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Judgment
Neelam Sanjiva Reddy, J.—This is an appeal by the third respondent - insurer in O.P.No. 55 of 1987 on the file of the Motor Accidents Claims Tribunals (Additional District Judge), Khammam, against the order dated 8th March, 1989 granting a total compensation of Rs. 2,16,200/-on account of death of one Goparaju Ramireddy in a motor vehicle accident.
Petitioners-claimants filed the above O.P. against the driver, owner and Insurer, who are respondents 1, 2 and 3 respectively in the O.P. The Tribunal, after considering the evidence on record, awarded a total compensation of Rs. 2,16,200/- with interest at 12% per annum from the date of petition i.e. 10-2-1987 till the date of payment with proportionate costs against the driver, owner and insurer jointly and severally.
Learned counsel for the appellant submits that the insurer was liable to pay Rs. 1,50,000/- only as per the Motor Vehicles Act, 1939 and the contract entered into between the parties. Ex.B-1, insurance policy shows that it covers the risk of the owner against the third parties only and the policy was taken in pursuance of the Section 95(2) (a) of the Motor Vehicles Act, 1939 which reads:
"(2) Subject to the proviso to Sub-section (1) a policy of insurance shall cover any liability incurred in respect of any one accident up to the following limits, namely:-
(a) where the vehicle is goods vehicle, a limit of one lakh and fifty thousand rupees in all, including the liabilities, if any, arising under the Workmen''s Compensation Act, 1923), (8 of 1923) in respect of the death of, or bodily injury to, employees (other than the driver), not exceeding six in number, being carried in the vehicle;"
The above provision shows that the liability of the insurer is limited to an extent of Rs. 1,50,000/- only. For the above reasons, I am of the view that the Tribunal erred in allowing compensation beyond that amount.
In the result, the appeal is partly allowed and the liability of the insurer is limited to Rs. 1,50,000/- only. In other respects, the order of the Tribunal is confirmed against all the respondents. Parties to bear their costs in this appeal.