Divisional Manager, The New India Assurance Co. Ltd. vs P. Laxminarayana and Others

G. Radhakrishna Rao, J.—On 27-7-1985 at Komapally village, an accident took place, due to which one Ravikanth who was travelling along with his friends in a jeep died and his friends received injuries when the jeep driven in a rash and negligent manner dashed against a lorry. A claim for Rs. 1,25,000/- was laid by the parent of the deceased. Having considered the oral and documentary evidence on record, the Tribunal held that the accident was the result of the rash and negligent driving of the jeep by the driver and awarded compensation in a sum of Rs. 72,000/-. He made the Insurance Company liable to pay the compensation amount following the Judgment of the Supreme Court reported in Pushpabai Purshottam Udeshi and Others Vs. Ranjit Ginning and Pressing Co. (P) Ltd. and Another, . Aggrieved, the Insurance Company, the 2nd respondent before the Tribunal, preferred this appeal.

I have been taken by the learned Standing Counsel for the appellant through the Judgment of the lower court. I do not find any reason to disturb the finding of the lower Court with regard to the rash and negligent driving. However, the order making the Insurance Company liable cannot be sustained. In the decision referred to supra, a car belonging to a Company was carrying a passenger along with the manager of the company. The car met with an accident, due to which the passenger died. While holding that the accident was the result of rash and negligent driving of the car by the driver, the Insurance Company was made liable basing on an endorsement on the insurance policy in that regard. However in this case, there is no such endorsement on the insurance policy. The liability of the appellant-Insurance Company is waived. However as the Insurance Company is liable irrespective of the fact whether or not rash and negligent driving was proved and as that aspect was proved in this case, I direct the appellant to pay a sum of Rs. 15,000/- and interest out of the compensation awarded with interest thereon.

The Civil Misc. Appeal is allowed in part. No Costs.