2025 Supreme(Online)(P&H) 8552
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J
Padam – Appellant
Versus
Gulab Singh – Respondent
FAO-775-2012
For the Appellants/Petitioners: Digvijay
For the Respondents: Tarranum Madan, Swatantar Kapoor
A comprehensive or package insurance policy for a two-wheeler vehicle covers the risk of a pillion rider, making the insurance company liable to indemnify the insured against claims for compensation arising from injuries or death of such pillion rider.
Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Comprehensive/Package Insurance Policy - Coverage of Pillion Rider - Liability of Insurance Company - Insurer is liable to pay compensation for injury or death of a pillion rider if the vehicle is covered under a comprehensive/package insurance policy. (Paras 15, 16, 17)
Facts of the case:
The appellant-owner challenged an award passed by the Motor Accident Claims Tribunal which fastened the liability to pay compensation of Rs. 70,000/- to a pillion rider on the owner, despite the existence of an insurance policy. The owner contended that the policy was comprehensive and therefore covered the risk of the pillion rider.
Findings of Court:
The Court observed that pursuant to the legal position settled by the Supreme Court, a comprehensive/package insurance policy for a two-wheeler covers the risk of a pillion rider. The Court concluded that the insurance company is liable to satisfy the award and set aside the recovery rights granted to the insurer.
Issues: Whether a comprehensive insurance policy covers the risk of a pillion rider, thereby making the insurance company liable for compensation.
Ratio Decidendi: Following the precedent that circulars of the Tariff Advisory Committee and IRDA indicate that comprehensive/package policies are intended to cover the liability of occupants/pillion riders, the insurance company cannot disclaim liability when the policy is comprehensive.
Result: Appeal allowed.
| Table of Content |
|---|
| 1. procedural history and factual background of the motor accident claim. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. arguments regarding insurance policy coverage for pillion riders. (Para 7 , 8 , 9 , 10 , 11 , 12) |
| 3. legal interpretation of comprehensive policies under motor vehicles act. (Para 13 , 14 , 15 , 16 , 17) |
| 4. final determination of liability of the insurance company. (Para 18 , 19 , 20 , 21) |
..Appellant
Versus
GULAB SINGH AND ORS.
..Respondents
CORAM: HON'BLE MRS. JUSTICE SUDEEPTI SHARMA
Present: Mr. Digvijay, Advocate
for Mr. Vikram Singh, Advocate
for the appellant.
Ms. Tarranum Madan, Advocate
for respondent No.1.
Ms. Swatantar Kapoor, Advocate (through v.c.)
for respondent No.3-Insurance Company.
SUDEEPTI SHARMA, J.
1. The present appeal has been filed by the appellant-owner of the
offending vehicle against the award dated 18.10.2011 passed in a claim
petition filed under Section 166 of the Motor Vehicles Act, 1988 by the
Motor Accident Claims Tribunal, Palwal (for short, 'the Tribunal'), wherein
the appellant/driver of the offending vehicle was fastened with the liability to
pay the compensation of Rs.70,000/- to the claimant/respondent No.1 along
with interest @ 8% per annum from the date of filing of claim petition till
recovery.
BRIEF FACTS OF THE CASE
2. Brief facts of the case are that on 1.9.2008, at about 8.30 PM
Mahender Singh and Satbir Singh were going from Palwal to the village
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Misa on motorcycle No.HR 30-C 1275, Make Hero Honda. When they
reached Shani Dev Mandir, near village Sihaul-Kherla crossing, a
motorcycle No.HR 30-G-0148 (hereinafter referred to as offending vehicle)
being driven by respondent No.1 came from the side of village Chandhat at a
very high speed and struck against motorcycle HR 30C-1275. The petitioner
was a pillion rider on the said motorcycle. Due to the collision, occupants of
both the motorcycles fell down and received injuries. Satbir Singh who was
driving motorcycle No.HR 30C 1275 succumbed to his injuries and died at
the spot. The petitioner also received injuries in the accident and he was
admitted in Government hospital, Palwal where he was medically examined
by Dr. J.P Parshad. Thereafter, he remained admitted from 8.9.2008 to
17.9.2008 in B.K. Hospital, Faridabad. He has spent Rs.35000/- on his
treatment and he is still under treatment. He was running a Kiryana shop at
village Lohagarh and was earning Rs.10000/- per month, but due to the
injuries sustained in the accident he could not do his work for a long time
and suffered loss of income. The accident in question took place due to
negligence of respondent No.1 and case FIR No.214 dated 2.9.2008 under
section 279/337/427/304 IPC was registered against him regarding accident
in question.
3. Upon notice of the claim petition, respondents therein appeared
and contested the claim petition by filing separate written statement denying
the factum of accident/compensation.
4. From the pleadings of the parties, the Tribunal framed the
following issues:-
“i) Whether the accident has taken place on 1.9.2008 at
8.30 P.M at Shanidev Mandir, near Sihol Kherla Chowk,
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Tehsil & Distt Palwal on account of rash and negligent
driving of offending vehicle No.HR 30 G 0148 driven by
respondents No.1. If so, whether the petitioner sustained
injuries in this accident?OPP
ii) If first issue No.1 is proved, whether the petitioner is
entitled to claim compensation. If so, to what amount and
from whom?
iii) Whether the respondent No.1 was not holding any
valid and effective driving licence at the time of alleged
accident.
iv) Relief”
5. Thereafter, both the parties led their evidence in support of their
respective pleadings.
6. After taking into consideration the pleadings and the evidence
on record, the learned Tribunal awarded compensation to the claimant.
However, the respondent No.3-Insurance Company was held liable to pay
compensation at first instance and recov