Case Note & Summary
The case arises from a motor accident claim petition filed by the legal representatives of Ankush Buche, who died in a road accident on 22.4.2007. The deceased was traveling in a Minidor goods vehicle (bearing registration No.MH34M315) along with firewood for a funeral pyre. The vehicle turned turtle due to a mechanical fault, causing fatal injuries. The claimants sought compensation from the owner and insurer. The Motor Accident Claims Tribunal, Chandrapur, awarded compensation, holding the insurer liable. The insurer appealed, arguing that the deceased was a gratuitous passenger in a goods vehicle, which was not covered under the policy. The High Court dismissed the appeal, holding that the policy covers third-party risks and that carrying a gratuitous passenger does not constitute a breach of policy conditions. The court upheld the Tribunal's award, finding no error in the calculation of compensation.
Headnote
A) Motor Accident Claims - Gratuitous Passenger in Goods Vehicle - Insurance Liability - The insurer is liable to pay compensation to the legal representatives of a deceased who was a gratuitous passenger in a goods vehicle, as the policy covers third-party risks under the Motor Vehicles Act, 1988. The court held that the insurer cannot avoid liability on the ground that the deceased was not a fare-paying passenger, as the policy covers all third-party risks. (Paras 1-16)
B) Motor Accident Claims - Breach of Policy Conditions - Goods Vehicle - The court held that carrying a gratuitous passenger in a goods vehicle does not constitute a fundamental breach of policy conditions, especially when the vehicle was being used for a lawful purpose and the deceased was not a fare-paying passenger. The insurer is liable to indemnify the owner. (Paras 1-16)
C) Motor Accident Claims - Compensation - Quantum - The court upheld the Tribunal's award of compensation, finding no error in the calculation of loss of dependency or the multiplier applied. The appeal was dismissed. (Paras 1-16)
Issue of Consideration
Whether the insurer is liable to pay compensation when the deceased was a gratuitous passenger in a goods vehicle, and whether the Tribunal erred in holding the insurer liable despite the policy not covering such passengers.
Final Decision
The appeal is dismissed. The judgment and order of the Motor Accident Claims Tribunal, Chandrapur, dated 3rd August, 2016, in M.A.C.P. No.182/2007, is upheld. The insurer is liable to pay compensation to the legal representatives of the deceased.
Law Points
- Gratuitous passenger in goods vehicle
- Third-party risk
- Motor Accident Claims Tribunal
- Breach of policy conditions
- Vicarious liability
- Insurance liability
Case Details
2017 LawText (BOM) (09) 224
First Appeal No.67 of 2017
Shri A.M. Quazi for Appellant, Smt. R.S. Sirpurkar for Respondent Nos.1 to 5
The Oriental Insurance Co. Ltd.
Pushpa wd/o. Ankush Buche (since dead) and others
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Nature of Litigation
Appeal against judgment and order of Motor Accident Claims Tribunal awarding compensation to legal representatives of deceased in a motor accident claim.
Remedy Sought
The appellant insurer sought to set aside the Tribunal's award holding it liable to pay compensation.
Filing Reason
The insurer contended that the deceased was a gratuitous passenger in a goods vehicle, which was not covered under the insurance policy.
Previous Decisions
The Motor Accident Claims Tribunal, Chandrapur, in M.A.C.P. No.182/2007, awarded compensation to the claimants, holding the insurer liable.
Issues
Whether the insurer is liable to pay compensation when the deceased was a gratuitous passenger in a goods vehicle.
Whether the Tribunal erred in holding the insurer liable despite the policy not covering such passengers.
Submissions/Arguments
The appellant argued that the deceased was a gratuitous passenger in a goods vehicle, which is not covered under the policy, and thus the insurer is not liable.
The respondents argued that the policy covers third-party risks and that the deceased was a third party, making the insurer liable.
Ratio Decidendi
The insurer is liable to pay compensation to the legal representatives of a deceased who was a gratuitous passenger in a goods vehicle, as the policy covers third-party risks under the Motor Vehicles Act, 1988. Carrying a gratuitous passenger does not constitute a fundamental breach of policy conditions.
Judgment Excerpts
This is an appeal preferred against the judgment and order dated 3rd August, 2016, passed in Motor Accident Claim Petition No.182/2007, by the Member, Motor Accident Claims Tribunal, Chandrapur.
The incident in this case occurred in the morning of 22.4.2007 when deceased Ankush was traveling by the offending vehicle, a Minidor, bearing registration No.MH34M315.
The need for getting into the offending vehicle arose as an emergency, as the first vehicle, a truck belonging to Western Coalfields Limited, by which he proceeded in the morning to purchase the firewood, went out of order during its movement on the road and the deceased had no option but to stop some goods vehicle and seek permission to ride it with his goods, which being volumnious, were transportable only by a goods vehicle.
When the offending vehicle reached Anturla diversion on Chandrapur-Ghuggus road, due to some mechanical fault, the offending vehicle turned turtle.
In this accident, deceased Ankush sustained multiple injuries including head injuries.
Though he was taken to hospital for management of his injuries, he succumbed to those injuries.
Procedural History
The Motor Accident Claims Tribunal, Chandrapur, in M.A.C.P. No.182/2007, awarded compensation to the claimants. The insurer, The Oriental Insurance Co. Ltd., appealed against that order in the High Court of Judicature at Bombay, Nagpur Bench, by way of First Appeal No.67 of 2017. The High Court dismissed the appeal on 4th September, 2017.
Acts & Sections
- Motor Vehicles Act, 1988:
