New India Assurance Company Ltd. vs Chano Devi and Others

Gurusharan Sharma, J.—Heard. The Maruti car, bearing registration No. BR-14 C-0262, which was involved in the motor accident dated 28th April, 1996, was duly insured at the relevant time with the two Insurance Companies, namely, (i) The National Insurance Company Ltd. for the period from 10th September, 1995 to 9th September, 1996 and (ii) The New India Assurance Company Ltd. for the period from 26th April, 1996 to 25th April, 1997. Accordingly, the Tribunal held both the Insurance Companies responsible for indemnifying the owner''s liability to pay the compensation amount of Rs. 2,70,000/- with interest to the claimants under the Act to the extent of half and half. The present appeal has been filed by the New India Assurance Company Ltd. denying its liability to indemnify the owner''s liability. We find no substance in this contention for the reason that the appellant cannot escape its liability in terms of the insurance policy, which was issued by it and was effective on the date of the accident. We find no merit in this appeal. It is dismissed. The statutory amount of Rs. 25,000/- deposited by Challan No. J-11 dated 12th April, 2002 by the appellant in this appeal is permitted to be withdrawn on proper verification.