Chhattisgarh High Court upholds tribunal's verdict on insurance claim

RAIPUR: The Chhattisgarh High Court has held that insurance company would not be liable to pay compensation under the 'Act Only Policy' in the event of accidental death of a pillion rider of a vehicle, being a gratuitous passenger.
Shubham Kumar, along with five family members, moved the high court challenging award passed by the first Additional Motor Accident Claims Tribunal, Janjgir of Janjgir-Champa district in August this year.
In the said award, the Tribunal has exonerated the insurance company and fastened the liability upon the father of the appellants Munnalal Suryavanshi and awarded an amount of Rs 7.20 lakh as compensation on account of the death of mother of the appellants and wife of Munnalal, Meena Bai Suryavanshi. The bench of Justice Deepak Kumar Tiwari noted in his order that on January 27, 2020, the deceased Meena Bai, along with her husband, was returning from Champa to village Sothi on a motorcycle, which was being driven by her husband in a rash and negligent manner, due to which, Meena Bai had fallen down and died on the spot. The insurance company has specifically submitted in a written statement that the policy did not cover the pillion rider. Hence, there is no liability against the insurance company.
Petitioner's counsel HP Agrawal argued that the Tribunal has wrongly exonerated the insurance company from liability.
Referring to the judgments of the Supreme Court, the high court, in its order, said "an occupant/inmate/passenger in a private vehicle is not a third party. The finding recorded by the Tribunal that the insurance policy issued does not cover the risk of death of the deceased and, therefore, the insurance company is not liable to pay compensation is just and proper."