Thresia vs United India Insurance Co. Ltd.

Thomas P. Joseph, J.—Respondents appear through counsel. The appeal arises from the award dated 31.07.2007 in O.P. (M.V.). No. 1277 of 2003 of the Motor Accident Claims Tribunal, Perumbavoor (for short, "the Tribunal"). The Tribunal assessed compensation payable to the appellant as Rs. 22,000/- with interest @7.5% per annum but, exonerated the respondent/insurer of the offending vehicle from liability for the reason that the appellant was riding on the pillion of the motor cycle. The appellant is aggrieved by the exoneration of the respondent and has preferred this appeal.

The learned counsel for the appellant contends that the policy produced by the respondent in the Tribunal is a motor B policy which covers liability of pillion riders. The learned counsel has placed reliance on the decision in New India Assurance Co. Ltd. Vs. Hydrose and Others, where the Division Bench has held that on a B policy, the insurer is liable with respect to a pillion rider of a motor cycle. The insurer has by contract agreed to indemnify the insured of the risk of gratuitous passenger in the motor cycle.

I have heard the learned counsel for the respondent. In the light of the decision of the Division Bench and since the policy issued is a motor B policy, it follows that the respondent is liable to indemnify the insured for the risk of the pillion rider. Hence the respondent is liable to pay compensation.

Resultantly the appeal is allowed as under:

(i) Finding of the M.A.C.T., Perumbavoor in O.P. (M.V.). No. 1277 of 2003 exonerating the respondent from liability is set aside.

(ii) The respondent is found liable to pay compensation awarded by the Tribunal.

(iii) The respondent is directed to deposit the amount in the Tribunal within two months from this day.

(iv) Parties are directed to suffer their costs in the appeal.