Case Note & Summary
The case involves two first appeals filed by the New India Assurance Company Ltd. challenging the judgments and awards dated 16-06-2010 passed by the Motor Accident Claims Tribunal, Amalner, in M.A.C.P. Nos. 89/2006 and 90/2006, which allowed compensation for the death of two individuals. The background is that the deceased were travelling as passengers in a goods vehicle (Eicher truck) when the accident occurred. The Insurance Company's main defence was that the vehicle was a goods vehicle and the deceased were neither owners of the goods nor authorized persons covered under the policy, thus the insurer was not liable. The legal issue was whether the Insurance Company is liable to pay compensation for passengers in a goods vehicle under the Motor Vehicles Act, 1988. The appellant argued relying on Sections 147 and 149 of the Act that the policy does not cover such passengers. The court, after hearing the parties, allowed the appeals, setting aside the Tribunal's awards and holding that the Insurance Company is not liable to pay compensation as the deceased were unauthorized passengers in a goods vehicle.
Headnote
A) Motor Accident Claims - Goods Vehicle - Passenger Liability - Section 147 Motor Vehicles Act, 1988 - The insurer is not liable for death of passengers in a goods vehicle who are not owners of goods or authorized persons - The court held that the Insurance Company is not liable to pay compensation as the deceased were unauthorized passengers in a goods vehicle (Paras 5-6).
Issue of Consideration
Whether the Insurance Company is liable to pay compensation for the death of passengers travelling in a goods vehicle who were neither owners of goods nor authorized persons under the policy.
Final Decision
Both first appeals are allowed. The judgments and awards dated 16-06-2010 passed by the Member, Motor Accident Claims Tribunal, Amalner, in M.A.C.P. Nos. 89/2006 and 90/2006 are set aside. The Insurance Company is not liable to pay compensation.
Law Points
- Liability of insurer for passengers in goods vehicle
- Scope of Section 147 Motor Vehicles Act
- 1988
- Unauthorized passengers not covered
Case Details
2013 LawText (BOM) (09) 5
First Appeal No. 2575 of 2009 with First Appeal No. 2548 of 2009
S.G. Chapalgaonkar for appellant, S.S. Patil for respondent Nos. 1 & 2 (in FA 2575/09) and for respondent No. 1 (in FA 2548/09)
New India Assurance Company Ltd.
Janabai W/o Narayan Patil, Bhaskar s/o Narayan Patil, Dipabhai Chimanhai Patil (in FA 2575/2009); Latabai W/o Nana Patil, Dipabhai Chimanhai Patil (in FA 2548/2009)
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Nature of Litigation
First appeals against judgments and awards of Motor Accident Claims Tribunal allowing compensation for death in a motor accident.
Remedy Sought
Insurance Company sought setting aside of the Tribunal's awards and declaration that it is not liable to pay compensation.
Filing Reason
Insurance Company challenged the Tribunal's decision to award compensation for death of passengers in a goods vehicle, arguing they were unauthorized.
Previous Decisions
Motor Accident Claims Tribunal, Amalner, allowed compensation in M.A.C.P. Nos. 89/2006 and 90/2006 on 16-06-2010.
Issues
Whether the Insurance Company is liable to pay compensation for death of passengers in a goods vehicle who were not owners of goods or authorized persons.
Submissions/Arguments
Appellant/Insurance Company submitted that the vehicle was a goods vehicle and deceased were passengers not covered under the policy, relying on Sections 147 and 149 of the Motor Vehicles Act, 1988.
Ratio Decidendi
The insurer is not liable for death of passengers in a goods vehicle who are not owners of goods or authorized persons under the policy, as per Section 147 of the Motor Vehicles Act, 1988.
Judgment Excerpts
The main defence taken by the learned Counsel for the appellant/ Insurance Company is that the vehicle involved in the accident is goods vehicle an Isher truck, and both the deceased were travelling as passengers in the said truck. They were neither owners of the goods nor the persons authorised who can be covered under the policy.
The learned Counsel for the appellant-Insurance Company relied on Section 147 and 149 of the Motor Vehicles Act, 1988
Procedural History
The Motor Accident Claims Tribunal, Amalner, passed awards on 16-06-2010 in M.A.C.P. Nos. 89/2006 and 90/2006 allowing compensation. The Insurance Company filed two first appeals before the High Court challenging those awards. The appeals were admitted and heard finally at the stage of admission by consent.
Acts & Sections
- Motor Vehicles Act, 1988: 147, 149
