Case: Oriental Insurance Company Ltd Vs. Devireddy Konda Reddy

Certain persons were traveling in goods vehicles which were subject matter of insurance with the appellant-Oriental Insurance Company Limited thereinafter referred to as the Insurer)The vehicles met with accidents resulting in death of several persons who were either unauthorised or gratuitous passengers in the said vehicles. Their legal representations lodged claims under Motor Vehicles Act, 1988. Thereinafter referred to as the Act). Though the accidents took place on different dates, the Motor Accident Claims Tribunal. Anantapur, (hereinafter referred to as the Tribunal) took up the cases together as according to it the points of dispute were identical. It held that the deceased persons accompanied the goods which were transported by the goods carriages in question. Accordingly, it held that the insurer was liable to indemnify award passed. In appeals filed by the insurer, learned Single Judge concurred with view of the Tribunal relying on Satpal Singhs case (supra). As noted above, the Division Bench dismissed the appeals against learned Single Judges judgments. The said common judgment as noted above is under challenge in these appeals

Court's reasoning:
10. The inevitable conclusion, therefore, is that provisions of the Act do not enjoin any statutory liability on the owner of a vehicle to get his vehicle insured for any passenger traveling in a goods carriage and the insurer would have no liability therefor11. Our view gets support from a recent decision of a three-judge Bench of this Court in New India Assurance Company Limited vs. Asha Rani and others (2002 (8) Supreme 594) in which it has been held that Satpal Singhs case (supra) was not correctly decided. That being the position the Tribunal and the High Court were not justified in holding that the insurer had the liability to satisfy the award