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RAMESHWAR VYAS
United India – Appellant
Versus
Narsingh Tanwar – Respondent
JUDGMENT
Rameshwar Vyas, J. - The instant appeal under Section 173 of the Motor Vehicles Act, 1988 (Afterwards referred as ?the Act?) has been filed by the appellant ? Insurance Company being aggrieved against the impugned order dated 26.12.2021 passed by the Motor Accident Claims Tribunal, Bikaner (Afterwards referred as ?Tribunal?) in MAC No.202/2014, whereby, learned Tribunal directed the Insurance Company to first pay the amount of compensation awarded and then recover the same from driver & owner of the vehicle.
2. Brief facts of the case are that injured Nar Singh Tanwar was occupant in a car being registration No. RJ07-CA-0237. On account of rash and negligent driving by the driver of the Car, the car turned turtle; Nar Singh Tanwar sustained injuries and another occupant Madan Singh died. Nar Singh Tanwar filed a claim petition before learned Tribunal.
3. The claim petition, inter alia, was contested by the appellant ? Insurance Company on the ground that the Car was insured by it in the ?Act Only? policy; the Insurance Company did not charge any premium for covering the risk of occupant of the Car.
4. Learned Tribunal while accepting the plea of the insurer held that the Insu
An insurance company under an 'Act Only' policy is not liable for occupant injuries unless the risk is specifically covered by the policy.
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.
The main legal point established in the judgment is the application of the principle of 'pay and recover' in specific circumstances and the exercise of plenary powers under article 142 of the Constit....
An insurance policy labeled as 'Private Car Liability Only' does not cover occupants unless a premium is charged for their risk, thus limiting the insurer's liability.
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....
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....
The main legal point established in the judgment is that under an 'act only' policy, the insurance company's liability does not extend to covering the risk of the pillion rider, as per the interpreta....
Insurance companies are not liable to indemnify claims for gratuitous passengers in goods vehicles under the Motor Vehicles Act, 1988, as their risks are not covered by statutory insurance policies.
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