Insurance Company Not Liable To Pay Compensation For Death Of Gratuitous Passengers Travelling In Goods Vehicle: Gauhati High Court Reiterates

The Gauhati High Court recently reiterated that Insurance Company cannot be held liable to pay compensation for the death of gratuitous passengers travelling in goods vehicle.

While allowing the appeal filed by the insurance company, the single judge bench of Justice Parthiv Jyoti Saikia held:

“The Insurance Company is not liable to pay compensation to the claimant. The claimant is at liberty to recover the compensation granted in their favour by the Tribunal from the owner of the vehicle.”

The facts of the case reveal that on November 20, 2005 the deceased was travelling in a pick-up truck which met with an accident and he sustained injuries. The deceased succumbed to his injuries on January 14, 2006.

The Motor Accident Claims Tribunal vide judgement dated July 16, 2013 held that the deceased was a gratuitous passenger and the concerned insurance policy did not cover such passenger.

However, the Tribunal directed the insurance company to pay the compensation to the legal heirs of the deceased with liberty to recover the same from the owner of the vehicle.

The insurance company filed an appeal under Section 173 of the Motor Vehicles Act, 1988 against the impugned judgment of the Tribunal.

S. Dutta, Senior Advocate appearing for the appellant-insurance company argued that impugned judgement should be modified to the extent that the direction given by the Tribunal to go for pay recovery of the compensation should be set aside.

The court relied upon the judgement in National Insurance Co. Ltd. v. Bommithi Subbhayamma (2005) 12 SCC 243 in which the Supreme Court has laid down that the Insurance Company is not liable for payment of any compensation for death of a gratuitous passenger travelling in a goods vehicle.

The court thus held that the Tribunal committed error by directing the Insurance Company to pay the compensation and to go for recovery of the same from the owner of the vehicle.

Accordingly, the court allowed the appeal and set aside the impugned judgement of the Tribunal.

Case Title: New India Assurance Co. Ltd. v. Marami Das & 3 Ors.

Citation: 2023 LiveLaw (Gau) 42

Coram: Justice Parthiv Jyoti Saikia

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