IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN WEDNESDAY, THE 22ND OCTOBER 2008 / 30TH ASWINA 1930 MACA.No. 457 of 2008() --------------------------------- OPMV.35/2003 of MOTOR ACCIDENT CLAIMS TRIBUNAL, MUVATTUPUZHA .................... APPELLANT(S): PETITIONER IN O.P. (MV) 35/03 ----------------------- LISHA, W/O.JAIMON, MANAVALAN HOUSE, ALANGAD, PARAVUR. BY ADV. SRI.V.K.GOPALAKRISHNA PILLAI SRI.GOPAKUMAR.G. SMT.ANUPAMA JOHNY RESPONDENT(S): RESPONDENTS IN OP(MV) 35/03 ---------------------------- UNITED INDIA INSURANCE CO.LTD., BRANCH OFFICE, K.A.P. COMMERCIAL CENTRE, R.S.ROAD, ALUVA-683 101. ADV. SRI.RAJESH THOMAS FOR R1 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 22/10/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: M.N.KRISHNAN, J ===================== MACA No.457 OF 2008 ===================== Dated this the 22nd day of October 2008 JUDGMENT This appeal is preferred against the award of the Motor Accidents Claims Tribunal, Perumbavoor in O.P.(MV)No.35 of 2003. The claimant, a pillion rider sustained injuries in a road accident and he has been awarded a compensation of Rs.20,280/- with 7% interest. The Tribunal exonerated the insurance company from the liability in the light of the decision of the Apex Court in United India Insurance Co.Ltd. v. Tilak Singh(2006(2) KLT 884(SC). It is against that decision the claimant has come up in appeal. The claimant has produced a certified copy of the policy and conditions of policy for perusal. It is a package policy. Section II of the conditions of policy reads as follows: “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 the event of an accident caused by or arising out of the use of the insured vehicle against all sums which the insured shall become legally liable to pay in respect of (i) death of or bodily injury to any person including occupants carried in the insured vehicle (provided such 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 MACA 457/2008 -:2:- be liable where such death or injury arises out of and in the course of the employment of such person by the insured”. The very same clause came up for consideration before a Division Bench of this Court in New India Assurance Co.Ltd. v. Hydrose and others(2008(3) KHC 522). After extracting the clause the Division Bench held that “the above clearly states that the insurer has undertaken liability in respect of death or bodily injuries to any person including a person conveyed in or on the motor cycle provided such person is not carried for hire or reward. Here no limitation of liability is mentioned in the Schedule”. The Division Bench held that in such cases the insurance company is bound to indemnify the owner in the light of the conditions of the contract. Therefore the finding of the Tribunal is incorrect. In Tilak Singh's case supra the Apex Court was only considering the question of an Act only policy with no such condition and in that context it was held that unless a wider premium is paid it will not cover the case of a pillion rider. In the light of the above decision, the contention of the insurance company that it is not liable to pay the amount to the pillion rider cannot be sustained. The award under challenge is modified and the insurance company is directed to pay the amount ordered MACA 457/2008 -:3:- in favour of the claimant. It shall deposit the said amount within 60 days from the date of receipt of a copy of this judgment. MACA is disposed of as above. M.N.KRISHNAN, JUDGE Cdp/-