( 1 ) THE only question for consideration in all these appsals is where passengers are carried for hire or reward in a Lorry and the contract of insurance does not provide for such carriage, is the liability covered by the act policy in case of death or bodily injury to the passengers and the insurer is liable to pay compensation?

( 2 ) THE facts are not in dispute. Vehicles involved are Lorries and passengers are carried for hire. A lorry is indisputably a goods vehicle as per the definition contained in Section 2 (8) which reads as under:"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. "section 42 emphasizes the necessity for a permit for every transport vehicle. It says that no transport vehicle shall be used in any public place except in accordance with a permit granted by the concerned transport authority. "transport Vehicle" is defined as public service vehicle or a goods vehicle. Thus it is seen that the lorry is a transport vehicle which requires a permit for use in a oublic place. The vehicle being a Lorry, the permit authorises its use only for the carriage of goods.

( 3 ) RULE 277 of the A. P Motor Vehicles Rules permits the carriage of 6 persons in all in addition to the driver in any goods vehicle. Rule 277 (2) says that no person shall be carried upon the goods. Rule 277 (3) which was introduced in 1983 provides that no person other than a person connected with the conveyance of goods shall travel in a goods vehicle Rule 277 (5) specifies that no person shall be carried for hire or reward in any goods vehicle unless the vehicle is covered by a permit authorising the use of the vehicle for such purpose, and in accordance with the provisions of such permit. Thus it is plain that no passenger shall be carried for hire or reward in a goods vehicle. Rule 277 (1) no doubt authorises the carriage of 6 par-ons ; but they must be passengers connected with the conveyance of goods. This position is made clear by Rule 277 (3 ). Even prior to the introduction of this sub-rule, the position was the same. Sub-rule (3) of Rule 277 has only made the position clear.

( 4 ) IN this back ground, let us examine the provisions relating to insurance of vehicles.

( 5 ) SECTION 94 (1) directs that no person shall use except as a passenger or allow any other person to use a motor vehicle in public place unless there is in force in relation to the use of the vehicle a policy of insurance. Section 95 deals with the requirement of policies and the limits of liabilities.

( 6 ) SECTION 95 reads as follows:"95. Requirements of policies and limits of liability: (1) In order to comply with Ihe requirements of this chapter, a policy of insurance may be a policy which (a) is issued by a person who is an authorised insurerand (b) insures the person or classes of persons specified in the policy to the extent specified in sub-section (2) (i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person or damage to any property of a third party caused by or arising out of the vehicle in a public place: (ii) against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of, the use of the vehicle in public place. Provided that a policy shall not be required (i) to cover liability in respect of the death, arising out of and in the course of his employment, of the employees of a person insured by the policy or in respect of bodily injury sustained by such an employee arising out of and in the course of his employment, (other than a liability arising under the Workmen s compensation Act, 1923) (8 of 1923), in respect of the death of, or bodily injuty to, any such employee (a) engaged in driving the vehicle; or (b) if it is a public service vehicle, engaged as a conductor of the vehi