NEW INDIA ASSURANCE CO LTD Vs. RADHIKA

JUDGEMENT

(1.) APPEAL is filed by the insurance company against the award of M. A. C. T. directing the appellant to pay compensation for the death of son of the first respondent, the remaining respondents being siblings of the deceased. Claim Petition was filed by respondents under S. 163a of the M. V. Act and the M. A. C. T. granted compensation of Rs. 1,84,500/- and since the motorbike was covered by a comprehensive policy (B policy), the appellant was directed to deposit compensation. It is against this part of the award that the appellant has filed this appeal. We have heard standing counsel appearing for the appellant and counsel appearing for the respondents.

(2.) COUNSEL appearing for the appellant cited decision of the Supreme Court in New india Assurance Co. Ltd. v. Jaya (2002 (1) KLT 596 (SC)), and also Full Bench decision of this Court in Mathew Joseph v. Janaki (2007 (1) KLT 747 (F. B.)) and contended that insurance company has no liability to pay compensation for the death of rider of a motor-cycle though the policy is a comprehensive policy (B policy ). Counsel appearing for the respondents on the other hand referred to Division Bench decision of this Court in New India Assurance Co. Ltd. v. Hydrose, (2008 (3) KLT 778)and Oriental Insurance co. Ltd. v. Smt. Baby and Ors. (2009 (1) KLT SN 3 (C. No. 3) = (2008) 4 KHC 103 (D. B.)and contended that appellant is liable to pay compensation to the legal representatives of the victim under the Comprehensive Policy.

(3.) IN the decision of the Supreme Court cited by the appellant, all what is decided is that higher compensation over the limit can be claimed only on payment of additional premium. In the Full Bench decision cited by the appellant, this Court has in fact held that gratuitous passengers in transport vehicles including motorcycles, can have coverage only when a comprehensive policy or extended policy as might be possible to be issued has been availed by the owner of the vehicle. Since the appellant has contested the liability on the ground that it is not covered by conditions of policy, we have referred to the conditions of B policy issued to the registered owner of the vehicle in this case. Section II of the conditions of Policy providing for liability to third parties is as follows: section II- Liability to Third Parties.