IMPORTANT POINT
The insurance policy must explicitly state the coverage terms, and any ambiguity will be interpreted against the insurer. Additionally, compensation for motor vehicle accidents must adhere to established legal precedents regarding loss of dependency and related damages.

JUDGMENT :

Rajnesh Oswal, J.

1. This appeal has been filed by the Insurance Company against the judgment and award dated 22.09.2015 passed by the Motor Accidents Claims Tribunal, Jammu (hereinafter to be referred as the Tribunal), in file No. 160/2012, titled, Kanta Devi & Ors. v. Raj Kumar & Ors. by virtue of which compensation of Rs. 24,25,000/- has been awarded in favour of the respondents/claimants along with interest at the rate of 7.5% per annum.

2. The present appeal has been filed by the appellant/Insurance Company primarily on the ground that as per the policy of insurance, the appellant had undertaken the liability to cover the risk of one driver under the Workmen Compensation Act for driving the offending tractor but the risk of any other person either in the capacity of labourer or passenger on the said tractor was not covered. It is further stated that the learned Tribunal has passed the impugned award against the law and facts, as from the evidence available on record, it is crystal clear that on the date of accident, the deceased was travelling while sitting on the mudguard of the tractor involved in the accident, that was driven by Raj Kumar. Sitting on the mudguard is against the policy of insurance, as in the tractor, except the driver seat, there is no other provision for sitting on the tractor. It is further submitted that the learned Tribunal has committed a serious illegality by returning an erroneous finding that the deceased being a labourer travelling on a tractor was covered under section 147 of the Motor Vehicle Act. It is further stated that the compensation awarded is on the higher side.

3. Mr. Sanjay Dhar, Learned Counsel for the appellant vehemently argued that the Insurance Company has been wrongly saddled with the responsibility as the deceased was travelling as gratuitous passenger and only risk of driver was covered under the Policy under Workman Compensation. He further argued that the learned Tribunal has wrongly read the evidence of the witness DW Shiv Kumar Gupta that he has admitted that the death of the deceased is covered under the policy for third party risk. He placed reliance upon the judgment of Karnataka High Court in Oriental Insurance Co. v. Smt. Shobha reported in 2012 ACJ 2297, full bench Judgment of Karnataka High Court reported in 2021 ACJ 2588.

4. Mr. Ankesh Chandel, learned counsel for the respondents/claimants vehemently argued that the deceased was working as labourer and the appellant had received the premium for one Employee for workman compensation and as such the risk of labourer was covered under the policy. He placed reliance upon the judgment of Karnataka High Court in Sri K. Mallappa v. Lalithamma & Ors. bearing No. MFA 3796/2016 decided on 30.03.2016.

5. Heard and perused the record.

6. The facts necessary for disposal of the present appeal are that the claimants/respondents filed a claim petition for grant of compensation on account of death of deceased-Baldev Raj in a vehicular accident on 29.04.2012 at 2.00 PM involving tractor bearing registration No. JK21-9233. Respondent No. 1 is the widow, respondent Nos. 2 to 4 are the children and respondents 5 to 6 are the parents of the deceased. In the claim petition, it was stated that the deceased was sitting on the said tractor while it was on its way from Nud to Paper Morh Samba and when it reached near Paper Morh, the tractor turned turtle due to which the deceased Baldev Raj died on spot. It was also stated that he was working as a labourer with the said tractor.

7. Notices were issued to the appellant, driver and owner of the offending tractor, however, only appellant filed the response to the said claim petition and on the basis of pleadings of the parties, the following issues were framed:

“1. Whether an accident took place on 29.04.2012 near Paper Morh Samba by rash and negligent driving of the tractor bearing registration No. JK21-9233, by its driver respondent No. 1, as a result of which the deceased Balde