IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN THURSDAY, THE 18TH NOVEMBER 2010 / 27TH KARTHIKA 1932 MACA.No. 1978 of 2010() ----------------------- OPMV.1665/2003 of MOTOR ACCIDENTS CLAIMS TRIBUNAL, THRISSUR .................... PETITIONER/APPELLANT: --------------------------------------- UNITED INDIA INSURANCE CO. LTD., DIVISIONAL OFFICE, ROUND NORTH, THRISSUR. BY ADV. SRI.P.V.JYOTHI PRASAD RESPONDENT(S): PETITIONER AND 1ST RESPONDENT: ----------------------------------------------------------------------------------- 1. NISHA PRABHAKARAN, W/O. PRABHAKARAN, MANGATT ILLATH, VALAPPIL HOUSE, P.O.ERAVU, THRISSUR DISTRICT. 2. PRABHAKARAN, S/O. CHANDRASEKHARAN NAIR, MANGATT ILLATH, VALAPPIL HOUSE, P.O.ERAVU, THRISSUR DISTRICT. R1 & R2 BY ADVS. SRI.G.SREEKUMAR (CHELUR), SRI.K.RAVI (PARIYARATH). THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 18/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss M.N. KRISHNAN, J. ........................................... M.A.C.A.NO.1978 OF 2010 ............................................. Dated this the 18th day of November, 2010. J U D G M E N T This is an appeal preferred against the award of the Claims Tribunal, Thrissur in OP(MV)No.1665/2003. Claimant is the wife of the first respondent in the claim petition, who sustained injuries in a road accident. The husband was driving his private car covered by an Act only policy along with the wife and the child, when unfortunately the accident took place resulting in injuries to them. 2. Now the question that arises for consideration is whether the insurance company can be saddled with the liability. By virtue of a clarificatory circular issued by the Insurance Regulatory and Development Authority dated 16.11.2009 the conditions of the policy had been analysed by the authority and it has been decided that in the case of a vehicle covered by package policy, the person travelling in a two wheeler and persons taken in a private vehicle are covered under the terms and conditions of the standard motor package policy. So until and unless it is a package or : 2 : M.A.C.A.NO.1978 OF 2010 comprehensive policy, by virtue of the terms and conditions of the policy, it will not cover the risk of the persons travelling in the car. The principle to be extended is the dictum laid down in United India Insurance Co. Ltd. v. Tilak Singh (2006 (2) KLT 884 (SC). In Tilak Singh's case when the vehicle was covered only by an act only policy it was contended that the person travelling as a pillion rider is a third party and therefore he is covered under the provisions of Section 147 of the Motor Vehicles Act. The Hon'ble Apex Court held that status of the person travelling as a pillion rider in an act only policy covered vehicle is only that of a gratuitous passenger not covered by the policy and therefore exonerated the insurance company from the liability. 3. It is the same principle that has to be extended to a private car which is covered only by an act only policy. Status of the passengers in such a car is that of a gratuitous passenger not covered under the statutory policy. Therefore those persons are not covered under the terms and conditions of the policy and therefore insurance company cannot be : 3 : M.A.C.A.NO.1978 OF 2010 saddled with the liability. The approach made by the Tribunal cannot be legally sustained and therefore I set aside the award of the Tribunal so far as it relates to creating liability on the insurance company and the insurance company is exonerated from the liability. But the claimant is at liberty to proceed against the owner cum driver of the car, if he chooses to do so. 4. In the result, the appeal is allowed. The insurance company is exonerated from the liability and it is made clear that the claimant is at liberty to proceed against the first respondent for realisation of the amount awarded by the Tribunal. Disposed of accordingly. M.N. KRISHNAN, JUDGE. cl : 4 : M.A.C.A.NO.1978 OF 2010 M.N. KRISHNAN, J. ........................................... A.S.NO.389 OF 2001 ............................................. 11th day of November, 2010. J U D G M E N T