Occupants of a private vehicle insured under 'Act Only Policy' are not considered third parties, thus the insurer is not liable for their injuries.

Reserved on: 29/07/2024 Pronounced on: 08/08/2024

1.These appeals have been preferred by the Appellant- insurance company under section 173 of the Motor vehicle act, 1988 (hereinafter referred to as ‘the Act’), against the Judgment and award dated 02.03.2017 passed by MACT, Parbatsar, District Nagaur, whereby compensation has been awarded to the claimants and the appellant has been directed to pay the compensation at the first instance and thereafter to recover the same from the owner & driver of the vehicle. The instant appeal has been filed by the appellant seeking the relief that the Judgment and award dated 02.03.2017 be quashed and set aside qua the appellant.

2.Briefly stated, the facts of the case are that on 05.05.2011 the claimants – Girdhari, Dayal, Sunita, Rajbala and Surendra were traveling from Chitawa to Adaksar in a Jeep- RJ23 UA 0302 (hereinafter referred to as “the vehicle”). The Driver of the Jeep Jagdeesh Prasad was driving the said vehicle rashly, negligently and at high speed. As a result the vehicle turtled and Girdhari, Dayal, Sunita and Rajbala got grievously injured and Surendra died. Subsequently, separate claim petitions were filed before MACT, Parbatsar (hereinafter referred to as “the tribunal”) by the claimants which were tagged together as they related to the same accident. It was alleged by the claimants before the learned tribunal that the vehicle was insured with the Appellant herein and (4 of 12) therefore it is jointly and severally liable along with owner and driver of the vehicle to pay the compensation to the claimants.

3.It was contended by the appellant herein before the learned tribunal that the said vehicle was insured under ‘Act only policy’(Policy No. 2319200008570100002), according to which the insurance company has no liability towards the occupants of the said vehicle. And also no premium was charged by the insurance company to cover the risk of the occupants. Further the appellant herein alleged before the learned tribunal that the driver of the vehicle was not carrying any valid and effective driving license at the time of the accident. Hence, on these grounds the appellant herein pleaded before the learned tribunal that it had no liability to pay the compensation to claimants.

4.On the basis of the pleadings of the parties, the learned tribunal framed total 5 issues, which are being re-produced as under:-

1. vk;k fnukad 05-05-2011 dks okgu la[;k vkj-ts-23 ;w-,- 0302 dks mlds pkyd foi{kh la[;k&1 txnh’k izlkn ds }kjk rstxfr ,oa vlko/kkuh ls pykdj nq?kZVuk dkfjr dh] ftlds dkj.k fxj/kkjhyky] n;ky] lqfurk o jktckyk ds pksVsa vkbZ ,oa lqjsUnz mQZ lksuw dh e`R;q dkfjr gqbZ\

2. vk;k foi{kh la[;k&01 okgu pkyd] foi[kh la[;k&2 okgu Lokeh ds fu;kstu esa dk;Z dj jgk Fkk vkSj blh fu;kstu dky esa ;g nq?kZVuk dkfjr gqbZ\

3. vk;k foi{khx.k dh vksj ls izLrqr izkjafHkd vkifRr;ksa ,oa fo’ks”k fooj.k esa vafdr rF;ksa dk D;k izHkko gS\

4. vk;k izkFkhZx.k foi{khx.k ls 31]65]000@&] 48]67]000@&]

9]35]000@&] 9]65]000@& ,oa 40]62]000@& :i;s izfrdj ds :i esa izkIr djus ds vf/kdkjh gS vkSj ;fn gS rks fdl&fdl foi{kh ls vkSj fdruh&fdruh jkf’k\

5. vuqrks”k\”

5.In respect of these issues the claimants examined five witnesses (all the five claimants) and total 151 annexures were exhibited. And the Appellant herein examined NAD-1- Nitin Kumar (5 of 12) who deposed before the learned tribunal that at the time of the accident the vehicle was insured with the appellant-insurance company as a private car against liability only policy, under which no premium was taken for the occupants of the vehicle. He further deposed before the learned tribunal that the occupants were traveling unauthorizedly in the vehicle.

6.The learned Tribunal after hearing the parties and considering the evidence produced by the parties vide its Judgment and award dated 02.03.2017 (hereinafter referred to as ‘impugned judgment’) held the driver and owner of the vehicle liable and directed the appellant herein to pay the compensation amount and