briefly, as follows:

Minor Sumathi, the first Respondent herein, was injured by an accident in which the scooter, PYS 8719 driven by the Appellant is involved. The first Respondent filed the abovesaid M.A.C.O.P. claiming compensation of Rs. 15,000/- for the injuries sustained. The Motor Accidents Claims Tribunal, on the evidence adduced before it, came to the conclusion that the first Respondent will be entitled to a sum of Rs. 10,000/- by way of damages. The said finding is not challenged before me. Having arrived at the finding that the first Respondent is entitled to damages of Rs. 10,000/- , the Tribunal proceeded to apportion the amount between the Appellant and the insurance company, as Rs. 6,000/- and Rs. 4,000/- respectively. It is against this order of apportionment this civil miscellaneous appeal is filed.

Mr. Thirugnanam, Learned Counsel, appearing for the Appellant, contends that as per the terms of the insurance policy marked as Exh. B 2, as well as u/s 95(2)(c) of the Motor Vehicles Act, the insurance company is liable to indemnify the Appellant in respect of the damages arising out of the claims of third parties. The policy of insurance is a comprehensive one relating to the damages to the vehicle as well as third party liability as per the provisions of Section 95(2)(c). In so far as such a policy is concerned, the liability of the insurance company as far as the general insurance is concerned is upto the value of the vehicle, whereas in so far as liability to third party is concerned, the liability of the insurance company is unlimited. The Motor Accidents Claims Tribunal, without reference to the terms of the policy, has come to the conclusion that the liability of the insurance company will have to be limited to Rs. 4,000/- since the value of the vehicle is given in the insurance policy as Rs. 4,000/- . The value of the vehicle can be the criterion only in respect of claims with reference to damage to the vehicle. Hence the Motor Accidents Claims Tribunal is clearly in error in concluding that the liability of the insurance company is limited to Rs. 4,000/- . The insurance company is liable to indemnify the Appellant in respect of the entire amount of compensation awarded to the first Respondent. Hence this appeal is allowed and the entire amount of compensation awarded by the Tribunal is payable by the Appellant and the second Respondent is directed to pay the amount in the first instance. There will be no order as to costs.