IMPORTANT POINT
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.

JUDGMENT :

Nupur Bhati, J.

1. The instant misc. appeal has been filed by the appellant/non-claimant No.3 under Section 173 of the Motor Vehicle Act, 1988 (‘the Act of 1988’) against the judgment and award dated 25.11.2022 passed by learned Judge, Motor Accident Claims Tribunal, Kuchaman City, District Nagaur in Claim Case No.51/2022, whereby the learned Tribunal partly allowed the claim petition of the claimants/respondents No.1 and 2 and awarded compensation of Rs.4,88,000/- along with interest @ 5.50% p.a.

2. Brief facts of the case are that the deceased, Fula Devi was traveling in the insured jeep bearing number RJ-37-UA-2483 on 04.05.2013 at 7:00 PM, from Meethdi to Thathana when she fell down due to the rash and negligent driving of the respondent no. 1/driver, and received injuries, on account of which she died subsequently. Thereafter, a claim was filed before the learned Tribunal under Section 166 and 140 of the MV Act, and a sum of Rs.24,04,000/-.

3. In response to the said claim, respondent no. 1 and 2/driver and owner of the offending vehicle respectively negated the occurrence of any such accident on 04.05.2013 and alternatively stated if at all, any liability arises, it would fall upon the appellant-Insurance Company with which the offending vehicle had been insured. Appellant-Insurance Company, in its reply to the Claim petition took a preliminary objection that the deceased was traveling as an unauthorised passenger in the offending vehicle, for whom no premium had been charged by the appellant-Insurance Company and thus, no liability accrues upon the appellant-Insurance Company.

4. After hearing the parties, learned Commissioner framed four issues including :

5. During the course of the proceedings, the respondents/claimants no. 1 and 2 examined A.D. 1 Lalu Ram and A.D. 2, Ganesh Ram and exhibited 12 documents in support of their claim. Appellant-Insurance Company examined N.A.D 1, Rakesh Solanki and produced the Insurance Policy (N.A.1) in favour of the appellant-Insurance Company and on the basis of the same, the learned Tribunal, Kuchaman City, vide judgment/award dated 25.11.2022 awarded a sum of Rs.4,88,000/- @ 5.50% p.a.

6. Thus, aggrieved of the award passed by the learned Tribunal, the appellant-Insurance Company has preferred this appeal.

7. Learned counsel for the appellant submits that the learned Tribunal has erred in imposing the liability upon the Insurance Company inasmuch as the Insurance Policy clearly stipulates that the offending Vehicle had been insured under a “Private Car Liability Only Policy” which does not cover the risk of third party risk of an “occupant” in a car. For the purpose of the same, he also relied upon the judgment passed by the Hon’ble Apex Court in the case of National Insurance Company Limited v. Balakrishnan reported in 2013 (1) SCC 731.

8. Learned counsel for the appellant also submits that the learned Tribunal has erred in misreading the nature of the policy based on the phrase “Total Package Premium” under the head of 'Premium Details' and based on this conjecture, came to a finding that the Insurance Policy was a “Package Policy” and held the appellant-Insurance Company liable to pay compensation to the respondents/claimants on account of the death of the deceased who was traveling as an occupant in the offending vehicle on the date of the accident. He also submitted that no premium was charged for the passengers sitting in the offending vehicle and therefore, under the Act only policy, the appellant-Insurance Company cannot be held liable. For the purpose of the same, he placed reliance upon the judgment passed by this Court in the case of HDFC ERGO General Insurance Company Ltd. v Rajbala [S.B. Civil Misc. Appeal No. 2207/2017 decided on 08.08.2024].

9. Learned counsel for the appellant-Insurance Company also placed reliance upon the judgment passed by the Coordinate Bench of this Court in the case of Oriental Insurance Company Limited v. Sharda Devi [S.B. Civil Misc. Appea