ORIGINAL JURISDICTION - Orissa High Court

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offending truck. The further case of the claimants is that the accident took
place due to rash and negligent driving by drivers of both the vehicles. The
deceased was aged about 17 years and a student of Class-X. In her leisure
time, the deceased along with her sister was doing stitching of the dress
materials of villagers and was earning Rs.300/- per month. Out of this profit, the
deceased was contributing towards maintenance of the family. The deceased
was a goods student and in the year of accident she was to appear at the Board
examination. Her future was to be a Nurse. With the above averments, the
claim petition was filed claiming compensation of Rs.2,00,000/-
3. Both the owners of the vehicles involved in the accident did not contest the
case. They were set ex parte. Both the insurers of the offending vehicles
INDIAN LAW REPORTS, CUTTACK SERIES [2010]
contested the case by filing separate written statements denying almost all the
material facts alleged in the claim petition. They have denied their knowledge
about the validity of the Insurance Policies and driving licences of drivers of
respective vehicle and prayed for dismissal of the claim petition.
The learned Tribunal framed as many as three issues. After taking into
consideration the materials on record, the Tribunal held that due to rash and
negligent driving of drivers of both the vehicles the accident took place. All the
four claimants before the Tribunal are entitled to compensation. The Tribunal
further held that both the vehicles were duly insured by the Insurance Company,
i.e., the opposite party Nos. 3 and 4 and they are liable to pay the compensation
at the ratio of 50:50. With the above findings, the Tribunal determined the
amount of compensation at Rs.1,60,000/-.
Being aggrieved with the said judgment of the learned 3 rd M.A.C.T.,
Bhubaneswar, the appellant–Insurance Company has filed the present appeal.
4. Mr. M. Sinha, learned counsel appearing on behalf of the appellant-Oriental
Insurance Co. Ltd. contends that since the deceased was traveling in private
Tata Sumo bearing registration No.OR-02-F-0222, she is not entitled to get any
compensation as it violates the policy conditions. It is further contended that the
deceased being a student she had no personal income.
5. Mr. P.K. Mishra, learned counsel appearing on behalf of the claimants
submits that since it is a comprehensive policy, the passenger traveling in a
private vehicle are automatically covered by the said policy and are entitled to
get compensation. In support of his submission, he cited and relied upon a
decision in Divisional Manager, Oriental Insurance Co. Ltd. vs. Arati Mishra
& Anr., (2009) 2 CLR 579. It is further submitted that the Tribunal has adopted
annual notional income of Rs.15,000/- as per Schedule-2 of the Motor Vehicles
Act considering the fact that the deceased had no income at the relevant time.
In the said accident, two daughters of the claimant-respondents died. In other
Misc. Case No. 416 of 1997, in respect of another sister of the deceased, the
appellant-Insurance Company has paid its share of 50% of the awarded amount
as directed by the learned Tribunal and the claimant-respondents have already