IN THE HIGH COURT OF JUDICATURE AT PATNA MA No.335 of 2003 UNITED INDIA INSURANCE CO.LTD Versus VIJAY KUMAR & ORS ----------- 9/ 21.08.2008 Heard the learned counsel for the appellant United India Insurance Company Ltd., the learned counsel for the respondent no. 1 Vijay Kumar, the claimant. Nobody appears for other respondents, who are owner and principal of Sent Adwards Academy, Haroon Nagar, Patna. This appeal has been directed against the order dated 21.07.2003 passed in Claim Case No. 190 of 2001 by the learned A.D.J.-VI-Cum-Motor Vehicle Accident Claim Tribunal, Patna, whereby and whereunder, he has allowed the petition filed by the Claimant-respondent No. 1 under Section 140 of the M.V. Act, and directed the United India Insurance Company Ltd. to pay Rs. 50,000/- by way of interim compensation to the claimants besides, imposition of penal interest in case of non-payment of amount within stipulated period. The learned counsel for the appellant has submitted that right from the beginning, the Insurance Company has been disowning issuance of insurance cover in respect of erring vehicle for the period for which the accident is said to have been taken causing death of the deceased, and, therefore, Insurance Company is not at all liable to make any payment. The Insurance company can only be held liable if, it is proved that the vehicle concerned was insured by the Insurance Company. - 2 - It has also been submitted that normally Insurance Company does not challenge such issuance of insurance cover but only in exceptional cases it does so, and in that situation, even at this stage, the Insurance Company could not have fastened with this liability of making interim amount, as in final culmination of hearing, it would be very difficult for the Insurance Company to realize that amount from the owner of the vehicle. It has further been submitted that in case owner of the vehicle establishes genuine Insurance cover then, in that situation the Insurance Company would be held liable for the payment of this ad interim compensation along with the interest. He further submits that it is the principal liability of the owner to pay such compensation whether, interim or final and only in case, when it is shown that owner has been indemnified by the insurance cover, the insurance company’s roles comes into play. The learned counsel for the claimant-respondent No. 1 has also been heard, who has submitted that the claimant has only interest in payment of his claim amount, whether it comes from Insurance company or from the owner. But, steps should be taken to ensure his timely payment of interim compensation as well as final award. It has come on the record that the vehicle concerned is also related to an academic institution, so, in that context, the academic institution or owner of the said vehicle whosoever it may be directed to pay the amount to the claimants, and, in case, it is established that vehicle at the relevant time of accident was insured by the appellant- - 3 - Insurance Company, then appellant could be asked to pay the entire amount along with interest as also the amount paid by the owner. Rupees 25,000/- which has been deposited by the appellant-Insurance Company should be returned to the appellant. With the aforesaid observation, this appeal, is, accordingly, disposed of. Sanjeet (Subash Chandra Jha, J.)