IN THE HIGH COURT OF KERALA AT ERNAKULAM
MACA.No. 3 of 2008()
1. THE ORIENTAL INSURANCE CO. LTD.,
... Petitioner
Vs
1. GIGI VARGHESE, S/O.VARGHESE,
... Respondent
2. BIJU GEORGE, S/O.GEORGE,
3. GEORGE XAVIER, S/O.XAVIER,
For Petitioner :SRI.GEORGE CHERIAN (THIRUVALLA)
For Respondent :SRI.K.JAJU BABU
The Hon'ble MR. Justice M.N.KRISHNAN
Dated :03/11/2008
O R D E R
M.N.KRISHNAN, J.
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M.A.C.A No. 3 OF 2008
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Dated this the 3rd day of November, 2008
JUDGMENT
This appeal is preferred against the award passed by the
Motor Accident Claims Tribunal, Muvattupuzha, in OP(MV) 1205/03. The
claimant, pillion rider in a motor bike, sustained injuries in a road accident
and the Tribunal awarded him a compensation of Rs.22,500/- and directed
the Insurance Company to pay the amount. It is against that decision, the
Insurance Company has come up in appeal.
2. Learned counsel for the Insurance Company contends that the
policy issued is only an Act only policy which does not cover the risk of a
pillion rider. It is submitted that in the case on hand, additional coverage
for personal accident is taken for the rider as well as the pillion rider and
entitlement to compensation on the basis of that premium will arise only if
there is a death or permanent disablement as contemplated under law. So
far as this case is concerned, there is no death or permanent disablement
and therefore the extended premium will not cover the risk of a pillion rider.
An amount of Rs.50/- is paid for covering the wider coverage of third party
damage. Lastly we find there is an amount of Rs.163.20 is charged as an
extra loading. Learned counsel for the Insurance Company explained it to
me stating that when premium is renewed, the ratio goes up. There is a
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practice under the insurance condition to charge extra and that is called
extra loading and it is only with respect to the higher percentage for
issuance of the policy. It does not relate to any additional coverage or any
personal coverage. So that amount of extra loading will not cover a pillion
rider. Being an Act only policy and as no additional premium is collected to
cover the case of a pillion rider, applying the dictum in United India
Insurance Co. Ltd. v. Tilak Singh [2006 (4) SCC 404] the Insurance
Company is not bound to indemnify the owner. It has to be totally
exonerated from the liability.
Therefore, the appeal is allowed. The award passed by the Tribunal
directing the Insurance Company to pay the amount is set aside and the
claimant is given liberty to realise the said amount from respondents 1 and
2 in the claim petition jointly and severally.
M.N.KRISHNAN, JUDGE
vps
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