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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Dr. V R K Krupa Sagar, J
Oriental Insurance Co. Ltd., Hyd – Appellant
Versus
S. Kumari Chittoor Dist – Respondent
JUDGMENT :
This Appeal, under Section 173 of the Motor Vehicles Act, 1988, is filed by the insurance company assailing the award dated 25.08.2012 of the learned Chairman, Motor Accidents Claims Tribunal-cum-District Judge, Chittoor (hereinafter referred to as ‘the Claims Tribunal’) in M.V.O.P.No.37 of 2009.
2. Heard arguments of Smt. Medida Manimma, the learned counsel for the appellant-Insurance Company and Ms. C.Jhansi Rani, the learned counsel for respondents/claimants.
3. The following facts are required to be noticed:
A tractor and trailer bearing registration Nos.AP-03-T-3802 and AP-03-T-3803 meant for agricultural operations was carrying coolies in it to attend the agricultural works of groundnut crop which reached Mukkalathur in Chittoor District on 10.10.2007 at 10:30 A.M., but the driver of it failed to take reasonable care and caution and his negligent resulted in accident leading to death of one of the coolies Sri Subramanyam @ Subbaiah. As against the driver of the offending tractor and trailer, Crime No.84 of 2007 was registered by police and a charge sheet was laid before the learned IV Additional Judicial Magistrate of First Class, Chittoor where it was registered as C.
Insurance policies covering third-party liability do not extend to gratuitous passengers; however, the doctrine of 'pay and recover' allows insurers to compensate claimants and recover from the vehic....
Liability of insurers for gratuitous passengers in goods vehicles established through the 'pay and recover' principle.
Insurance companies are not liable to cover occupant risks under 'Act Only' policies as per the Motor Vehicles Act, and cannot be ordered to pay and recover in such cases.
An 'act only' insurance policy does not cover gratuitous passengers, thus the insurer is not liable for compensation.
The central legal point established in the judgment is that the liability of an insurance company under a 'liability only policy' and the application of the doctrine of 'pay and recovery' depend on t....
Insurance policies classified as 'Act Only Policy' can still invoke 'Pay and Recover' under applicable legal precedents, establishing liability for compensation despite non-payment of premium for occ....
Insurers can be directed to pay compensation for gratuitous passengers if additional premiums are paid, despite an Act only policy limiting liability.
The main legal point established in the judgment is that the Insurance Company cannot be held responsible for the compensation of unauthorized passengers in a goods vehicle when the risk is not cover....
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