New India Assurance Co. Ltd and Others vs Sheila Devi and Others

G.C. Mittal, C.J.—A cyclist was run over by a truck. As a result of injuries sustained in the accident the cyclist died. His widow, minor child and parents filed an application for a claim before the Motor Accidents Claims Tribunal and the Tribunal awarded Rs. 24,800/-. However, the liability of the Assurance Company was limited to Rs. 20,000/-. The claimants came up to this Court in appeal and a learned Single Judge by a well considered judgment dated 14th October, 1988 enhanced the amount to Rs. 96,000/-, besides awarding interest after coming to the conclusion that out of the monthly income of Rs. 500/-he was contributing Rs.400/-towards his family and applied the multiplier of 20. There is no discussion in the judgment of the learned Single Judge about the limited liability of the Assurance Company. However, the Assurance Company, was made liable for payment of the entire amount.

This appeal is by the Assurance Company as also by the insured. On consideration of the matter we find no ground to interfere with the decision of the earned Single Judge. As regards the limited liability, for third party claims there is no limit in the Motor Vehicles Act for awarding compensation. Accordingly the appeal is dismissed with costs.