Vehicle Having Comprehensive Insurance Policy Also Covers Risk Of Pillion Rider Of Third-Party Vehicle: Tripura High Court

Recently, the Tripura High Court held that a pillion rider of a third-party vehicle would be entitled to receive compensation from the insurance company of offending vehicle if it has a 'comprehensive insurance cover'.

The Court held that if an accident of a pillion rider of another vehicle occurs due to the fault of the insured vehicle, then the insurance company would be liable to pay compensation to the pillion rider, and not the owner of the insured vehicle.

The bench comprising Justice Biswajit Palit observed that if the insured vehicle owner owns a 'comprehensive vehicle policy' that covers a third party at risk, then the insurance company cannot shy away from the liability to make good the loss that occurred to the third party (including pillion rider) due to the fault of the insured.

Drawing reference from the Supreme Court's Judgment of National Insurance Company Limited vs. Balakrishnan and Anr. reported as (2013) 1 SCC 731, the High Court noted that once the policy purchased by the vehicle owner is a comprehensive package policy then the Insurance Company would be liable to make payment of compensation to the pillion driver of the third-party vehicle.

The observation of the Apex Court in Balakrishnan and anr case came to decide upon the liability of the insurance company to cover the risk of the occupants of the third-party car. The Court held that since the insured car had a 'comprehensive policy cover' and not the 'Act policy', therefore the occupants of the third-party car would be entitled to receive compensation from the insurance company in the event of damage caused to the occupants due to the fault of the insured vehicle.

In the present case, since it was not determined by the Motor Accident Tribunal (MAC) whether the insured vehicle had a comprehensive policy cover or not, therefore the High Court directed the MAC to determine the said position and pass the judgment afresh within three months.

Case Title: Sri Dipaul Debbarma Versus Sri Rajendra Debbarma & Ors., MAC App. No.41 of 2023

Citation: 2014 LiveLaw (Trip) 9

Click here to read/download the Judgment