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National Insurance Company Limited vs G.Arumugam on 22 March, 2010

4.The Tribunal on considering the evidence on record came to the conclusion that on account of the rash and negligent driving of the driver of the 1st respondent's vehicle, the accident has occurred. The contentions raised by the 2nd respondent/Insurance Company during the arguments that the 1st respondent had violated the policy conditions by allowing 21 persons travelled in a goods vehicle and therefore, the 2nd respondent is not liable to compensate the 1st respondent, was rejected on the ground that as per Ex.R.1 – Insurance Policy, the owner-cum-driver and 3 employees were covered under the Policy. The Tribunal took the view that there was a compulsory coverage for the owner-cum-driver and 3 employees and at the time of accident, 10 persons were travelling. The petitioner was a third party and following the Judgments in National Insurance Company Limited, Kovilpatti v. G.Arumugam and another reported in 2010 5/10 https://www.mhc.tn.gov.in/judis C.M.A.No.2683 of 2012 (2) TNMAC 362, directed the 2nd respondent Insurance Company to pay compensation and recover the same from the 2nd respondent. As regards the quantum of compensation, a sum of Rs.2,31,000/- was awarded. Challenging the Award of compensation to the petitioner, the Insurance Company is before this Court. Challenging the low amount of compensation granted, the 2nd respondent Insurance Company has filed the above Cross Objection.
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