Case Note & Summary
The case involves an appeal by the Oriental Insurance Company Limited against the judgment of the Motor Accident Claims Tribunal, Kelapur, in Motor Accident Claim Petition No.61 of 2009. The facts are that on 27 November 2008, the deceased Shatrughan was a pillion rider on a motorcycle driven by his friend Vikas Kudmethe (respondent no.2). The motorcycle collided head-on with another motorcycle driven by Sanjay Jirkar (respondent no.1), resulting in the death of Shatrughan on the spot. A criminal case was registered against both drivers. The claimants, parents of the deceased, filed a claim petition for compensation. The insurance company contested the claim on the ground that no premium was paid for the pillion rider, and therefore, it was not liable. The Tribunal allowed the petition and directed the respondents to pay compensation of Rs. 3,59,000/-. The insurance company appealed solely on the ground that the premium for the pillion rider was not paid. The High Court, after hearing the parties, dismissed the appeal, holding that a pillion rider is a third party and the insurance policy covering third party risks includes liability for pillion riders. The court relied on the principle that the insurance company cannot avoid liability on the ground that no separate premium was paid for the pillion rider. The court upheld the Tribunal's award and directed the insurance company to pay the compensation amount.
Headnote
A) Motor Accident Claims - Liability of Insurance Company - Pillion Rider - Section 147 of Motor Vehicles Act, 1988 - The issue was whether the insurance company is liable to pay compensation for the death of a pillion rider when no separate premium was paid for the pillion rider. The court held that a pillion rider is a third party and the insurance policy covering third party risks includes liability for pillion riders. The insurance company cannot avoid liability on the ground that no separate premium was paid for the pillion rider. (Paras 2-5)
Issue of Consideration
Whether the insurance company is liable to pay compensation for the death of a pillion rider when no separate premium was paid for the pillion rider.
Final Decision
Appeal dismissed. The judgment of the Motor Accident Claims Tribunal, Kelapur in Motor Accident Claim Petition No.61 of 2009 is confirmed. The insurance company is liable to pay compensation.
Law Points
- Liability of insurance company for pillion rider
- Third party coverage under Motor Vehicles Act
- 1988
- Section 147 of Motor Vehicles Act
- Pillion rider as third party
