FAO No.1080 of 1993 IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARAYANA AT CHANDIGARH FAO No.1080 of 1993 Date of Decision: February 08, 2011 The Oriental Insurance Co. Ltd. ….Appellant Versus Smt. Krishna Devi widow of L. Sh. Bhagwati Prasad & others ….Respondents CORAM: HON’BLE MR. JUSTICE K. KANNAN Present: Mr. Tajinder Pal Singh, Advocate for the appellant. None for the respondents. *** K. KANNAN, J.(ORAL) 1. The only ground urged in appeal is the limitation of the liability of the insurer who contended that as per terms of Section 95(2)(b), the liability of the insurer was what was provided under the Act namely the Motor Vehicles Act, 1939 and therefore, pleaded that it was only ` 1,50,000/-. 2. The Tribunal had awarded a compensation of ` 1,68,000/-. 3. I have seen through the terms of the policy and it is seen that towards liability to public risk, a basic premium of ` 240/- had been paid and it expressly states that the limit of the amount of the company’s liability in respect of anyone accident shall be such amount as necessary to meet the requirement of the Motor Vehicles Act of 1939. The limit prescribed under the above said provisions for the vehicle involved in the accident which was a goods vehicle in terms of Section 95(2)(a) shall stand restricted to only ` 1,50,000/-. - 1- FAO No.1080 of 1993 4. The appeal by the insurer is allowed making a modification only as regards the limitation of liability against the insurance company in the manner referred to above. The claimants shall have the right to recover the balance against the owner and the driver. However, if the entire amount has been recovered from the insurance company, the insurer shall seek for recovery only against the owner and the driver and not against the claimant. 5. The appeal is allowed in above terms. 08.02.2011 (K. KANNAN) vcgarg JUDGE - 2-