JUDGMENT :

1. This appeal under Section 173 of the Motor Vehicles Act, 1988, (for short “the Act”), is preferred by the appellant- M/s.United India Insurance Company Limited, challenging Award dated 10.03.2008 delivered by the Motor Accidents Claims Tribunal-cum-V Additional District Judge (FTC), Anantapur, (for short “the Tribunal”) in O.P.No.397 of 2006 granting compensation to the petitioners/claimants, on account of the death of the deceased-Dasari Bodappa, as prayed in the petition (Rs.2,00,000/-) with costs and interest @ 7.5% per annum thereon from the date of filing of the petition till the date of realization against the respondents 1 to 3 jointly and severally.

2. For the sake of convenience, the parties are hereinafter referred to, as they are arrayed before the Tribunal in the claim petition.

3. The factual context of the case, is as under:

(a) On 01.11.2004 the father of G.Siva Sankar (complainant), namely, G.Krishnappa, who is the uncle of the deceased–Dasari Bodappa, was admitted in Government General Hospital, Anantapur, for treatment due to snake bite in the fields. On information, G.Siva Sankar along with his brother, Siva Kesavulu, proceeded to the hospital in a motorcycle bearing No.AP 02 G 8902 and at that time, Sake Mutyalu (R.1), who is the cousin of Siva Sankar, along with Dasari Bodappa (deceased) who is the pillion rider, were also proceeded to the hospital on the motorcycle bearing No.AP 02 L 3356. At about 7.30 p.m., when they reached near Narigappa chenu after crossing Bathalapalli, on the national high way, R.1-Sake Mutyalu, who is the rider of the motorcycle bearing No.AP 02 L 3356, drove the same in a rash and negligent manner and dashed behind the motorcycle bearing No.AP 02 G 8902, due to impact, R.1-Sake Mutyalu, the deceased-Dasari Bodappa, Siva Sankar and Siva Kesavulu fell down from their respective motorcycles and received bleeding injuries. The deceased-Dasari Bodappa, who was the pillion rider of the motorcycle bearing No.AP 02 L 3356, sustained head injury. All the injured were shifted to the Government General Hospital, Anantapur, for treatment. On the advice of the Doctor, the deceased-Dasari Bodappa was shifted to the Government Hospital, Kurnool and while undergoing treatment, he succumbed to injuries.

(b) The matter was reported to the Police alleging that the accident took place as a result of rash and negligent driving of the rider of the motorcycle bearing No.AP 02 L 3356. Based on the complaint lodged by the complainant-Siva Sankar, a case in Crime No.84 of 2004 was registered by Bathelapalli Police against the accused (respondent No.1 in the O.P.) for the offences punishable under Sections 337 and 338 IPC. After investigation of the case, a charge sheet was submitted before the learned Judicial magistrate of First Class, Dharmavaram, against the accused, who was the rider of the motorcycle bearing No.AP 02 L 3356, for the offences punishable under Sections 337, 338 and 304-A IPC.

(c) The Petitioners 1 and 2 who are the wives and Petitioners 3 to 7, who are minor children of the deceased filed an application claiming compensation of a sum of Rs.2,00,000/- before the Tribunal, on account of the death of the deceased- Dasari Bodappa, in the said road traffic accident.

(d) The 1st & 2nd respondents, who are the driver and owner of the motor cycle bearing No.AP 02 L 3356, did not contest the matter.

(e) The 3rd respondent/Insurance Company, filed a counter contending inter alia that the alleged accident occurred due to the rash and negligent driving of the riders of both the motorcycles and as such, the Insurer/3rd respondent, is not liable to pay the compensation. It is further contended that the deceased was the pillion rider of the vehicle and therefore, the risk of the pillion rider would not cover under the Policy. The Insurer is not liable to pay the compensation and even the c