1. The appellant insurer has assailed the award dated 3.5.2008 passed in Claim Case No. 7 of 2006 by the Additional Motor Accidents Claims Tribunal, Bilaspur (henceforth 'the Tribunal') whereby in a death case liability to pay compensation of Rs.2,16,000 has been fastened upon the appellant insurer.

2. Admittedly, on 5.7.2002 motor cycle No. CG 10 - B 0264 (henceforth 'the motor cycle') owned and driven by the deceased Bisahuram and insured by the appellant insurer, met with an accident in which one Arjunkant, a pillion rider on the said motor cycle died. The widow and two minor children of the deceased filed application under S.166 of the Motor Vehicles Act (hereinafter referred to as ' the Act' ) before the Tribunal on the ground that since the vehicle was insured, liability to pay compensation would rest squarely on the insurer. The appellant insurer pleaded, inter alia, that risk of the pillion rider not having been covered by the appellant insurer under the policy, it was not liable to pay any compensation. It was further pleaded that driver of the motor cycle, i.e., Bisahuram Sahu did not possess a valid driving licence on the date of accident.

3. The Tribunal fastened the li