IMPORTANT POINT
Insurance companies are not liable for employee injuries in vehicles unless additional premiums are paid for coverage under the policy.

JUDGMENT :

(PER : HONOURABLE MR. JUSTICE MAULIK J.SHELAT)

1. The present appeal is filed under section 173 of Motor Vehicle Act, 1988 (herein after referred as MV Act) by the insurance company against the judgement and award dated 16.06.2012 passed by the Motor Accident Claims Tribunal (Auxiliary-I) (hereinafter referred to as ‘the tribunal’), Gandhinagar in Motor Accident Claim Petition (MACP) No. 173 of 2007 holding insurance company liable to pay compensation to the claimants. Parties are referred to as per their original position.

2. Short facts of the case:

2.1 The claimants are widow and children of deceased Rameshchandra, who was travelling in Toyota Qualis car bearing registration number GJ 1 8G 1440 for office work on 13.05.2005, who met with an accident having collided with one truck bearing registration number GJ 12 W 9988, due to which Rameshchandra had sustained serious injuries and succumbed to such injuries. Because of the death of Rameshchandra, his legal heirs have preferred MACP under Section 166 of the MV Act claiming compensation of Rs.30,00,000/- with costs and interest at the rate of 18% per annum from driver, owner and insurance company of car as well as driver and owner of truck as it appears that truck was not insured vehicle. Except opponent No.3- insurance company, other opponents have chosen not to appear and filed their written statement. Opponent No.3 has filed written statement at Exhibit 16, denying its liability to pay compensation. The tribunal has framed issues at Exhibit 24 and after appreciating evidence on record, found driver of Toyota Qualis car negligent to the extent of 80% and driver of truck was found 20% negligent.

2.2 The tribunal has examined documentary and oral evidence led by the claimants and awarded total compensation of Rs.15,50,900/- which carry 9% interest from the date of claim petition, till the date of its realization. So, in view of the aforesaid award passed by the tribunal, the appellant-insurance company was held liable to pay compensation jointly and severally with other opponents.

3. Submissions of the appellant:

3.1 Learned advocate Ms. Karuna Rahevar appearing for the appellant - insurance company would submit that the appellant has challenged the impugned judgement and award by way of present appeal, which is confined only to the aspect of liability of insurance company to pay compensation. She would submit that insurance company of Toyota Qualis Car had issued Liability Only Policy (Act Policy), which was produced at Exhibit 48, wherein statutory risk of occupant travelling in the vehicle was not covered.

3.2 She would further submit that deceased was employee of owner of the car i.e. opponent No. 2 - Director of Developing Caste Welfare and he was travelling during the course of his employment attending office work. She would further rely upon proviso of Section 147(1) of the MV Act. Thereby, submitted that risk of employee travelling in the vehicle owned by employer would not be covered under the policy issued by the insurance company. She would further submit that no additional premium was paid by opponent No. 2 - owner of the car covering the risk of its employee, then in that case, insurance company cannot be held liable to pay compensation.

3.3 She would further submit that despite drawing attention of the tribunal about the insurance policy and the decision of Honorable the Supreme Court and this Court regarding issue germane in this matter, the tribunal has wrongly held insurance company liable to pay compensation.

3.4 She would lastly submit that additional premium of Rs.250/- paid by opponent No. 2 covers personal accident of occupants travelling in car, which is of a fixed amount of Rs.50,000/- for each occupant, as sitting capacity of Toyota Qualis Car is 10 person.

3.5 She has requested this Court to consider the request of insurance company, whereby it may be permitted to place on record copy of terms and conditions of liability only policy being liability