TaxTMI 
TaxTMI 
1995 (2) TMI 434
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....passengers for hire and bearing Registration No. CIK-8108, owned by respondent No. 4. This insurance policy was in force at the material time. 3. On 3rd of January, 1989, this bus, while it was being driven by respondent No. 5,met with an accident. The deceased, Laxman Singh, who was sitting on the roof top of the bus with the permission of the bus driver, respondent No. 5, hit a tree on account of the alleged rash and negligent driving of the said bus by respondent No.5.He was admitted to hospital and died on 7.1.1989 on account of the injuries received in the accident. The legal heirs of Laxman Singh, who are respondents 1 to 3 before us, filed a claim for compensation amounting to Rs. 7,81,000/-before the Motor Accident Claims Tribuna....
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....mpany has contended that it has charged premium at the rate of Rs. 12/ per passenger in respect of 50 passengers to cover its limited liability under Section 50 of the Motor Vehicles Act, 1939 which was then in force. 7. Section 95 forms part of Chapter VIII of the Motor Vehicles Act, 1939 which deals with insurance of motor vehicles against third party risks. Under Section 95, in order to comply with the requirements of this Chapter, a policy of insurance must be a policy which, inter alia, insures the person or classes of persons specified in the policy to the extent specified in sub-section (2). Under Section 95 (1)(b)(ii), the insurance policy must cover the death or bodily injury to any passenger of a public service vehicle, c....
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....r:- "Comprehensive insurance of the vehicle and payment of higher premium on this score, however, does not mean that the limit of the liability with regard to third party risk becomes unlimited or higher than the statutory liability fixed under subsection (2) of Section 95 of the Act. For this purpose a specific agreement has to be arrived at between the owner and the insurance company and separate premium has to be paid on the amount of liability undertaken by the insurance company in this behalf In the present case, therefore, a comprehensive policy which has been issued on the basis of the estimated value of the vehicle of Rs. 2,50,000/- does not automatically result in covering the liability with regard to third party risk for an ....
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.... 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. As pointed. out by this Court in the case of National Insurance Co. Ltd. v. Jugal Kishore & Ors., (supra) comprehensive policy only entitles the owner to claim reimbursement of the entire amount of loss or damage suffered up to the estimated value of the vehicle. 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 pre....