An insurance company is not liable to pay compensation for an accident involving a vehicle that is being used in a manner that is not permitted by the insurance policy and where the transfer of ownership of the vehicle has not been notified to the insurance company.

G. R. Majithia, J.

1. This order will dispose of F. A. O. Nos.961, 962, 963, 964, 965, 831, 854, 884, 885 and 886 of 1987 filed by the claimants. There is no dispute about the accident and the manner in which it has taken place. The claimants counsel could not raise any meaningful argument for enhancement of compensation. The only dispute is whether the insurance company can be held liable for payment of the compensation awarded to the claimants. In order to appreciate the legal point in issue, it is necessary to state a few facts. THE FACTS

2. On May 19, 1986, Bhira deceased along with other members of his family, namely, Ram Phal, Jagdish, Pala and Om Parkash, was standing on the bus stand, Sekhupura on Karnal-Assandh Road. They were waiting for a bus for going to village Ranwar where they had to attend a marriage party. The bus service was disturbed on that day as a result of the strike. A truck bearing registration No. RJI 1506 came from the Assandh side. Bhira and other members standing on the roadside signalled it to stop for a lift. The truck driver Mohinder Singh agreed to give them a lift on payment of Rs.200/-. When the truck reached near village Charao, it went out of control of the driver and overturned in a kacha pond in front of village Charao. Bhira and others received multiple injuries. Bhira, Jagdish, Ram Phal, Harbhajan Singh and Mahlu succumbed to their injuries in the hospital. The legal heirs of the deceased filed applications for compensation under Sec.110-A read with Sec.92-A of the Motor Vehicles Act (for short the Act ). The driver, National Insurance Co. Ltd. and the owner were made parties to the petitions.

3. The Motor Accidents Claims Tribunal on evidence found that the accident took place as a result of rash and negligent driving of the vehicle by driver Mohinder Singh at the relevant time. He also found that Bhira, Ram Phal, Jagdish, Harbhajan Singh and Mahlu died as a result of rash and negligent driving of the ill-fated truck by the driver. He also found that the offending vehicle was owned by Mam Raj, respondent No.6, in F. A. O. No.961 of 1987. Mam Raj transferred the ownership by an affidavit dated May 14, 1986 to Baldev Raj, The accident took place on May 19, 1986. The transferee did not notify the transfer of ownership of the vehicle to the insurance company. He also did not get the insurance policy transferred in his name. Resultantly the insurance company is not liable to pay the compensation. He also found that the insurance policy, Rxh. R-1, did not permit carriage of passengers on the truck. He allowed compensation to the claimants payable only by driver Mohinder Singh and owner Baldev Raj jointly and severally. Mohinder Singh driver has not challenged the award.

4. The learned Counsel for the owner of the vehicle contended that the insurance company is liable for the payment of the compensation amount. The insurer is liable to discharge liability which is covered by the policy of insurance or under the statutory provisions pursuant to which the policy was issued. The learned Tribunal correctly found that the insurance company is not liable to pay the compensation amount. In the insurance policy, there is a specific provision that passengers cannot be carried in a goods carrier. The case will fall in the exclusion clause under Sec.96 (2) (b) (i) of the Act. Thus the conclusion arrived at by the Tribunal that the insurance company is not liable is unassailable.

5. The matter can be viewed from another angle also. The ill-fated truck was insured by its original owner with the insurance company. It was transferred by the original owner on May 14, 1986 and the accident took place on May 19, 1986. There is no evidence on record that any intimation was given either by the original owner or by the purchaser to the insurance company that the transfer has taken place and that the insurance policy be transferred in the name of the purchaser. The intimation regarding purchase had to be g