High Court Kerala High Court

The New India Assurance Company … vs V.G.Baby on 21 August, 2008

Kerala High Court
The New India Assurance Company … vs V.G.Baby on 21 August, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

MACA.No. 1781 of 2007()


1. THE NEW INDIA ASSURANCE COMPANY LTD.,
                      ...  Petitioner

                        Vs



1. V.G.BABY, S/O. GEORGE,
                       ...       Respondent

2. SEBASTIAN, S/O. VARGHESE,

3. INDIRA, AGED ABOUT 39 YEARS,

4. ASWATHY, AGED ABOUT 14 YEARS,

5. NANDAKUMAR, S/O. K.PURUSHOTHAMAN,

                For Petitioner  :SRI.P.R.RAMACHANDRA MENON

                For Respondent  :SRI.P.SANTHOSH  (PODUVAL)

The Hon'ble MR. Justice M.N.KRISHNAN

 Dated :21/08/2008

 O R D E R
                     M.N. KRISHNAN, J.
              = = = = = = = = = = = = = =
           M.A.C.A. NOs. 1781 & 2252 OF 2007
            = = = = = = = = = = = = = = =
        Dated this the 21st day of August, 2008.

                      J U D G M E N T

These appeals are preferred against the award of the

Motor Accidents Claims Tribunal, Thrissur in O.P.(MV)

Nos.3200/01 and 3204/01. Both the claimants were

travelling in a goods auto rickshaw and they sustained

injuries in a road accident. The insurance company

contended that it was only an Act only policy and it did not

cover passengers carried in goods vehicle. The Tribunal on a

consideration of the materials awarded compensation in both

the cases and directed the insurance company, namely, the

3rd respondent therein to pay the amount. It is against that

decision, the insurance company has come up in appeal

challenging the finding of the Tribunal regarding its liability.

2. The question argued before this Court is that the

petitioners were carried as passengers in a goods vehicle and

are not covered by the policy issued by 3rd respondent.

Whereas it is stated by the claimants that the petitioners

M.A.C.A.s. 1781 &
2252 OF 2007 OF 2007
-:2:-

were carrying own tapioca in the goods carriage and so they

were the owner of the goods accompanying the goods and

therefore entitled to have statutory coverage. The carriage

of passengers in a goods auto rickshaw which has only a seat

of a driver has been considered by the Apex Court in the

recent decision reported in 2008 AIR SCW 4739, i.e.

United India Insurance Co. Ltd. v. Suresh. In

paragraph 13 the Apex Court held,

“If the claimant had not been

travelling in the vehicle as owner of the

goods, he shall not be covered by the policy

of insurance. In any view of the matter in a

three wheeler goods carriage, the driver

could not have allowed anybody else to

share his seat. No other person whether as

a passenger or as a owner of the vehicle is

supposed to share the seat of the driver.

Violation of the condition of the contract of

insurance, therefore, is approved.”

But in that case invoking the powers of the Apex Court it

directed the insurance company to pay the amount. But

M.A.C.A.s. 1781 &
2252 OF 2007 OF 2007
-:3:-

such a power cannot be exercised by this Court and status of

the passengers in a goods vehicle amounts to that of a

gratuitous passenger and as they are not third parties they

are not bound to be indemnified by the insurance company

for the reason that it is out of the insurance contract

between the owner and the insurer. Therefore the finding of

the Tribunal that the insurance company is bound to pay the

amount is set aside and the award is modified and the

insurance company is exonerated from the liability and

respondents 1 and 2 in the claim petition are directed to pay

the amount to the claimant jointly and severally. The

amount deposited by the insurance company, if not already

disbursed, should be given back to the insurance company.

The MACAs. are disposed of accordingly.

M.N. KRISHNAN, JUDGE.

ul/-