Case Note & Summary
The case involves an appeal by the New India Assurance Co. Ltd. against the judgment and award of the Motor Accident Claims Tribunal, Jalna, in MACP No.42/2003. The claimants, Thavra Badhu Chavan, Prabhabai Thavra Chavan, and Vimal Thavra Chavan, sought compensation of Rs.2,00,000/- for the death of Vijay Thavra Chavan, who died in a motor vehicle accident on 18/05/2003. The deceased was travelling as a cleaner in a tempo bearing registration No. MH-06-6184, which was a goods carriage. The claimants alleged that the tempo driver was rash and negligent, causing the vehicle to slip into a ditch. The owner of the tempo, Jadhav Janu Valuji, admitted the accident but denied the income of the deceased. The insurer contested liability on the ground that the deceased was a gratuitous passenger in a goods carriage, and the insurance policy did not cover such risks. The Tribunal held the owner and insurer jointly and severally liable to pay Rs.2,00,000/- with 9% interest. The insurer appealed. The High Court examined the insurance policy and found that it covered only third-party risks and not passengers in a goods carriage. The court held that the insurer is not liable to indemnify the owner for the death of a gratuitous passenger. However, following the principle of 'pay and recover' under Section 149 of the Motor Vehicles Act, 1988, the court directed the insurer to pay the compensation to the claimants and then recover the same from the owner. The appeal was allowed in part, modifying the award to the extent that the insurer is not liable to indemnify the owner but must pay and recover.
Headnote
A) Motor Accident Claims - Gratuitous Passenger in Goods Carriage - Insurer's Liability - Section 147, Motor Vehicles Act, 1988 - The deceased was travelling as a gratuitous passenger in a goods vehicle (tempo) which was not covered under the insurance policy. The court held that the insurer is not liable to indemnify the owner for the death of a gratuitous passenger, as the policy only covers third-party risks and not passengers in a goods carriage. (Paras 6-10) B) Motor Accident Claims - Pay and Recover - Section 149, Motor Vehicles Act, 1988 - The court directed the insurer to pay the compensation amount to the claimants and then recover the same from the owner of the vehicle, following the principle of 'pay and recover' to protect the interests of the claimants. (Paras 11-12)
Issue of Consideration
Whether the insurer is liable to pay compensation for the death of a gratuitous passenger travelling in a goods carriage?
Final Decision
Appeal allowed in part. The impugned award is modified. The insurer is directed to pay the compensation amount of Rs.2,00,000/- with interest @ 9% p.a. to the claimants and then recover the same from the owner of the vehicle in accordance with law.
Law Points
- Insurer's liability
- gratuitous passenger in goods carriage
- Section 147 Motor Vehicles Act 1988
- pay and recover
- Section 149 Motor Vehicles Act 1988
