Case Note & Summary
The case involves an appeal by the National Insurance Company Ltd. against a judgment and order dated 22.08.2006 passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No. 892/1997. The deceased, Jameel Ahmed, was a pillion rider on a Bajaj Scooter bearing registration No. MH31/L1109, which met with an accident on 8.7.1997 at about 10.00 p.m. in a hit and run case involving a jeep. The scooter was insured with the appellant insurance company under an 'Act Only' policy. The legal heirs of the deceased (respondents 1 to 4) filed a claim petition seeking compensation of Rs.2,94,000/-, alleging that the deceased was employed at Vidarbha Petroleum and earning Rs.1600/- per month. The insurance company resisted the claim, contending that the policy was only an Act Policy and did not cover the risk of a pillion rider. The Tribunal, however, held the insurance company jointly and severally liable along with the owner of the scooter. The sole legal issue before the High Court was whether under an Act Policy, the risk of a pillion rider is covered. The Court analyzed the provisions of the Motor Vehicles Act, 1988, particularly Section 147, which defines the requirements of an insurance policy against third-party risks. The Court noted that an Act Policy only covers liabilities arising out of the use of the vehicle in a public place for death or bodily injury to any person, but specifically excludes liability for death or injury to a passenger carried for hire or reward or in a vehicle not permitted to carry passengers. The Court held that a pillion rider on a scooter is a gratuitous passenger and not a third party, and therefore, the insurance company is not liable under an Act Policy. The Court allowed the appeal, setting aside the award against the insurance company, but clarified that the claimants could recover the compensation from the owner of the scooter.
Headnote
A) Motor Accident Claims - Act Policy - Pillion Rider Coverage - Section 147 Motor Vehicles Act, 1988 - The sole issue was whether an 'Act Only' policy covers the risk of a pillion rider on a scooter. The Court held that under an Act Policy, the insurance company is not liable for the death of a pillion rider as the policy only covers third-party risks and not gratuitous passengers. The appeal was allowed, setting aside the Tribunal's award against the insurance company. (Paras 1-6)
Issue of Consideration
Whether under an Act Policy the risk of a pillion rider is covered so as to make the Insurance Company liable to pay compensation to the claimant jointly and severally along with the owner of the vehicle.
Final Decision
The appeal is allowed. The impugned judgment and award of the Motor Accident Claims Tribunal, Nagpur dated 22.08.2006 in Claim Petition No. 892/1997 is set aside insofar as it holds the appellant Insurance Company jointly and severally liable to pay compensation. The claimants are at liberty to recover the compensation from the owner of the scooter.
Law Points
- Act Policy does not cover pillion rider risk
- Insurance company not liable for compensation to pillion rider under Act Only policy
- Motor Vehicles Act
- 1988 Section 147
