Case Note & Summary
The case arises from a motor accident claim where the deceased, Parvati, was traveling as a pillion rider on a motorcycle when she fell off and died. The claimants, her son and daughters, sought compensation from the owner and insurer of the motorcycle. The Motor Accident Claims Tribunal (MACT) awarded compensation, holding the insurer liable. The insurer appealed, arguing that the deceased was a gratuitous passenger in a goods vehicle and thus not covered under the insurance policy. The High Court of Karnataka allowed the appeal, holding that the insurer is not liable for the death of a gratuitous passenger in a goods vehicle under Section 147 of the Motor Vehicles Act, 1988. However, applying the pay and recover principle, the court directed the insurer to pay the compensation amount to the claimants and then recover the same from the owner of the vehicle. The court set aside the MACT's award to the extent of holding the insurer liable and modified it accordingly.
Headnote
A) Motor Vehicles Act - Gratuitous Passenger - Liability of Insurer - Section 147 of Motor Vehicles Act, 1988 - The insurer is not liable to pay compensation for the death of a gratuitous passenger traveling in a goods vehicle, as the policy does not cover such risk. The court held that the insurer cannot be held liable for the death of a person who was not a third party but a gratuitous passenger in a goods vehicle. (Paras 1-5)
B) Motor Vehicles Act - Pay and Recover - Section 149 of Motor Vehicles Act, 1988 - The court directed the insurer to pay the compensation amount to the claimants and then recover the same from the owner of the vehicle, applying the pay and recover principle. Held that the insurer must first satisfy the award and then recover from the insured. (Paras 5-6)
Issue of Consideration
Whether the insurer is liable to pay compensation for the death of a gratuitous passenger traveling in a goods vehicle?
Final Decision
The appeal is allowed. The impugned judgment and award dated 26.11.2014 in MVC.No.517/2012 passed by the II Additional M.A.C.T & Additional District & Sessions Judge at Bidar is set aside to the extent of holding the insurer liable. However, the insurer is directed to pay the compensation amount to the claimants and then recover the same from the owner of the vehicle (respondent No.4) in accordance with law.
Law Points
- Liability of insurer for gratuitous passenger in goods vehicle
- Scope of Section 147 of Motor Vehicles Act
- 1988
- Pay and recover principle
Case Details
2020 LawText (KAR) (09) 107
Miscellaneous First Appeal No.200220/2015 (MV)
Krishna S Dixit, P.N.Desai
Smt. Preeti Patil Melkundi (for appellant), Sri. Sachin M. Mahajan (for R2 & R3), Sri Venkatesh C. Mallabadi (for R4)
The Manager, Oriental Insurance Co. Ltd.
Raju S/o. Tulsiram, Surekha W/o. Rajkumar, Vijaylaxmi W/o. Nagnath, Chandrashekhar S/o. Veereshlingam Gada
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Nature of Litigation
Appeal against judgment and award of Motor Accident Claims Tribunal in a claim for compensation for death in a motor accident.
Remedy Sought
The appellant (insurer) sought to set aside the impugned judgment and award dated 26.11.2014 in MVC.No.517/2012 passed by the II Additional M.A.C.T & Additional District & Sessions Judge at Bidar.
Filing Reason
The insurer was aggrieved by the MACT's award holding it liable to pay compensation for the death of a gratuitous passenger in a goods vehicle.
Previous Decisions
The MACT had passed an award in MVC.No.517/2012 on 26.11.2014, which was challenged in this appeal.
Issues
Whether the insurer is liable to pay compensation for the death of a gratuitous passenger traveling in a goods vehicle?
Submissions/Arguments
The appellant/insurer argued that the deceased was a gratuitous passenger in a goods vehicle and thus not covered under the insurance policy, and therefore the insurer is not liable.
The respondents/claimants contended that the insurer is liable to pay compensation.
Ratio Decidendi
The insurer is not liable to pay compensation for the death of a gratuitous passenger traveling in a goods vehicle, as the policy does not cover such risk under Section 147 of the Motor Vehicles Act, 1988. However, applying the pay and recover principle, the insurer must first satisfy the award and then recover from the insured.
Judgment Excerpts
Aggrieved by the judgment and award in MVC.No.517/2012 dated 26.11.2014 by the II Additional M.A.C.T. and Additional District and Sessions Judge, at Bidar, the Insurer has filed this appeal.
The brief contention of the claimants before the M.A.C.T. was :- That on 04.08.2012 in the morning the deceased - Parvati along with her son i.e., claimant No.1 had been to their agricultural land bearing Sy.No.25/A2 situated at village Hippalgaon.
Procedural History
The claimants filed MVC.No.517/2012 before the II Additional M.A.C.T & Additional District & Sessions Judge at Bidar, which passed an award on 26.11.2014. The insurer appealed against that award by filing Miscellaneous First Appeal No.200220/2015 before the High Court of Karnataka, Kalaburagi Bench.
Acts & Sections
- Motor Vehicles Act, 1988: Section 147, Section 149, Section 173
