IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN THURSDAY, THE 28TH JANUARY 2010 / 8TH MAGHA 1931 MACA.No. 1303 of 2009() --------------------------- OPMV.525/2002 of MOTOR ACCIDENT CLAIMS TRIBUNAL, THRISSUR .................... APPELLANT(S): 3RD RESPONDENT ------------------------------------ THE NATIONAL INSURANCE CO. LTD., REP. BY ITS MANAGER, REGIONAL OFFICE, OMANA BUILDING, PADMA JUNCTION, KOCHI-35. BY ADV. SMT.RAJI T.BHASKAR RESPONDENT(S): PETITIONER & RESPONDENTS 1 & 2 RESPET. ----------------------------------------------------------------------- 1. PRESSY, AGED 27 YEARS, S/O.SUSEELAN, CHENNANKULAM HOUSE, PARAKKAD VILLAGE, KUNNATHANGADI DESOM, THRISSUR DISTRICT. 2. SANTHOSH, AGED 28 YEARS, S/O.VENUGOPALAN, KAVINOOR HOUSE, OLLUR VILLAGE, ANCHERY, THRISSUR DISTRICT. 3. K.N.JAYAKUMAR, S/O.NATARAJ, MISIRYA, QUARTERS, MANIKOTH P.O., 316/IX, KANHANGAD, KASARAGOD. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 28/01/2010, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: M.N. KRISHNAN, J. = = = = = = = = = = = = = = M.A.C.A. NO. 1303 OF 2009 = = = = = = = = = = = = = = = Dated this the 28th day of January, 2010. J U D G M E N T This appeal is preferred against the award of the Motor Accidents Claims Tribunal, Thrissur in O.P.(MV)525/02. The Tribunal has awarded a compensation of Rs.30,500/- and directed the insurance company to pay the amount. It is against that decision the insurance company has come up in appeal challenging the liability. 2. Though respondents are served they have not entered appearance. Heard the learned counsel for the appellant. The short point that arises for determination in the appeal is whether in an Act only policy the insurance company can be directed to pay the amount. Strangely I find that the Claims Tribunal has taken a stand that since additional premium is paid for coverage of unlimited property damages to third parties it will take in the pillion rider as well and so the insurance company is liable. It has to be stated M.A.C.A. 1303 OF 2009 -:2:- that the said approach is totally incorrect and cannot stand the scrutiny of law. By virtue of the Circular dated 16.11.2009 of the Insurance Regulatory and Development Authority, it has clarified that risk of persons travelling in a private vehicle or pillion riders travelling in a two wheeler are only covered by the terms and conditions issued by a Standard Motor Package Policy. So it is only the package policy which contains the clause. So far as an Act only policy policy is concerned the very specific condition that the words 'any person carried in a vehicle other than for hire or reward' will be significantly absent. Therefore an Act only policy cannot cover the risk of such persons. That is what has been precisely considered and decided by the Apex Court in Tilak Singh's case [United India Insurance Co. Ltd. v. Tilak Singh)2006 (2) KLT 884(SC) and the status of any person referred to in the policy cannot be extended to a pillion rider or a passenger travelling in a private vehicle and therefore the status is only that of a gratuitous passenger. Therefore the award passed by the Tribunal fixing the liability on the insurance company is incorrect and therefore it is set aside. M.A.C.A. 1303 OF 2009 -:3:- Therefore the MACA is allowed and the finding of the Tribunal making the insurance company liable is set aside. It is exonerated from the liability and it is made clear that the claimant can proceed against the other respondents 1 and 2 in the claim petition jointly and severally for the realisation of the amount awarded by the Tribunal. M.N. KRISHNAN, JUDGE. ul/-