National Insurance Co. Vs. Prembai Patel
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Head Note
Motor Vehicles Act,1988 - Section 140 , Section 147 (1) , Section 149 (1) , Section 166 , Section 167 , Workmens Compensation Act, 1923 - Section 3
Employee - Death in accident - Clause of ' Act Liability' - Effect on liability of Insurance Company - Contention that as per insurance policy liability of company is limited to that provided under 1923 Act and for which less premium was paid - Held, expression "such liability as is required to be covered by policy under clause (b) of sub-section (1) of Section 147 (being liability covered by terms of policy)," occurring in sub-section (1) of Section 149 clearly shows that any such liability which is mandatorily required to be covered by policy under clause (b) of section 147(1), has to be satisfied by insurance company - Effect of this provision is that insurance policy which covers only liability arising under 1923 Act is valid and permissible under Act - Since policy in question mentioned 'a policy for Act liability' or ' Act liability', liability of insurance company qua employee would be limited to that arising under 1923 Act .
Topic(s)-liability of Insurance Company