IN THE HIGH COURT OF KERALA AT ERNAKULAM
Shoba Annamma Eapen,J
National Insurance Co. Ltd. – Appellant
Versus
Ummalimma (Deceased, Lr's Recorded) – Respondent
JUDGMENT :
SHOBA ANNAMMA EAPEN, J.
This appeal has been filed by the third respondent insurer in OP(MV) No.463 of 2008 on the file of the Motor Accidents Claims Tribunal, Kasaragod, challenging the liability to pay compensation awarded to the claimants for the death of the deceased Ibrahim Haji. The respondents 1 to 8 herein were the claimants; and respondents 9 &10 herein were the respondents 1 & 2 before the tribunal.
2. The case of the claimants was that on 13.07.2008, while the deceased along with his family members was travelling in a car bearing Reg.No.KA-12N-9927 driven by the first respondent in a rash and negligent manner, the car overturned twice or thrice, whereby the deceased sustained fatal injuries and succumbed to the injuries on the way to hospital. The claimants, being the legal heirs of the deceased, approached the tribunal claiming a total compensation of Rs.2,50,000/-.
3. Respondents 1 and 2, the driver and owner of the offending vehicle respectively, remained ex parte before the tribunal. The third respondent insurer filed a written statement, admitting the policy coverage for the offending vehicle, but disputing the liability and quantum of compensation claimed. B
National Insurance Co. Ltd. v. Balakrishnan & Another
An 'act only' insurance policy does not cover gratuitous passengers, thus the insurer is not liable for compensation.
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....
Insurers can be directed to pay compensation for gratuitous passengers if additional premiums are paid, despite an Act only policy limiting liability.
An 'Act only policy' does not cover the risk of bodily injury to non-fare paying passengers unless the requisite premium is paid to cover their risk.
Liability of insurers for gratuitous passengers in goods vehicles established through the 'pay and recover' principle.
Insurers are not liable for gratuitous passengers in goods vehicles as they are not covered under policy terms, affirming the 'pay and recover' principle.
The main legal point established in the judgment is that a 'Statutory Policy' under the Motor Vehicles Act, 1988, only covers death or bodily injury of a third party falling within the sweep of Secti....
The Insurance Company to pay compensation and recover it from the insured. However, these decisions were rendered in cases falling within sweep of Section 149 of Act ? cases involving violation of po....
Liability of the insurance company under an 'act only policy' does not cover the risk of the occupants of the vehicle.
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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