NATIONAL INSURANCE COMPANY LIMITED Vs. KHAJANI

JUDGEMENT

(1.) THE point urged in appeals by the insurer in FAO Nos. 928 to 931 of 1997 is that even as per the contentions raised in the claim petitions, 3 deceased and one injured person were all passengers in a goods vehicle when the accident took place on 26.07.1995. The contention raised was that the persons were all gratuitous passengers and there is no policy coverage to the risk to such passengers in the truck. Section 147 of the Motor Vehicles Act requires a compulsory insurance cover only to owners of goods travelling along with the goods or the driver or conductor or loadman who are required to be covered for the risk under the Workmen's Compensation Act. There is no compulsion for coverage for any other class of persons. The policy of insurance cannot therefore extend to the benefit of the claimants or the owner to make the insurer liable for the compensation. The law on this has been firmly set forth in New India Assurance Company Limited Versus Asha Rani - : (2003) 2 SCC 223. The liability cast on the insurer is against the law laid down in the above decision. The liability shall be only on the owner and driver. The award passed against the insurer is set aside and the right of enforcement of the award is available for the claimants against the owner and driver.

(2.) THE appeals in FAO Nos. 928 to 931 of 1997 at the instance of the Insurance Company are allowed but reserving to the claimants the above benefit. If during the pendency of the appeals, any portion of the award has been recovered from the insurer, the insurer will press for recoveries against the owner and driver only in the interest of justice and not against the claimants. For any unrecovered portion of the award, the claimants will have a right of recourse not against the insurer but against the owner and driver.

(3.) IN FAO No. 1339 of 1997, the deceased was an agriculturist, aged 28 years. The possession of his lands was not disclosed and I would take him to be an agricultural labourer. The claimants were widow and 2 children. I will reassess the compensation and tabulate the various heads of claims as under: -