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New India Assurance Company ... vs Anil Prakash Naik And Ors.

High Court Of Judicature at Allahabad|11 December, 2002

JUDGMENT / ORDER

JUDGMENT M.P. Singh, J.
1. Heard the learned Counsel for the insurer-appellant. The insurer-appellant feels aggrieved by the award of an amount of Rs. 7,72,500/'- as compensation to the claimants on account of the untimely death of Navneet Naik, son of the claimants, aged about 20 years in an accident involving the offending motor vehicle, a tanker bearing registration No. M.P. 23 DA/1239.
2. The learned Counsel for the insurer-appellant has urged that taking into consideration the age of the deceased, the amount of compensation awarded by the Tribunal is excessive.
3. In this connection, suffice it to say that there is nothing to indicate that the insurer-appellant had obtained the requisite permission envisaged under Section 170 of the Motor Vehicles Act and in that view of the matter, it can only raise the statutory defences available to it under the provisions of the aforesaid Act.
4. It has next been contended by the learned Counsel for the appellant that there was a breach of terms and conditions subject to which the insurance policy had been issued covering the risk. The contention is that the offending motor vehicle was being driven by a driver who had no valid licence.
5. Be what it may, so far as the statutory liability of the insurer-appellant contemplated under the provisions of the Motor Vehicles Act in the matter relating to the payment of just compensation determined by the Motor Accident Claims Tribunal is concerned, the mere fact that there was a breach of the terms and conditions subject to which the insurance policy had been issued cannot have the effect of exonerating the insurer of his statutory liability cast upon him in this regard to pay the amount of the third party.
6. The deceased Navneet Naik was a Government servant earning Rs. 6,000/- per month. The Tribunal rightly adopted a multiplier of 16 to his annual income assessed at Rs. 72,000/-. Thus the total amount of Rs. 7,68,000/- including the other expenses of Rs. 4,500/- comes to Rs. 7,72,500/- awarded as compensation alongwith the rate of interest of 8% per annum. The amount of compensation awarded was a just and not excessive.
7. Taking into consideration the totality of the circumstances as brought on record, this appeal is totally devoid of merits, which deserves to be and is hereby dismissed in limine.
8. As prayed, the amount of Rs. 25,000/- deposited in this Court by the insurer-appellant under Section 173 of the Motor Vehicles Act be remitted to the Motor Accident Claims Tribunal concerned so that it may be disbursed to the claimants.
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Title

New India Assurance Company ... vs Anil Prakash Naik And Ors.

Court

High Court Of Judicature at Allahabad

JudgmentDate
11 December, 2002
Judges
  • S Srivastava
  • M Singh