NEW INDIA ASSURANCE CO. LTD Vs. PARMANAND

JUDGEMENT

(1.) THIS appeal is filed by Insurance Company on the ground that Insurance Company is not liable to pay compensation, as vehicle was driven in violation of policy of the insurance. Respondent No. 1 has filed cross-objection.

(2.) FACTS of the case are as under:

(3.) IN the case of National Insurance Co. Ltd. v. Ajit Kumar and Ors. , the question of person travelling in a goods carriage has been considered. While considering the expression "goods vehicle" and its definition under Section 2(14) of the Motor Vehicles Act, 1988 it is held that "goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods. It is further held that the difference in the language of "goods vehicle" as appearing in the old Act and "goods carriage" in the new Act is of significance. A bare reading of the provisions makes it clear that the legislative intent was to prohibit goods vehicle from carrying any passenger. This is clear from the expression "in addition to passengers" as contained in the definition of "goods vehicle" in the old Act. The position becomes further clear because the expression used in "goods carriage" is "solely for the carriage of goods". Carrying of passengers in a goods carriage is not contemplated in the Act. There is no provision similar to Clause (ii) of the proviso appended to Section 95 of the old Act prescribing requirement of the insurance policy. Even Section 147 of the Act mandates compulsory coverage against death of or bodily injury to any passenger of "public service vehicle". The proviso makes it further clear that compulsory coverage in respect of drivers and conductors of public service vehicle and employees carried in goods vehicle would be limited to liability under the Workmen's Compensation Act, 1923. There is no reference to any passenger in "goods carriage", It is held that 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 travelling in a goods carriage and the insurer would have no liability therefor.