Insurance coverage for passengers in goods vehicles is limited under the Motor Vehicles Act; liability lies with driver and owner if unauthorized.

1. Whether the claim in respect of a person who was travelling in a tractor - trolley is liable to be covered by the insurer of the vehicle under a policy issued in terms of S.147 of the Motor Vehicles Act, 1988, is the question mooted in this appeal preferred by the insurer of the offending vehicle.

2. The sequence of events reveals that the deceased by name Sukdei Kurram was travelling on 30.4.2011 in a tractor - trolley (bearing registration No. CG 17 - G 2943 / CG 17 - G 2944) driven by the respondent No. 3, owned by the respondent No. 4 and insured with the appellant. When the vehicle reached the place of occurrence, because of rash and negligent driving, the tractor - trolley overturned causing fatal injuries to the traveller, ultimately leading to her death, which was sought to be compensated by filing the claim petition preferred by her parents before the Tribunal. It was contended that deceased was having a monthly income of Rs. 3,000 and the compensation was sought to be fixed accordingly.

3. The claim was resisted on the part of the respondents and in particular, by the insurer, contending that the claim was not liable to be sustained as against insurer insofar as the deceased was travelling in the offending vehicle as a gratuitous passenger. It was also pointed out that the vehicle was not a passenger carrying vehicle and that the policy issued was for 'agricultural purpose' and it was never intended to carry any passenger, nor had the insurer collected any premium under this head, besides pointing out that tractor - trolley was having only one seat, exclusively meant for the driver.

4. On completion of the trial, the Tribunal held that the accident was because of negligence on the part of the driver. After considering the notional income and adopting the multiplier of 18, the loss of dependency was worked out as Rs. 3,24,000. A sum of Rs. 5,000 each was awarded under three heads, i.e., loss of love and affection, funeral expenses and loss of estate and the total compensation was fixed as Rs. 3,39,000. This was directed to be satisfied with interest at the rate of 6 per cent as specified. Observing that there was a valid policy and no violation of policy condition was established, the liability came to be mulcted upon the shoulders of the insurer, the appellant herein, and hence the challenge.

5. We heard the learned counsel for the appellant insurance company as well as the learned counsel for the respondent Nos. 3 and 4 / driver and owner.

6. There is no dispute as to the nature and type of vehicle involved, which is 'tractor - trolley'. Admittedly, there is only one seat on the tractor, which is exclusively for the driver. Nobody else is intended to be carried on the tractor or in trolley, but for carrying goods for agricultural purpose (in the trolley). Whether the risk of a person travelling in any goods vehicle could be covered under the policy issued in terms of S.147 of the Motor Vehicles Act, 1988 had come up for consideration before the Apex Court in New India Assurance Co. Ltd. v. Asha Rani , 2003 ACJ 1 (SC). Overruling the decision rendered by the Apex Court in New India Assurance Co. Ltd. v. Satpal Singh , 2000 ACJ 1 (SC), it was categorically held that no passenger is entitled to travel in a goods carriage except in the capacity as the owner / representative of the owner of goods carried in the vehicle or as the employee of the insured.

7. The Apex Court has made it clear, as per the decision reported in National Insurance Co. Ltd. v. Cholleti Bharatamma , 2008 ACJ 268 (SC), that if at all the authorised person (owner / representative of the owner of goods or employee of the insured) is travelling in the goods vehicle, he has to be in the 'cabin' of the vehicle, d