THE HON’BLE SRI JUSTICE R.KANTHA RAO C.M.A.NO.942 OF 2001 DT.04.03.2010 Between: The Manager, United India Insurance Company Ltd., Tadepalligudem, W.G.District and another. …………..Appellant Vs. Dr.Kadali Satyavaraprasad and two others. ………………Respondents JUDGMENT: 1) This appeal is filed by the United India Insurance Company Limited, challenging the award passed in O.P.No.242 of 1981 dated 13.09.1994 by the Motor Accidents Claims Tribunal & Additional District Judge, West Godavari, Eluru. 2) Respondent No.1/claimant filed a claim petition before the Motor Accidents Claims Tribunal, seeking compensation of Rs.5,000/- in respect of the damage caused to the scooter, which was hit by a lorry bearing No.5758, while the claimant and another were proceeding on the scooter from Satrampadu towards new bus-stand. The Tribunal gave a finding that the appellant-Insurance Company is liable to pay the compensation since the said offending vehicle was insured with the appellant and the policy was in force. The said finding was questioned by the Insurance Company in this appeal, since the Tribunal basing on the evidence of PWs.1 to 3 recorded a finding that the driver of the lorry alone is at fault. 3) Basing on the defence taken by the Insurance Company, it appears that when the cyclist was passing 10 yards ahead, the driver of the lorry though applied brakes, could not stop the lorry immediately and dashed against the scooterist. The learned Tribunal also took into consideration the admissions made by RW-1. The finding arrived at by the Tribunal being based on the evidence, I do not find any reason to interfere with the said order and the same is liable to be confirmed. However, the learned counsel appearing for the Insurance Company has not laid much stress on this issue but questioned the correctness of the finding arrived at by the Tribunal in awarding exemplary costs of Rs.2,000/- and directing the concerned officials of the Insurance Company to pay the same on the ground that they did not take appropriate steps to settle the matter and dragged the claimant to the litigation. 4) As already contended by the learned counsel appearing for the appellant, it is always the responsibility of the officials to get the claim settled between the first respondent/claimant and the Insurance Company. For settling the claims, the Insurance Company has got its norms. The manner in which the exemplary costs were awarded by the Tribunal is erroneous and improper and in excess of its jurisdiction. Apparently, there are no valid reasons for imposing exemplary costs and the said finding is liable to be set aside and it is accordingly set aside. 5) In the result, the appeal is partly allowed. The award of the Tribunal granting compensation of Rs.5,000/- to the first respondent towards damage caused to the vehicle is confirmed and with regard to the finding that the Insurance Company shall pay exemplary costs of Rs.2,000/- deducting from the salary of the officer concerned for not settling the claim of respondent No.1 is set aside and the said sum of Rs.2,000/- if already paid by the officer concerned has to be refunded to him. No order as to costs. _________________ R.KANTHA RAO J., Dt.04.03.2010 tjs