VERY IMPORTANT POINT
The insurer is not liable to pay the compensation under the Motor Vehicles Act, 1988 for the death or bodily injury to a person travelling in goods vehicle as passenger.

Headnote:Motor Vehicles Act, 1988-Sections 147, 145(c), 2(14)-[Motors Vehicles Act, 1939-Section 95, 2(8)]-Insurance-Death or bodily injury to a person travelling in goods vehicle as passenger-Liability of insurer to pay compensation under the 1988 Act-Whether insurer will have any liability in cases of passengers travelling in goods vehicles which met with accident resulting in death of such person or bodily injury-(No)-Difference in language of goods vehicle as appearing in old Act of 1939 and goods carriage in the Act of 1988-Provisions of 1988 Act do not enjoin any statutory liability on owner of vehicle to get his vehicle insured for any passenger travelling in a goods carriage-Insurer would have no liability therefor.
Held : The difference in the language of "goods vehicle" as appearing in the old Act and "goods carriage" in the Act is of significance . A bare reading of the provisions makes it clear that the legislative intent was to prohibit goods vehicle from carrying any passenger. This is clear from the expression "in addition to passengers" as contained in definition of "goods vehicle" in the old Act. The position becomes further clear because the expression used is "goods carriage" is solely for the carriage of goods". Carrying of passengers in a goods carriage is not contemplated in the Act. There is no provision similar to clause (ii) of the proviso appended to Section 95 of the old Act prescribing requirement of insurance policy. Even Section 147 of the Act mandates compulsory coverage against death of or bodily injury to any passenger of "public service vehicle". The proviso makes it further clear that compulsory coverage in respect of drivers and conductors of public service vehicle and employees carried in goods vehicle would be limited to liability under the Workmen s Compensation Act, 1923 (in short `WC Act ). There is no reference to any passenger in "goods carriage . The inevitable conclusion, therefore, is that provisions of the Act do not enjoin any statutory liability on the owner of a vehicle to get his vehicle insured for any passenger travelling in a goods carriage and the insurer would have no liability therefor. (Paras 10 & 11)

Judgement Key Points

Based on the provided legal document, here are the key points regarding the liability of insurers for passengers in goods vehicles:

Insurer Liability Determination: The insurer is not liable to pay compensation under the Motor Vehicles Act, 1988 for the death or bodily injury of a person traveling in a goods vehicle as a passenger. [judgement_subject] (!) (!)
Legislative Intent and Terminology: The difference in language between "goods vehicle" in the old Act (1939) and "goods carriage" in the new Act (1988) is significant. The old Act allowed goods vehicles to carry passengers "in addition to passengers," whereas the new Act defines "goods carriage" as solely for the carriage of goods, implying a prohibition on carrying passengers. (!) (!)
Absence of Compulsory Insurance Provision: Unlike the old Act (Section 95 proviso clause ii), the new Act (Section 147) does not contain a provision requiring compulsory insurance coverage for passengers in goods carriages. (!)
Statutory Coverage Limits: Section 147 of the Act mandates compulsory coverage only for "public service vehicles" and limits coverage for employees carried in goods vehicles to liabilities under the Workmen's Compensation Act, 1923, with no reference to general passengers. (!)
Conclusion on Statutory Liability: The provisions of the Act do not impose any statutory liability on the owner of a vehicle to get it insured for any passenger traveling in a goods carriage; consequently, the insurer has no liability. (!)
Judicial Precedent: This view is supported by the decision in New India Assurance Co. Ltd. v. Asha Rani and Ors. (2003 (2) SCC 223). (!)
Outcome: The appeals were allowed, setting aside the judgment of the Tribunal and the High Court. (!)

JUDGMENT

Arijit Pasayat, J.-Leave granted.

2. The only question raised in these appeals is whether the insurer is liable to pay the compensation under the Motor Vehicles Act, 1988 (in short the Act ) for the death or bodily injury to a person traveling in goods vehicle as passenger. Liability of the insurer was fixed by relying on this Court s decision in New India Assurance Co. Ltd. v. Satpal Singh (2000(1) SCC 237).

3. Factual aspects need not be gone into in detail, as there is practically no dispute on the factual aspects.

4. Learned counsel for the insurer-appellant submitted that Section 149(2) of the Act is etymologically different from proviso (ii) to Section 96(2)(b) of the Motor Vehicles Act 1939 (hereinafter referred to as the old Act ) and, therefore, the ratio in Satpal Singh s case (supra) has no application. In response, learned counsel appearing for the claimants submitted that in the said case such a stand has been negatived and it has been held that insurer is liable to pay compensation to gratuitous passengers.

5. This Court had occasion to deal with cases of passengers traveling in goods vehicles which met with accident resulting in death of such person or bodily injury. Such cases belong to three categories i.e. (1) those covered by the old Act; (2) those covered by the Act; and (3) those covered by amendment of the Act in 1994 by the Motor Vehicles (Amendment) Act, 1994 (hereinafter referred to as the Amendment Act ).

6. The present appeals belong to the second category.

7. In Satpal Singh s case (supra) this Court proceeded on the footing that provision of Section 95(1) of the old Act is in pari materia with Section 147(1) of the Act, as it stood prior to the amendment in 1994.

8. On a closer reading of the expressions "goods vehicles", "public service vehicle", "stage carrier" and "transport vehicle" occurring in Sections 2(8), 2(25), 2(29) and 2(33) of the old Act with the corresponding provisions i.e. Section 2(14), 2(35), 2(40) and 2(47) of the Act, it is clear that there are conceptual differences. The provisions read as follows :

Old Act :

"2(8) "goods vehicle" means any motor vehicle constructed or adapted for use for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers;"

"2(25) "public service vehicle" means any motor vehicle used or adapted to be used for the carriage of passengers for hire or reward, and includes a motorcab, contract carriage, and stage carriage;"

"2(29) "stage carriage" means a motor vehicle carrying or adapted to carry more than six persons excluding the driver which carries passengers for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey;"

"2(33) "transport vehicle" means a public service vehicle or a goods vehicle;"

New Act :

"2(14) "goods carriage" any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods;"

"2(35) "public service vehicle" means any motor vehicle used or adapted to be used for the carriage of passengers for hire or reward, and includes a maxicab, a motorcab, contract, and stage carriage;"

"2(40) "stage carriage" means a motor vehicle constructed or adapted to carry more than six passengers excluding the driver for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey;"

"2(47) "transport vehicle" means a public service vehicle, a goods carriage, an educational institution bus or a private service vehicle;" (Underlined for emphasis)

9. "Liability" as defined in Section 145(c) of the Act reads as follows:

" `Liability wherever used in relation to the death of or bodily injury to any person, includes liability in respect thereof under Section 140;"

10 Third party risks in the background of vehicles which are subject-matter

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2003 Supreme(SC) 844

VERY IMPORTANT POINTThe insurer is not liable to pay the compensation under the Motor Vehicles Act, 1988 for the death or bodily injury to a person travelling in goods vehicle as passenger.

Cases Referred (3)

VERY IMPORTANT POINT
The insurer is not liable to pay the compensation under the Motor Vehicles Act, 1988 for the death or bodily injury to a person travelling in goods vehicle as passenger.