Case Note & Summary
The case involves an appeal by the Oriental Insurance Company Ltd. against the judgment and award dated 26.06.2010 passed by the II Additional District Judge & Member, MACT-III, Dakshina Kannada, Mangalore, in MVC No.1423/2004, awarding compensation of Rs.71,960/- with interest at 6% p.a. to the claimant, Sri. Ganesh Devadiga, for injuries sustained in a road accident. The accident occurred on 31.07.2004 at about 8.45 p.m. when the claimant was a pillion rider on a Bajaj Chetak Scooter No.CTA 8277. Due to the rash and negligent riding of the scooter by its rider, the scooter fell, causing the claimant to suffer a fracture of his left leg. The claimant filed a claim petition seeking compensation. The Tribunal held the insurance company liable to pay the compensation. The insurance company appealed, contending that the pillion rider was not covered under the policy as no additional premium was paid for pillion rider coverage. The High Court, after hearing arguments, dismissed the appeal, holding that a pillion rider on a two-wheeler is a third party covered under the insurance policy under Section 147 of the Motor Vehicles Act, 1988, and the insurer is liable to pay compensation even without additional premium. The court relied on the principle that the policy covers the risk of third parties, and a pillion rider falls within that category. The court upheld the Tribunal's award and directed the insurance company to pay the compensation.
Headnote
A) Motor Vehicles Act - Third Party Insurance - Pillion Rider Coverage - Section 147 of Motor Vehicles Act, 1988 - The court held that a pillion rider on a two-wheeler is a third party covered under the insurance policy, and the insurer is liable to pay compensation even if no additional premium is paid for pillion rider coverage, as the policy covers the risk of third parties. (Paras 2-5)
Issue of Consideration
Whether the insurance company is liable to pay compensation for injuries sustained by a pillion rider on a two-wheeler, when the policy does not specifically cover pillion riders?
Final Decision
Appeal dismissed; insurance company held liable to pay compensation
Law Points
- Insurance company liable for pillion rider as third party
- Section 147 MV Act covers pillion rider
- No requirement of additional premium for pillion rider coverage
