THE HON’BLE SRI JUSTICE V.V.S. RAO CIVIL MISCELLANEOUS APPEAL No.2415 of 1998 16.11.2009 Between: Mahmooda Begum, W/o.Md.Fazil And others … Appellants and Divisional Manager, New India Assurance Company Li8mited, Basheerbagh, Hyderabad And others … Respondents THE HON’BLE SRI JUSTICE V.V.S. RAO CIVIL MISCELLANEOUS APPEAL No.2415 of 1998 ORDER: The wife and nine children of one Md. Fazil filed instant appeal feeling aggrieved by the award dated 30.4.1993 passed by the Motor Accidents Claims Tribunal-cum-Additional Chief Judge, City Civil Court, Hyderabad, in O.P.No.349 of 1991. Md. Fazil, who was aged 40 years, with his wife–first appellant; was going on Luna moped. When they reached Yakutpura Function Hall, Matador van bearing No.GTS 7478 came in the opposite direction and dashed against Luna moped. First appellant and her husband fell down and received injuries. Md.Fazil died subsequently while undergoing treatment in Osmania General Hospital. Alleging that he was earning Rs.2,000/- per month and that the accident occurred due to rash and negligent driving of driver of Matador van, they filed O.P. claiming Rs.1,00,000/- as compensation. The O.P. was opposed by insurer – first respondent herein; alleging contributory negligence on the part of deceased and also disputing quantum of compensation. During the enquiry, claimants examined P.Ws.1 to 3 and marked Exs.A1 to A3. The insurer marked Ex.B1 policy. Considering the evidence on record, learned Tribunal determined compensation payable to claimants at Rs.1,44,000/-. However, relying on Ex.B1 policy, liability of insurer was limited to Rs.50,000/-. Aggrieved thereby present appeal is filed. It is now well settled that under the Act policy, the risk of third party is unlimited, and therefore, it cannot be restricted to Rs.50,000/- only (see Motor Owners' Insurance Co. Ltd. v Jadavji Keshavji Modi[1]). In this case, without bestowing elaborate consideration, learned Tribunal correctly came to the conclusion that the multiplicand and multiplier but restricted compensation to Rs.50,000/-. Having regard to the settled law that liability of insurer in respect of third party risk cannot be restricted to any limit, the appeal is allowed. The award is modified holding that appellants/claimants shall be entitled to an amount of Rs.1,00,000/-, which shall be payable with interest at 6% per annum (on enhanced amount of Rs.50,000/-) from the date of the award passed by the Tribunal. The civil miscellaneous appeal, with the above observations, is accordingly allowed. _____________ (V.V.S.RAO, J) November 16, 2009 YS [1] AIR 1981 SC 2059: 1981 ACJ 507