Case: New India Assurance Co. Ltd Vs. Kendra Devi

M.A.C. No.4 of 1994, before the Motor Accident Claims Tribunal, Uttarkashi, claiming compensation of Rs.4,67,000/on account of death of her husband in a motor vehicle accident. According to respondent No.1 herein, her husband, Prakash Singh Parmar, was the owner and driver of Taxi No. UMX 491. On 10.11.1993 while her husband was going from Matali to Uttarkashi, he lost control over the vehicle and met with an accident due to which the vehicle rolled into the river Bhagirathi near Barrthi. Her husband sustained fatal injuries in the accident and succumbed to the injuries at the spot. According to respondent No.1, at the time of the accident her husband was earning Rs.3000/per month.4) Before the Tribunal, the appellant, New India Assurance Co. Ltd. contended that the vehicle was insured only for five persons whereas it was carrying eight passengers, therefore, the owner and driver of the vehicle violated the terms and conditions of the Insurance Policy, in view of the same, they are not liable to pay compensation to the claimants. The Tribunal, based on the materials before it, after finding that the driver of the vehicle had valid licence and taking note of the age of the deceased i.e., 50 years, by applying multiplier of ten, awarded a total compensation of Rs.1,25,000/along with interest @ 12%. Aggrieved by the said award, the Insurance Company filed an appeal before the High Court. The High Court, after finding no infirmity and illegality in the order passed by the Motor Accident Claims Tribunal, dismissed the appeal and the review application filed by the Insurance Company was also dismissed. Against the said orders of the High Court, the New India Assurance Company Ltd. filed the present appeal.

Court's reasoning:
7) We have carefully considered the above provision as well the decision of this Court. Taking note of the peculiar fact that the claimants have lost their only breadwinner, we are not inclined to interfere with the concurrent orders of the Tribunal as well as the High Court.