FAO No.344 of 1989 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.344 of 1989 DATE OF DECISION: February 3, 2011 THE NEW INDIA ASSURANCE CO. LTD. ...APPELLANT VERSUS MRS. BASANT JAIN AND OTHERS ...RESPONDENTS CORAM: HON'BLE MR. JUSTICE K.KANNAN. 1. Whether reporters of local papers may be allowed to see the judgement? Yes/No 2. To be referred to the reporters or not? Yes/No 3. Whether the judgement should be reported in the digest? Yes/No ---- PRESENT: MR. L.M. SURI, SR. ADVOCATE WITH MR. NEERAJ KHANNA, ADVOCATE FOR THE APPELLANT. NONE FOR THE RESPONDENTS. K.KANNAN, J.(ORAL) 1. The only point urged in the appeal by the appellant-insurer is that by the terms of the policy taken at Motor Vehicles Act, 1939, the liability of the insurer was restricted to `1,50,000/- as per the terms mentioned in Section 95(2)(b). The policy has been produced before the Tribunal, but the Tribunal has observed that it was an unrestricted liability. I have seen the terms of the policy and a premium of `240/- had been paid for third party and the limitation of liability is specifically stated to be as necessary to meet the requirements unde the Motor Vehicles Act, 1939. This must be understood, therefore, an Act only policy with the restriction as provided by the terms of the statute itself. The amount assessed by the Tribunal, therefore, shall be claimable by the claimant in excess of `1,50,000/- against the owner-insured only. The liability on the insurer FAO No.344 of 1989 -2- shall stand restricted to `1,50,000/- with interest as awarded by the Tribunal. 2. The award is modified and the appeal is allowed to the above extent. February 3, 2011 (K.KANNAN) Gulati JUDGE