(2). The question that arises in this batch of appeals is whether the insurer is liable to pay compensation to the dependants of the deceased-passenger, while the deceased-passenger was travelling in a goods vehicle and that vehicle met with an accident, on account of which the passenger died or suffered bodily injury. Originally, when the bunch of appeals was being heard, a bench of this Court by order dated 27.3.2001, came to the conclusion that an the appeals fall in three categories - category (i) being those cases which are covered by the provisions of Motor Vehicles Act, 1939; category (ii) are the cases which are covered by the Motor Vehicles Act, 1988, prior to the amendment of 1994; category (iii) are those cases which fall after the amendment of 1994. When the matters were finally heard, a bench delivered judgment in respect of cases under category (i) and (iii) above on 17.8.2001. But so far as cases falling under category (ii) namely which are covered under the Motor Vehicles Act, 1988, prior to its amendment in 1994, it was felt that the decision of the Court in Satpal Singhs (1) case, requires reconsideration by a larger bench and that is how this bunch of appeals had been placed before a three Judge bench. This, in turn, necessitates interpretation of the provisions of Sec. 147 of the Motor Vehicles Act, 1988 (herein after referred to as `the Act) as it stood prior to its amendment in 1994. It may be stated that the provisions of Sec. 147 of the Act correspond to Sec. 95 of the Motor Vehicles Act, 1939.

(3). Before considering the rival submissions, it would be appropriate to notice the provisions of Sec. 95 of the Motor Vehicles Act, 1939, Sec. 147 of the Act as it stood prior to its amendment of 1994 and the provision as it stands now after the amendment of 1994.

(4). Section 95 of the Motor Vehicles Act, 1939 reads as under:-

95. Requirements of policies and limits of liability.–(1) In order to comply with the requirements of this chapter, a policy of insurance must be a policy which-

(a) is issued by a person who is an authorized insurer or by a co-operative society allowed u/Sec.108 to transact the business of an insurer, and

(b) insures the person or classes of persons specified in the policy to the extent specified in the policy to the extent specified in sub-sec.(2)-

(i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place;

(ii) against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place;

Provided that a policy shall not be required-

(i) to cover liability in respect of the death, arising out of and in the course of his employment, of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising out of and in the course of his employment other than a liability arising under the Workmens Compensation Act, 1923 (8 of 1923), in respect of the death of, or bodily injury to, any such employee-

(a) engaged in driving the vehicle, or

(b) if it is a public service vehicle, engaged as a conductor of the vehicle or in examining tickets on the vehicle, or

(c) if it is a goods vehicle, being carried in the vehicle, or

(ii) except where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment to cover liability in respect of the death of or bodily injury to persons being carried in or upon or entering or mounting or alighting from the vehicle at the time of the occurrence of the event out of which a claim arises, or

(iii) to cover any contractual liability.

Explanation.–For the removal of doubts, it is hereby declared that the death of or bodily injury to any person or damage to any property of a third party shall be deemed to have been caused by

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