By: Priyanka Agarwal
Gauhati High Court reiterated that Insurance Company shall not be liable to pay compensation for death of gratuitous passengers travelling in goods vehicles.
Table of contents
- Background
- Submission by parties
- Order/Judgement of the Court
Background
A Single Judge Bench presided by Justice Parthiv Jyoti Saikia, was hearing an appeal filed under Section 173 of the Motor Vehicles Act, 1988 against an order of the Motor Accident Claims Tribunal in Case No.341/2006. The deceased was travelling in a pick up truck when the vehicle met with an accident wherein he suffered injuries and died.
The Tribunal although made an observation that the deceased was a gratuitous passenger and concerned insurance policy does not cover such a passenger, however, it still passed an order to pay compensation by the Insurance Company to the deceased. It also clarified that the compensation amount can further be recovered by the Insurance Company from the owner of the vehicle.
Submission by the parties
Counsel of the appellant, Mr. S. Dutta relied on the decision of the Supreme Court in the case of National Insurance Co. Ltd. v. Bommithi Subbhayamma, (2005 SC), in which it was held that the Insurance Company is not liable to pay compensation for death of a gratuitous passenger travelling in a goods vehicle. He also submitted that in the same case it was clarified by the Apex Court that the claimant respondent can recover the compensation amount directly from the owner of the vehicle.
Hence, in the present case the appellant pleaded to modify the impugned order of the Tribunal and its direction of payment of compensation by the Insurance Company to be set aside.
Counsel for the respondent , Mrs. C. Das resisted the same.
Order of the Court
The Court observed that the Tribunal made an error while making a direction to pay compensation by the Insurance Company. The Court relied on National Insurance Co. Ltd. v. Bommithi Subbhayamma (Supra) in which it was laid down that for death of gratuitous passengers travelling in goods vehicles, Insurance Company is not liable to pay for compensation.
Hence, the Court allowed the appeal and held that Insurance Company is not liable to pay compensation, thus modifying the order passed by the Tribunal. However, the Court clarified that the claimant can recover compensation amount, as directed by the Tribunal, from the owner of the vehicle.
Case Title: New Insurance Co. Ltd. v. Marami Das and Ors. (Live Law 2024 Gauhati High Court)
