Case Note & Summary
The case involves an appeal by the National Insurance Co. Ltd. against the judgment and award of the Motor Accidents Claims Tribunal (MACT) at Shimoga, which had awarded compensation of Rs. 93,500/- with interest at 6% per annum to the claimant, Rasheed Khan, for injuries sustained in a road traffic accident. The accident occurred on 07.04.2009 when the claimant was riding his TVS XL moped and was allegedly hit by a Hero Honda Splendor motorcycle driven by Habibulla Khan. The claimant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 seeking Rs. 13,15,000/- as compensation. The MACT held that the accident occurred due to the rash and negligent driving of the motorcycle by Habibulla Khan and awarded compensation. The insurer appealed, contending that the claimant was a gratuitous passenger in a goods vehicle and thus not covered by the insurance policy. The High Court examined the facts and found that the claimant was traveling as a gratuitous passenger in a goods vehicle, which is not covered under the policy. The court relied on the definition of a goods vehicle under Section 2(14) of the Motor Vehicles Act and the principle that the insurer's liability is limited to the terms of the policy. The court allowed the appeal, setting aside the award against the insurer and directing the owner of the vehicle to pay the compensation.
Headnote
A) Motor Vehicles Act - Gratuitous Passenger - Liability of Insurer - Section 147, 149 Motor Vehicles Act, 1988 - The court considered whether the insurer is liable to pay compensation to a gratuitous passenger in a goods vehicle. The court held that the insurer is not liable as the policy does not cover the risk of a gratuitous passenger in a goods vehicle, following the principle that the liability of the insurer is limited to the terms of the policy and the Act. (Paras 5-8) B) Motor Vehicles Act - Goods Vehicle - Definition - Section 2(14) Motor Vehicles Act, 1988 - The court examined the definition of a goods vehicle and held that a vehicle designed for carriage of goods cannot be used to carry passengers for hire or reward, and any such use is not covered by the insurance policy. (Para 6)
Issue of Consideration
Whether the insurer is liable to pay compensation to a person who was traveling as a gratuitous passenger in a goods vehicle at the time of the accident.
Final Decision
The appeal is allowed. The judgment and award of the MACT dated 17.11.2011 in MVC No. 568/2009 is set aside insofar as it fastens liability on the appellant. The appellant is exonerated from liability to pay compensation. The owner of the vehicle (respondent 2) is directed to pay the compensation awarded by the MACT.
Law Points
- Motor Vehicles Act
- 1988
- Section 147
- Section 149
- gratuitous passenger
- goods vehicle
- insurance policy
- liability of insurer
