United Inida Insu.Co.Ltd Hyd vs V.N.Sharma Another
2021 Latest Caselaw 4588 Tel

               THE HONOURABLE JUSTICE G. SRI DEVI

                           M.A.C.M.A. No.1071 of 2008

JUDGMENT :

This appeal is filed by the Insurance Company, aggrieved of the

order and decree dated 31.12.1999 in O.P.No.1045 of 1991 on the file

of V-Additional Chief Judge, City Civil Court, Hyderabad.

2. On 30.03.1991, due to the rash and negligent driving of Lorry

bearing No.ATT-5121 by its driver, it dashed against the car of the

claimant, causing fracture injuries to him.

3. The Tribunal, on examining the oral and documentary evidence

on record, partly allowed the O.P., awarding a total compensation of

Rs.93,392/- along with costs and interest @ 12% per annum from the

date of petition till the date of realization. Questioning the same, the

Insurance Company has filed this appeal.

4. Heard both sides and perused the record.

5. Copy of the Insurance Policy shows that it was valid from

10.08.1990 to 09.08.1991. Admittedly, the accident occurred on

30.03.1991. Learned counsel for appellant has relied upon the

decision of the Hon'ble Supreme Court in National Insurance Co.

Ltd. V. Keshav Bahadur & others1, wherein, at para 7 of the

judgment, it has been held by the Hon'ble Supreme Court that in case

the insurer-appellant not taking any higher liability by accepting

2004 (1) Supreme 749

GSD, J MACMA.No.1071 of 2008

higher premium, the liability is neither unlimited nor higher than the

statutory liability fixed under Section 95(2) of the Act. Even if a

vehicle is the subject matter of comprehensive insurance and a higher

premium is paid on that score, limits of the liability with regard to

third party risk does not become unlimited or higher beyond the

statutory liability fixed. For this purpose, a specific agreement has

to be arrived at between the insured and the insurer and separate

premium has to be paid in respect of additional amount of liability

undertaken by the insurer in that regard..

6. It has been fairly conceded by the learned counsel for the

appellant that the Insurance Company, at the time of preferring the

appeal, had deposited 50% of the awarded amount.

7. In the light of the aforesaid judgment of the Hon'ble Supreme

Court, the insurer cannot withhold the balance amount indefinitely. In

the circumstances, the appellant-Insurance Company is directed to

deposit the balance amount with interest @ 9% per annum on the

balance amount from the date of claim petition till realization of the

same. The balance amount shall be deposited by appellant-Insurance

Company before the Tribunal within two months from today.

8. The appeal is allowed to the extent indicated above. There shall

be no order as to costs.

Pending miscellaneous applications, if any, shall stand closed.

____________________ JUSTICE G.SRI DEVI Date: 14.12.2021 ajr