A package insurance policy covers the risk of pillion riders, and compensation must be reassessed based on appropriate income and multipliers.

JUDGMENT

The appellants are the petitioners in O.P(M.V) No.1550/2004 on the files of the Principal Motor Accidents Claims Tribunal, Kozhikode. The said claim petition was submitted by them seeking compensation for the death of one 'Muhammed Basheer' due to the injuries sustained in a motor accident that occurred on 10.02.2004. The deceased was the husband of the 1st appellant, the father of the appellants 2 and 3, and the son of the 4th and

5th appellants.

2. The accident occurred when he was pillion riding on a motorcycle, the said motorcycle hit on a parked autorickshaw due to the rash and negligent riding of the 1st respondent. The motorcycle was owned by the 1st respondent himself and was insured with the 2nd respondent. The deceased was working as a Supervisor in an Engineering company with a monthly income of Rs.6,350/- and he was 33 years old at the time of the accident.

The compensation was claimed in such circumstances.

3. The 2nd respondent resisted the claim by filing a written statement. Even though they admitted the existence of an insurance policy for the motorcycle, they raised a contention that the policy does not cover the risk of a pillion rider as the insured had not paid any additional premium for the same. The quantum of compensation was also disputed by them.

4. The evidence in this case consists of Exts.A1 to A3 from the side of the appellants and the copy of the policy was marked as Ext.B1. After the trial, the Tribunal came to the conclusion that the accident occurred due to negligence on the part of the 1st respondent. However, it was found that the insured had not paid any additional premium to cover the risk of the pillion rider, and therefore, the insurance company was exonerated from liability. The quantum of compensation was fixed at Rs.2,30,000/-, and the same was to be recovered from the 1st respondent with interest at the rate of 7% per annum from the date of petition till realisation. This appeal is submitted by the appellants in such circumstances challenging the exoneration of the 2nd respondent- insurance company and seeking enhancement of compensation.

5. Heard, Smt. K.V Rashmi, the learned counsel appearing for the appellants and Smt. Dhanya Babu M.B, the learned counsel appearing for the 2nd respondent, insurance company.

6. The first question to be considered is whether the exoneration of the insurance company was proper or not. The specific contention put forward by the learned counsel for the appellants in this regard is that the policy issued was a package policy and, therefore, the same would take in the coverage of the risk of the pillion rider as well. The said contention has to be accepted, as from the Ext. B1 policy, it is discernible that it was a package policy. As per various circulars and directions issued by the IRDAI, when the insurer issues a package policy, the same will cover the risk of the pillion rider carried in the said vehicle as well and therefore, the insurance company cannot take a contention that in the absence of any additional premium, no coverage could be extended to the pillion rider. In such circumstances, I find that, as the policy issued in this case was a package policy, it provides the coverage of the risk of the pillion rider, and the exoneration of the 2nd respondent/insurance company, from the liability by the Tribunal was not proper. Accordingly, the said finding is set aside by holding that the 2nd respondent, being the insurer of the vehicle, is liable to pay the compensation.

7. The next issue to be considered relates to the enhancement of compensation. The learned counsel for the appellants points out that for assessing the compensation for disability, a meagre annual income of Rs.18,000/- was adopted. On perusal of the records, I find force in the said contention. Of course, it is true that, even though the deceased claimed to have been working as a supervisor in a company, no proper ev