ORIENTAL INSURANCE CO. LTD Vs. SHASHI BALA JAIN

JUDGEMENT

(1.) HEARD Sri K.S. Amist, learned counsel for the appellant and Sri Siddharth, learned counsel appearing on behalf of respondent Nos. 1 to 4. Despite the notice being sent to respondent No. 5, the owner of the vehicle, which was involved in the accident, by the registered post no one has put in appearance.

(2.) BY means of the present appeal, the appellant is challenging the order of the Tribunal dated 27.3.1991 by which the Tribunal has awarded a sum of Rs. 2,34,000 towards compensation.

(3.) LEARNED counsel for the appellant submitted that the deceased was travelling as a gratuitous passenger and, therefore, there was breach of policy and as such the insurance company is not liable to pay the compensation and the owner of the vehicle is liable to pay the compensation. Section 147 of the Motor Vehicles Act, 1988 (hereinafter referred to as the "Act") provides the requirements of policies and limits of liability. He submitted that under this section the insurance company was liable to pay against any liability which may be incurred in respect of the death of, or bodily injury to any person, or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place. It does not include the gratuitous passenger or owner of the goods. The owner of the goods has been added in Section 147(1)(b)(i) by Act No. 54 of 1994 w.e.f. 14.11.1994 with prospective effect and, therefore, the insurance company is not liable in case of death of owner of the goods.