Case Note & Summary
The case involves an appeal by the United India Insurance Company against an order of the Motor Accidents Claims Tribunal (MACT), Mumbai, dated 8.10.1996, directing the insurer to pay Rs.70,000/- inclusive of Rs.12,000/- under Section 140 of the Motor Vehicles Act, 1988, to the claimant, Miss Vijaya R. Baait. The claimant was employed as a packer with M/s. Hybo Hindusthan. The employer had engaged a bus bearing No. MMK-7039 owned by Mr. Harry V. Desilva and insured with the appellant insurance company. The policy was valid on the date of the accident, which occurred on 3.5.1991 at about 6.40 p.m. when the claimant left the factory and came on MIDC Road. The claimant's initial case was that the bus was meant to carry employees from their residences to the place of employment and back. However, during cross-examination, she improved her stand, stating that she was boarding the bus when the accident occurred. The Tribunal found that the claimant was a passenger in the bus and awarded compensation. The insurance company appealed, arguing that the claimant was not a passenger as no fare was paid and that the policy did not cover employees. The court noted that the undisputed facts were that the bus was engaged by the employer to transport employees, the policy was valid, and the accident occurred while the claimant was boarding the bus. The court held that the claimant was a passenger in the bus, and the insurance company was liable. The appeal was dismissed with no order as to costs.
Headnote
A) Motor Accident Claims - Employer's Bus - Passenger Status - The claimant, an employee, was injured while boarding the employer's bus which was used to transport employees. The insurance company contended that the claimant was not a passenger as no fare was paid. The court held that the claimant was a passenger in the bus and the insurance policy covered the vehicle, making the insurer liable. The fact that the employer arranged the bus for employees does not exclude the claimant from being a passenger. (Paras 2-6) B) Motor Vehicles Act, 1988 - Section 140 - No Fault Liability - The Tribunal awarded Rs.70,000/- including Rs.12,000/- under Section 140. The court upheld the award, noting that the accident occurred while the claimant was boarding the bus, and the policy was valid. The insurer's appeal was dismissed. (Paras 2, 6)
Issue of Consideration
Whether the insurance company is liable to pay compensation to an employee who was injured while boarding the employer's bus, when the policy covers the vehicle and the employee was a passenger.
Final Decision
The appeal is dismissed. The order of the MACT, Mumbai, dated 8.10.1996 is upheld. No order as to costs.
Law Points
- Liability of insurer for employees as passengers
- No breach of policy conditions
- Employer's bus used for employee transport
- Section 140 Motor Vehicles Act
- 1988
- No requirement of fare for passenger status
