Case Note & Summary
The case involves an appeal by Iffco Tokio General Insurance Company Ltd. against the judgment and award dated 21st May 2013 passed by the Motor Accidents Claims Tribunal (M.A.C.T.), Thane in Motor Accident Claim Application No. 965 of 2009. The facts are that in the intervening night of 24th October 2008 to 25th October 2008, at about 00.35 hours, one Namdeo Yashwant Vishe was traveling as a pillion rider on a motorcycle bearing no. MH-04-CN-9565 ridden by Mr. Mahesh Choudhary. The motorcycle was driven at high speed and suddenly braked, causing it to skid and the pillion rider to fall and sustain fatal injuries. The motorcycle was owned by Mr. Mangesh Yashwant Shelar and insured with the appellant. The widow, minor son, and mother of the deceased filed a claim under Section 166 of the Motor Vehicles Act, 1988 against the owner and the insurance company. The Tribunal awarded compensation of Rs.7,25,136.00 holding the appellant liable. The appellant challenged the award, arguing that the pillion rider was not a third party and was not covered under the insurance policy as no additional premium was paid for a personal accident cover. The court analyzed the provisions of Section 147 of the Motor Vehicles Act, 1988, which defines the requirements of insurance policies. It noted that a policy must cover liability for death or bodily injury to a third party, but a pillion rider on a motorcycle is not considered a third party. The court referred to the decision in New India Assurance Co. Ltd. v. Vedwati, (2007) 9 SCC 580, which held that a pillion rider is not covered unless additional premium is paid. The court also noted that the policy in question did not include a personal accident cover for the pillion rider. Consequently, the court allowed the appeal, set aside the award against the insurance company, and directed the claimants to recover the compensation from the owner of the vehicle.
Headnote
A) Motor Vehicles Act - Third Party Insurance - Liability of Insurer - Section 147, Motor Vehicles Act, 1988 - Pillion rider on a motorcycle is not a 'third party' and is not covered under a standard third party insurance policy unless additional premium is paid for a personal accident cover - The court held that the Insurance Company is not liable to indemnify the owner for the death of a pillion rider in the absence of such cover (Paras 5-10).
Issue of Consideration
Whether the Insurance Company is liable to pay compensation to the claimants for the death of a pillion rider on a motorcycle under a standard third party insurance policy, in the absence of a personal accident cover.
Final Decision
The appeal is allowed. The impugned judgment and award dated 21st May 2013 passed by the M.A.C.T., Thane is set aside insofar as it holds the appellant Insurance Company liable. The claimants are entitled to recover the compensation amount from the owner of the vehicle, Mr. Mangesh Yashwant Shelar.
Law Points
- Motor Vehicles Act
- 1988
- Section 147
- Section 166
- third party insurance
- pillion rider
- liability of insurer
- personal accident cover
