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2010 Supreme(Online)(KER) 21121
HIGH COURT OF KERALA
M.N.KRISHNAN, J
THE ORIENTAL INSURANCE CO.LTD – Appellant
Versus
SIRAJUDHEEN – Respondent
MACA/233/2007
SRI.VPK.PANICKER
Insurance companies are not liable for claims from non fare paying passengers unless explicitly covered under the policy terms.
Headnote:
Insurance - Liability - Motor Vehicles Act - Section 147 - The court upheld the tribunal's decision that the insurance policy does not cover non fare paying passengers, exonerating the insurance company from liability.
Fact of the Case:
A minor petitioner, traveling in a goods vehicle, was injured in an accident. The tribunal awarded compensation, but the insurance company appealed, arguing the petitioner was not covered under the policy.
Finding of the Court:
The tribunal correctly found the petitioner was not traveling as an owner or representative of the goods and thus was not covered by the insurance policy. The court upheld this finding.
Issues: Whether the insurance company is liable for compensation in a case involving a non fare paying passenger who is not covered by the insurance policy.
Ratio Decidendi: The court reinforced the conclusion that the insurance policy's terms do not extend coverage to non fare paying passengers, consistent with precedent.
Final Decision: The appeal is allowed; the insurance company is exonerated from liability.
J U D G M E N T
This appeal is preferred against the award of the Claims Tribunal, Kozhikode in OP(MV)No.1874/1997. The minor petitioner, who was travelling in a goods vehicle, sustained injuries in a road accident and the tribunal has awarded him a compensation of Rs.26,250/= and directed the insurance company to deposit the amount and to get it reimbursed from respondents 1 and 2. It is against that decision, the insurance company has come up in appeal.
2. The tribunal on a consideration of the materials found that the claimant (minor) was not a person who was travelling as owner of the goods or representative of the owner of the goods. The tribunal also found that the petitioner is a non fare paying passenger not covered by the insurance policy in the case. The tribunal itself has arrived at a decision that the policy issued to the vehicle does not cover the risk of the claimant. When it is so one cannot expect the claimant to be compensated by the insurance company and to get it reimbursed from the owner and the driver.
2. Since the terms and conditions of the policy does not cover the risk of the petitioner and as the petitioner is not an employee of the owner of the goods or representative of the owner of the goods is not covered under Section 147 of the Motor Vehicles Act and this position is well settled by the dictum laid down by the Supreme Court inNew India Assurance Co. Ltd. v.Asha Rani ( 2003 (1) KLT 165 ). Therefore the insurance company is not liable and it has to be exonerated from the liability.
3. In the result, the appeal is allowed and the award passed as against the insurance company is set aside and the claimant is at liberty to proceed against the owner and driver of the vehicle who are jointly and severally liable for the amount from whom it can be recovered by the claimant.
Disposed of accordingly.
M.N. KRISHNAN, JUDGE.
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