^y HIGH COURT OF CHHATTISGARHAT BILASPUR Misc. Appeal (C) No. 1064_of2907 APPELLANTS Bindulal Kalar and others ^ RESPONDENTS Versus William another Dhritlahare and AWARD For consideration (2^ -10-201 1 Hon'ble Shri Justice Raieev Gupta ^ ^L^y^-^- Sd/- ChiefJustice Sd/- Judge l^ -10-2011 Post for pronouncement ofAward: 3 -10-2011 Sd/- N.K. Agrawal Judge 1. nwii :^^^ 'y '••A-''^"'-'' ^ ^ \J\^ ^' 'Y'i- - HIGH COURT OF CHHAmSGARH AT BILASPUR MISC. APPEAL {CfNo.1064 of 2007 APPELLANTS 1. Bindulal Kalar, aged 47 years, son oflate Shri Shivlal, 2. Smt. Usha Bai, aged 44 years, wife of Shri Bindulal 3. Mahesh Kumar, aged 12 years, son of Shri Bindulal minor through natural guardian, father Bindulal Kalar, All residents of EWS 35, Maharana Pratap Nagar, Korba, Tehsil and District Korba (C.G.) (daimants) Versus ^.' / RESPONDENTS 1. William Dhritlahare, aged 24 years, son of Shri Tirith Ram Dhritlahare, resident of MIG 2/88, Maharana Pratap Nagar, Korba, tehsil and district Korba (Driver-cum-Qwner) 2. The United India Insurance Company Ltd., through the Branch Manager, Branch Korba, tehsil and district Korba (C.G.) (insurer] APPEALJJNDER SECTION 173 OF THE MOTOR VEHICLES ACT Corain: Hon. Shri Rajeev Gupta, C.J. & Hon. Shri N.K. Agarwal, J PRESENT:- Shri Somnath Verma, counsel for the appellants. Shri Shreekumar Agrawal, Senior counsel with Shri Anand Gupta, counsel for respondent No.2. E3 ^^^- v.\^ L. AWARD (PassedonlS -10-2011) Per N.K. Aearwal, J. This is claimants' appeal seeking enhancement of compensation awarded by the Motor Accidents Claims Tribunal, Korba (for short 'the Tribunal') in claim case No. 37/2004 vide award dated 31=t July, 2007. 2. As against compensation of Rs.22,14,000/- claimed by the unfortunate parents and minor brother of the deceased - Deepaklal by filing claim application under Section 166 of the Motor Vehicles Act, 1988 for his death in the motor accident on 18.03.2004, the Tribunal has awarded a total sum of Rs.2,40,000/- along with interest @ 6% per annum from the date of application till its actual payment. 3. The Tribunal, on a close scrutiny of the evidence led, held: the accident had occurred due to rash and negligent driving of driver of Hero Honda Motorcycle bearing registration No.C.G.12-B/6995; deceased - Deepaklal sitting as pillion rider on the motor cycle; died on account of injuries sustained by him in the said accident; respondent No-2/United India Insurance Company Limited not liable for payment of compensation as the risk of deceased Deepaklal, sitting as pillion rider on the motorcycle, was not covered under the policy; assessed and awarded Rs.2,40,000/- as fc compensation for the death of Deeapaklal in the motor accident along with interest @ 6% per annum from the date of application tiU its actual payment, holding respondent No.l Uable for payment of compensation. 4. Shri Somnath Verma, leamed counsel appearing for the appellant would not dispute the amount of compensation awarded by the Tribunal but by drawing attention of this Court towards the policy of insurance, which is a package policy, he vehemently argued that the Tribunal has erred in exonerating respondent No.2/United India Insurance Company Limited from its liability to pay compensation. 5. On the other hand, Shri Shree Kumar Agrawal, learned Senior Counsel with Shri Anand Gupta, appearing for respondents No.2 supported the award and submitted: the Tribunal has rightly exonerated the insurance company from its UabiUty to pay compensation; the above finding does not call for any interference. 6. We have heard learned counsel for the parties and have perused the record of the Tribunal including the award impugned. 7. Indisputably, deceased - Deepaklal was sitting on the motor cycle as pillion rider; policy of insurance (Ex.D.l) is a package policy. -">, ^ 8. Circular dated 16th November, 2009 issued by the Insurance Regulatoiy and Developraent Authority reads as under:- "To CEOs of all General Insurance Corripanies Re: Liabilities of Insurance Companies in respect of occupant of a private Car and Pillion Rider in a Two-Wheeler under standard Motor Package Policy (also called Comprehensive Policy). Insurer's attention is drawn to wordings of Section (II) l(i) of Standard Motor Package Policy (also called Comprehensive Policy) for private Car and Two Wheelers under the (erstwhile) India Motor Tariff For convenience the relevant provisions are reproduced hereunder: "Section II-Liability to Third Parties 1. Subject to the limits of liability as laid down in the Schedule hereto the Company will indemnify the insured in fhe event of an accident caused by or arising out of fhe use of the insured vehicle against all sums which the insured shall become legally liable to pay in respect of- (i) death or bodily injury to any person including occupants carried in the vehicle (provided sueh occupants are not carried for hire or reward) but except so far as it is necessary to meet the requirements of Motor Vehicles Act, the-<'Company shall not be liable where such death or injury arises out of and in the course of employment of such person by the insured. . It is further brought to the attention of insurers that the above provisions are in Une with the following circulars earlier issued by °" ^ h.,,^^y vAV the Traffic Advisory Committee on the subject : (i) Circular M.V. No. 1 of 1978-dated 18th March 1978 (regarding occupants carried in Private Car) effective from 25th March 1977. (ii) MOT/GEN/10 dated 2nd June, 1986 (regarding Pillion Riders in a Two Wheeler) effective from. the date of the circular. The above circulars make it clear that the Insured's liability in respect of occupant (s) carried in a private Car and Pillion Rider carried on Two Wheeler is covered under the Standard Motor Package Policy. A copy of each of the above circulars is enclosed for ready reference. The authority vide circular No. 066/IRDA/F85U/Mar-08 dated March 26, 2008 issued under File 85 Use Guidelines has reiterated that pending further orders the insures shall not vary the coverage, terms and conditions wordings, warranties, clauses and endorseraents in respect of covers that were under fhe erstwhile tariffs. Further, the Authority, vide circular No. OlQ/IRDA/NL/F&U/Oct-OS dated November 6, 2008 has mandated that insurers are not permitted to abridge the scope of standards covers available under the erstwhile tariffs beyond the options permitted in the erstwhile tariffs. All General Insurers are advised to adhere to the aforementioned circulars and any non-compliance of the same would be viewed seriously by the Authority. This is issued with the approval of Competent Authority. Sd/- Executive Director" 9. The above circular makes it clear that insured's liability in respect of pillion rider, carried on two wheeler, is covered V-,'X'7 under the Standard Motor Package Policy. Therefore, in our considered opinion, the Tribunal went wrong in holding the insurance company not liable for payment of compensation for the deafh of Deepaklal i.e. pillion rider, carried on two wheeler in question. 10. por the foregoing, the appeal is allowed in part. The respondent No. 2/ United India Insurance Company Limited is also held responsible for payment of compensation to the claimants jointly and severally with respondent No.l. The award is modified to the above extent. Rest of the cotents of the award shall remain intact. 13?. The respondent No.2/United India Insurance Company Limited is granted three months time from today for depositing the amount of compensation before the concerned Tribunal. 12. No order as to costs. s;~ Chief'Jusi,. Sd/- N.K.Agarwal Judge