IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.664 of 2005 Date of decision:09.08.2010 United India Insurance Company Limited ...Appellant Versus Smt. Nirmala and others ....Respondents Present: Mr. Sanjiv Pabbi, Advocate, for the appellant. None for the respondents. ----- CORAM: HON'BLE MR. JUSTICE K. KANNAN ----- 1. Whether reporters of local papers may be allowed to see the judgment ? 2. To be referred to the reporters or not ? 3. Whether the judgment should be reported in the digest ? ---- K.Kannan, J. (Oral) 1. The Insurance Company is in appeal challenges the award on the ground that the vehicle which had been insured as a private vehicle was used without the permit as a commercial vehicle. The passengers in the vehicle, who died in the accident, had admittedly paid hire charges when he was travelling along with others as a marriage party. The Insurance Company took a specific defence that there had been a violation of terms of the policy by the use of vehicle as being used without a permit for user as a commercial vehicle. It was also elicited in the cross-examination of PW-1, the claimant, that the vehicle was being used for hire. I have seen also the terms of the policy which showed that FAO No.664 of 2005 - 2 - it was insured only as a private service and non-transport vehicle and that the policy cover for use other than the hire or reward. It is an Act policy and a passenger using the vehicle for hire, does not obtain any insurance cover enforceable against the insurer. The Insurance Company is, under the circumstances, not liable to satisfy the claim. The award is set aside and the appeal is allowed. 2. However, if during the pendency of the appeal, any amount has been recovered from the insurer by the claimant, the insurer shall not seek for refund from the claimant but still proceed against the owner only. For any portion of the award that has not been so far recovered, the claimant would have a right of recovery only against the owner and not against the insurer. (K.KANNAN) JUDGE 09.08.2010 sanjeev