Back
SUPREME COURT OF INDIA
Hemant Gupta, Vikram Nath, JJ.
Mohana Krishnan S – Appellant
Versus
K. Balasubramaniyam & Ors. – Respondents
Petition(s) for Special Leave to Appeal (C) No(s). 3433 of 2020
Decided On : 25-08-2022
Insurance - Pillion Rider - Indian Motor Tariff Endorsement No. 70 - 2006 (4) SCC 404, 2008 (7) 428 - The court discusses the liability of the insurance company towards the pillion rider on a motorcycle and the interpretation of 'third party' under the Indian Motor Tariff Endorsement No. 70.
Fact of the Case:
The court granted leave to consider the question of law regarding the liability of the insurance company towards the pillion rider on a motorcycle.
Finding of the Court:
The court found that the question of whether the third party includes all other persons other than the insured and the insurer needs authoritative determination and thus referred the matter to a larger bench.
Issues: Interpretation of 'third party' under Indian Motor Tariff Endorsement No. 70
Ratio Decidendi: The court's decision was based on the need for authoritative determination of whether all other persons who are neither the insured nor the insurer will be considered as third party and covered by the 'Act Only' policy.
Final Decision: The matter was referred to a larger bench for authoritative determination of the question of law regarding the liability of the insurance company towards the pillion rider on a motorcycle.
ORDER
1. Leave granted.
2. Learned counsel for the insurance company relies upon two judgments of this Court reported as 2006 (4) SCC 404 and 2008 (7) 428 to contend that a pillion rider on a motorcycle is not a third party, therefore, the insurance company is not liable to indemnify the insured on account of the injuries or death of such pillion rider.
3. The basis of the said argument is Indian Motor Tariff Endorsement No. 70, which is to the effect that in 'Act Only' policy, the insured has to pay extra premium to cover the pillion rider.
4. However, the question as to whether the third party includes all other persons other than the insured, who is the first party and the insurer, who is the second party. Therefore, all other persons who are neither the insured nor the insurer will be third party and will be covered by the Act Only policy, we have prima facie reservation about the view expressed. Such question is required to be determined authoritatively.
5. Therefore, the Registry to place the matter before Hon'ble The Chief Justice of India to constitute a larger bench to consider the question of law as mentioned above by an appropriate Bench.
The central legal point established in the judgment is the need for authoritative determination of the interpretation of 'third party' under the Indian Motor Tariff Endorsement No. 70.
The main legal point established in the judgment is that the risk of the pillion rider cannot be covered under the 'Act Only Policy' without any extra premium.
An Act policy under the Motor Vehicles Act, 1988 does not cover the risk of death or bodily injuries to gratuitous passengers, such as pillion riders.
A comprehensive insurance policy can cover risks to occupants, including pillion riders, challenging the notion of 'Act Only Policies'.
An 'act only policy' does not cover the risk of a pillion rider, and the liability for compensation in such cases is joint and several, with the insurance company of the other vehicle being held liab....
The main legal point established in the judgment is that the insurance company is liable to indemnify the insured for the death or bodily injury to any person, including the pillion rider, as per the....
Statutory act-only insurance policies do not cover risks to gratuitous passengers, limiting insurers' liability.
Insurance Company would not be liable to pay compensation to the pillion rider.
A comprehensive/package insurance policy covers the liability for a pillion rider, contrary to the tribunal's finding that treated the rider as a third party.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
