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1995 (2) TMI 434 - SC - Indian LawsWhether the appellant is liable to pay compensation to the tune of ₹ 1,10,000/- together with interest thereon at the rate of 12% from the date of the presentation of the petition to respondents 1 to 3? Held that:- In the present case, the premium which has been paid is at the rate of ₹ 12/- per passenger and is clearly referable to the statutory liability of fifteen thousand rupees per passenger under Section 95 (2)(b)(ii) of the Motor Vehicles Act, 1939. In the present case, there is no special con- tract between the appellant-company and respondent No. 4 to cover unlimited liability in respect of an accident to a passenger. In the absence of such an express agreement, the policy covers only the statutory liability. The mere fact that the insurance policy is a comprehensive policy will not help the respondents in any manner. It does not mean that the limit of liability with regard to third party risk becomes unlimited or higher than the statutory liability. For this purpose, a specific agreement is necessary which is absent in the present case.The appellant-company is, therefore, entitled to succeed to the extent that it has been directed to pay to respondents 1 to 3 any amount in excess of ₹ 15,000/-. The, appeal is, therefore, allowed to this extent. The liability of the appellant and respondents 4 and 5 to pay the amount of the award was joint and several.
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