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RAMESHWAR VYAS
United India Insurance Company Limited – Appellant
Versus
Vinod Kanwar – Respondent
JUDGMENT
1. 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.434/2013, whereby, learned Tribunal after exonerating the appellant - Insurance Company from liability to pay compensation 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 deceased Madan Singh 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; Madan Singh and another occupant Narsingh sustained injuries. Madan Singh succumbed to the injuries. Legal heirs of Madan Singh 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 o
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 insurance company under an 'Act Only' policy is not liable for occupant injuries unless the risk is specifically covered by the policy.
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 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....
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....
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.
Liability of the insurance company under an 'act only policy' does not cover the risk of the occupants of the vehicle.
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