K.K. Usha, J.

The question that arises for consideration in this appeal is whether passengers in private vehicle carried not for hire or reward are covered by an insurance policy issued in terms of the provisions contained under S.147 of the Motor Vehicles Act, 1988. The Motor Accidents Claims Tribunal, Perumbavoor following a bench decision of this Court in United India Insurance Co. Ltd. v. Appukuttan (1995 (1) KLT 807), took the view that such a policy, which is usually referred as an'Act policy', would cover such gratuitous passengers. After admitting the appeal a Bench of this Court referred the matter for consideration of a larger bench doubting the correctness of 1995 (1) KLT 807.

2. In an accident happened on 8.2.91 by way of collision between a tempo van and a jeep the 1 st respondent who was a passenger in the jeep sustained injuries. He filed O.P. (MV) No. 1045/91 before the Motor Accidents Claims Tribunal, Perumbavoor claiming compensation to the extent of Rs. 50,000/-. The appellant who was the insurer of the jeep at the time of the accident was impleaded as 5th respondent. The Tribunal granted an amount of Rs. 12,500/- as compensation to the petitioner and t