Occupants of a private car are not covered by an Act Only Policy, and therefore, the insurance company cannot be held liable to pay compensation for the occupants' claims.

JUDGMENT

(Prayer:- Civil Miscellaneous Appeal filed under Section 173 of Motor Vehicles Act, 1988, to set aside the order and decree dated 08.11.2008 passed in M.A.C.O.P.No.259 of 2003 on the file of the Motor Accident Claims Tribunal, Principal District Court, Thoothukudi to allow this appeal with cost.)

1.The present appeal has been filed by the insurance company challenging the award passed by the Motor Accident Claims Tribunal, Thoothukudi in MCOP.No.259 of 2003 primarily on the ground of liability.

2. According to the claimants, the deceased Thangaraj was an occupant of an Ambassador Car owned by the first respondent in the claim petition and insured with the second respondent. The lorry belonging to the third respondent and insured with the fourth respondent was driven in a rash and negligent manner and dashed against the Ambassador Car in which the deceased Thangaraj had sustained grievous injuries and later passed away. According to the claim petitioners, the driver of both the vehicles had equally contributed to the said accident. The claimants have prayed for a sum of Rs.7,00,000/- as compensation.

3. The insurance company of the Ambassador Car had filed a counter contending that the accident has happened solely due to the rash and negligent driving on the part of the driver of the lorry. In fact, the driver of the lorry was charge sheeted for the said accident and therefore, they are not liable to pay any compensation.

4. The Tribunal after considering the oral and documentary evidence arrived at a finding that the accident has taken place due to the rash and negligent driving on the part of the driver of both the vehicles. The Tribunal proceeded to fix 50% liability on both the vehicles. The Tribunal further fixed the compensation at Rs.3,00,000/-.

5. The award of the Tribunal is under challenge by the insurance company of the Ambassador Car primarily on the ground that the policy of the Ambassador Car is a Act Only Policy. The deceased Thangaraj was an occupant of the Ambassador Car and therefore, he is not covered under the policy. Hence, the Tribunal was not right in mulcting the liability upon the insurance company of the Ambassador Car also. Hence, he prayed for exonerating the insurance company as far as 50% of the liability is concerned.

6. Per contra, the learned counsel appearing for the 8th respondent in the appeal who is the owner of the Ambassador Car had relied upon the judgment of the Hon''ble High Court of Sikkim in MAC.APP.No.06 of 2021 ( Suresh Khati Vs. Santosh Chetry @Santosh Chettri and others) dated 12.06.2023 and contended that any exclusion clause should be strictly construed in accordance with the statutorily permissible extent. As per Section 147 of the Motor Vehicles Act, the insurance company is liable to indemnify the owner of the offending vehicle and to satisfy the award. The Insurance Company cannot seek exclusion from its liability by contending that it is an Act Only Policy and not a package policy. Hence, he prayed for dismissal of the appeal.

7. I have considered the submissions made on either side and perused the materials available on record.

8. The Tribunal has passed an award holding that the owner and the insurance company of the Ambassador Car as well as the lorry are jointly and severally liable to pay the compensation. Neither the lorry owner nor the insurer of the lorry have challenged 50% of the liability fastened upon them. The owner of the Ambassador Car has also not challenged the award passed against him by the Tribunal holding him liable to satisfy the award. The present appeal filed by the Insurance Company only challenging the indemnification of the owner of the Ambassador Car on the ground that it is a liability only policy. Therefore, the award as against the owner of the Ambassador Car, owner and the insurer of the lorry have become final.

9. The issue now that arises for consideration is whether the insurance company is liable to indemnify the owner of the Ambassador Ca