Chhattisgarh High Court uphold Tribunal’s verdict on insurance claim

Chhattisgarh high court Insurance

Swarna Shukla-

Published On: October 31, 2021 at 18:17 IST

The Chhattisgarh High Court held that the insurance company would not be liable to pay compensation under the ‘Act only policy’ in the case of accidental death of a pillion rider of a vehicle.

Shubham Kumar moved to the High Court to challenge the award passed by the first Additional Motor Accident Claims Tribunal in August 2021.

In the award, the Tribunal exonerated the insurance company and fastened the liability on the father of the Appellants, Munnalal Suryavanshi, and awarded an amount of Rs. 7.20 Lakh in compensation.

The Bench of Justice Deepak Kumar Tiwari noted that on January 27, 2020, the deceased Meena Bai, along with her husband, was heading back home to village Sothi on a motorcycle. It was driven by her husband negligently and rashly, due to which Meena Bai had an accident and died on the spot.

The insurance company specifically submitted in a written statement that the policy didn’t cover the pillion rider. Therefore, there will be no liability for the insurance company.

Petitioner’s Counsel HP Agrawal argued that the Tribunal wrongly exonerated the Insurance company from liability.

The High Court referred to a Supreme Court Judgement and stated, “An occupant/inmate/passenger in a private vehicle is not the third party. The finding recorded by the Tribunal that the insurance policy issued does not cover the risk of death of the deceased and, therefore, the insurance company is not liable to pay compensation is just and proper.”

Also Read: Madras HC highlights need of empathy towards injured victims of motor accidents

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