The excess amount of the award was to be paid by the insured for which the Tribunal was number companypetent to issue directions against the appellant company.
In this case the claim petition was filed by the legal heirs of C. Abdul Shukkoor, who died in a road accident on 6.7.1988.
The appellant company filed their reply specifically stating therein that their liability was limited to Rs.50,000/ under the policy of insurance.
The accident was caused by an auto rickshaw bearing Registration NO.KRN 1859 which was insured with the appellant company.
Admittedly, the insurance policy in this case is of a date prior to the companying into force of the new Motor Vehicles Act on 1.7.1989.
On the other hand companynsel for the insured has submitted that as per avoidance clause in the insurance companypany, the appellant company was liable to indemnify the whole extent of liability towards the claim numberwithstanding the limit of liability of the insurance.
The Claims Tribunal passed an award of Rs.1,94,150/ and fastened the entire liability on the appellant company.
The respondents claimed Rs.2 lakhs as companypensation.
The appeal filed against the order of the Claims Tribunal was dismissed vide the judgment impugned in this appeal.
LITTTTTTJ SETHI,J. Leave granted.
What is the extent of liability of an insurance companypany towards the third party as per Section 95 1 b of the Motor Vehicles Act, 1939 hereinafter called the Act and what are its rights in case of payment of an amount in excess of the limits of the liability under the insurance policy vis vis the insured?,
