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2010 Supreme(Online)(KER) 32358
HIGH COURT OF KERALA
M.N.KRISHNAN, J
NATIONAL INSURANCE COMPANY LTD – Appellant
Versus
THOMAS A.T – Respondent
MACA 2067 2007
SMT.RAJI T.BHASKAR, MR.K.I.ABDUL RASHEED
Pillion riders are gratuitous passengers not covered by act only insurance policies, thus insurance companies cannot be held liable for their injuries.
Headnote:
Liability - Road Accident - United India Insurance Co. Ltd. v. Tilak Singh, 2006 - The court interpreted the liability of insurance under act only policy, concluding that a pillion rider is a gratuitous passenger not covered by such policy, leading to the exoneration of the insurance company.
Fact of the Case:
The claimant, a pillion rider, sustained injuries in a road accident due to the negligence of the rider. The Tribunal found the rider liable and awarded compensation, directing the insurance company to pay despite the rider not being covered under the policy.
Issues: The main issue was whether the insurance company could be held liable for injuries sustained by a pillion rider under an act only policy.
Ratio Decidendi: The judgment clarified that a pillion rider is considered a gratuitous passenger and is only covered under comprehensive policies, thus the insurance company's liability was negated under the current act only policy.
Final Decision: The award directing the insurance company to pay was set aside and the insurance company was exonerated from liability.
J U D G M E N T
Here is a case where the claimant had sustained injuries in a road accident while travelling as the pillion rider. The Tribunal found that the accident took place on account of the negligence of the rider and granted a compensation of Rs.24,600/= to the claimant. It also found that the pillion rider is not covered but ultimately directed the insurance company to pay the amount and recover it from the owner. It is against that decision, the insurance company has come up in appeal.
2. Heard the learned counsel. The short point that arises for determination is regarding the liability of the insurance company. By virtue of the decision of the Supreme Court inUnited India Insurance Co. Ltd. v. Tilak Singh ( 2006(2)KLT 884 ), status of a pillion rider is that of a gratuitous passenger not covered by the policy. But it has been also held that when there is a comprehensive or package policy, the terms and conditions of the policy will cover the risk of the pillion rider. But, admittedly, in this case the vehicle is covered only by an act only policy. Therefore, the decision of the Apex Court inUnited India Insurance Co. Ltd. v. Tilak Singh ( ) will apply in all force to the facts of this case. When the policy does not cover a pillion rider, insurance company cannot be saddled with the liability. Ordinary recovery clause is granted when the company is liable, but there are breach of policy conditions which enables the company to get reimbursement from the insured. As far as this case is concerned, there is no coverage at all and therefore, the insurance policy cannot cover the risk of a pillion rider.
3. Therefore, the award of the Tribunal directing the insurance company to pay the amount and get it recovered from the owner is unsustainable in law and liable to be set aside and I do so.
4. In the result, the MACA is allowed. The insurance company is totally exonerated from the liability and the claimant is given an opportunity to proceed against respondents 1 and 2 jointly and severally for the realisation of the amount.
Disposed of accordingly.
M.N. KRISHNAN, JUDGE cl M.N. KRISHNAN, J.
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A.S.NO.OF 2010 .............................................
2nd day of August, 2010.
J U D G M E N T
