UNITED INDIA INSURANCE CO LTD Vs. ABDUL HAMID

JUDGEMENT

(1.) THE aforesaid two appeals are being disposed of by a common judgment since both these appeals arise out of the same award passed by learned Motor Accidents Claims Tribunal, Bilaspur, in M.A.C. Case No. 110 of 2001; decided on 1.6.2004, whereby the compensation of Rs. 70,000 along with interest at the rate of 9 per cent per annum has been awarded in favour of the claimant Abdul Hamid and the insurance company has been held liable to pay the compensation.

(2.) MR. Harish Bahl, learned counsel for the appellant, submits that the learned Tribunal has erred in fastening the liability upon the insurance company in view of the fact that the deceased was a gratuitous passenger in the vehicle in question.

(3.) IN National INsurance Co. Ltd. v. Baljit Kaur, 2004 ACJ 428 (SC), the Apex Court considered the impact of the amendment to the Motor Vehicles Act made in 1994. The Supreme Court held that after the amendment of 1994, the insurance company was bound to cover liability in respect of owner of the goods or his authorised representative travelling in the goods vehicle. However, it further held that no passenger can be carried in a goods vehicle and the insurance company was not liable to pay compensation with respect to passengers especially gratuitous passengers. The Apex Court held thus: