Case Note & Summary
The case involves an appeal by New India Assurance Company Ltd. against the judgment and order dated 27.09.1999 passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No.455 of 1993. The appellant was the insurance company arrayed as respondent No.3 in the trial court. The only ground of challenge was that the vehicle in which the deceased was travelling was a goods vehicle, and the deceased was proceeding as a gratuitous licensee along with 7 to 8 members of a marriage party. The appellant contended that the liability cannot be fastened on the insurance company as the deceased was a gratuitous passenger not permitted to travel in a goods vehicle. The appellant had taken a specific plea in its written statement, but the trial court did not frame an issue or give a finding on that point. The appellant argued that there was an admission by witness Rameshwar Lonkar that the matador was a goods vehicle. However, the court noted that the appellant failed to prove that the deceased was a gratuitous passenger and that there was a breach of the policy terms. The appeal was dismissed.
Headnote
A) Motor Accident Claims - Gratuitous Passenger - Goods Vehicle - Section 147 Motor Vehicles Act, 1988 - The issue was whether the insurer is liable for death of a gratuitous passenger in a goods vehicle. The court held that the insurer is not liable as the policy does not cover such passengers, but the appeal was dismissed because the insurance company failed to prove that the deceased was a gratuitous passenger and that there was a breach of policy terms. (Paras 1-3)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation for the death of a gratuitous passenger travelling in a goods vehicle.
Final Decision
Appeal dismissed.
Law Points
- Insurance liability
- gratuitous passenger
- goods vehicle
- Motor Vehicles Act
- 1988
- Section 147
- breach of policy terms
Case Details
2017 LawText (BOM) (06) 193
First Appeal No.155 of 2004
Smt. Dr. Shalini Phansalkar-Joshi, J.
Shri A.J. Pophaly for Appellant; None for Respondents
New India Assurance Company Ltd.
Smt. Kalabai wd/o Mahadeo Shirpurkar and others
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Nature of Litigation
Appeal against judgment of Motor Accident Claims Tribunal awarding compensation for death in a motor accident.
Remedy Sought
Insurance company sought to avoid liability on the ground that deceased was a gratuitous passenger in a goods vehicle.
Filing Reason
Insurance company challenged the Tribunal's order holding it liable to pay compensation.
Previous Decisions
Motor Accident Claims Tribunal, Nagpur passed judgment and order dated 27.09.1999 in Claim Petition No.455 of 1993.
Issues
Whether the Insurance Company is liable to pay compensation for the death of a gratuitous passenger travelling in a goods vehicle?
Submissions/Arguments
Appellant argued that the vehicle was a goods vehicle and deceased was a gratuitous passenger, hence no liability under the policy.
Appellant contended that specific plea was taken in written statement but trial court did not consider it.
Ratio Decidendi
The insurer is not liable for death of a gratuitous passenger in a goods vehicle, but the appeal was dismissed as the insurance company failed to prove that the deceased was a gratuitous passenger and that there was a breach of policy terms.
Judgment Excerpts
The only ground on which the impugned judgment and order is challenged is that the vehicle in which the deceased was travelling was a goods vehicle, and deceased was proceeding therein as a gratuitous licencee along with 7 to 8 members of the marriage party.
The submission of the learned counsel for the appellant is that despite specific plea being raised by the appellant in its written statement, the Trial Court has not considered the same; no issue to that effect is framed nor any finding is given about the same.
Procedural History
The Motor Accident Claims Tribunal, Nagpur passed judgment and order dated 27.09.1999 in Claim Petition No.455 of 1993. The Insurance Company filed First Appeal No.155 of 2004 before the Bombay High Court, Nagpur Bench. The appeal was dismissed on 06.06.2017.
Acts & Sections
- Motor Vehicles Act, 1988: Section 147
