Karnataka High Court
The National Insurance Co Ltd vs Pattabhi Ramaiah on 29 July, 2008
Equivalent citations: AIR 2009 (NOC) 294 (KAR.) = 2008 (6) AIR KAR R 419, 2008 (6) AIR KANT HCR 419, 2009 A I H C 435, (2009) 1 KCCR 165, (2009) 3 ACJ 1587
Author: Anand Byrareddy
Bench: Anand Byrareddy
"-173(1) é>fAth"e..éM3tor Vehicles Act agaifist the Judgemsni and
-sVIva'i2:d«.j2"7.{}3.2i}()6 passed in MVC-Nw.3};'2005 on {he iiic
nf ~.t¥ze' ~Il"'«~._Ac§£iiti»z:r:3aI Civil Judge (Senior Divisien), CJM,
,_.raie u£'5%;_p.a from the dais ufpt:liti{_>n iii} its rcaaiis-mun.
% i, §&I;'1'w "ms:
VV The Natiunai Insurance
AND:
1 . Fallabhi Ramaiasih, 46 years
She} Janaid Ramaiah
Resident :33'
Uppanayakanahalli
Tanigcre Pusl
Chazmagiri Taluk 1
Dezvanagtzrc Bisificl
2. Srinivasa, Majqr V
S/0 Nageshwarfiae _ _.
Rssidttntu_{Ka:§§1iLu'a»1V 1
Camp, '
Dava1__uf1_g&;'e "'-- ~ i{}::SP()Nl)ii'.N'i'S
{Sh1"i. Mahasi} I231' Respondent Nu. i (5
Shri. A. I-ianylmanfihagapa,'A4iivo.::a£c for Resgzondent N02)
» K! ._:r$senInar
'This 3'vEViV:;i.:¢.*1'I.?F?'.F5i»3us First Agxptsai is mad under Sccliun
AdVdi'ti'unaA§ 7&gf(§TE.(T:r Accidents Ciaims Tri§fi)tmal, Davanagcrc,
awardinga ceémpensation of Rs. l,82,750!- with interest at the
MFA Nu. 692i;"20i}6
Company Limited
By iis Manager
' A I3avan.f1ge:c¢_
A
" R;-,gist'i'atic3n No.
- K3;-17-3-9323
Divisionai Gffice
Davanagere
The D1-sputy Manager
Natienal Insurance
Company I,,i:"r.:ilcd
Regienal Gffice
Shubharam Cnmpkzx
2nd Floor, No. 144
M. (3. Read ' _ " -.
Bangaiurc-56f} (301 ' ' -. A " '.,_;"'--z§~FPF,Y..I,ANT
(By sh:-s. Vish»%%Vané§.§ii1§iSV:Shé£1$i, ;$;;ix»'%;.;;;:e)%k'
é.I:5_D__3 .... ..
1. Dr. Ram.ach=a'ndrapf3zaLT -. '
60 yaars, 'Sic I'J£al'Lt.ip;)a~~ .__ " é . ="
Senior Uwn§:.it;1' ' . ' _ "
Shri.-V Manji1natha'CiimZc
I3£::{g;c;i:;.h§ka R0'-ad. _____ .. v
40' wars; Basappa
}.".3rivtsjj and"Owncr sf'
Her{},vI-ihnda bearing
Rcsiding at
Hasazzaikanahalli Village
Davanagere Taluk
, OppaS§i{c "in; Ccntra! .?y_i_;_1_r}r.c£
V A}\/Iiliigalii-f8, Iiapresented by
. ' -- '§?iv'i:sit11::ai'1\zfa1ié1gcr 01'
'M331331G?¢;'
--« . V_ .2 ' ,_i'~Iaiionz:Iv Ii:suran<:.t:
v Com.panj;' Limited
. "'-}{~3gidnaI0flice
a Sabharam Cempiex
144,1»/i.G.Road
"Bangazere-550 001 APPELLANT
Davanagcre Dislrici RESPON
(Shri. B. V. Prakwh Angadi, Advm;ai..<:: for Rcx1x>ndn3~ni1_N§5:?,j' afud
Reswndent N0. 2 -- Served) 'V
$!!r!1¢=!!8= ~ ' K
This Miscellaneous Firsi. Ap}::<ea4:§»--i:s ii}ed 11ii£i:,*rxS¢;.:iii.7s:3 '
1'?3( 1) of the Motor Vehicles Act T_againstf} thg: "_i1.1dge1ne:;t and
award dated 31.93.2006 passed in MVC. Na. 1C34f~2(305' flm
121:: of the I Additiunai Civfi ,__3m:ig¢;i {Sz:=nin£'"Ui\»j$i:)n_} and
Additional Motor Accidents C1aimfsV.%Tri¥3u:zaI' EH, ifiairanagere, '
awarding uumpcnsalion (.1-i'R:.~:. 76,L'i{}{}:'4.VVwiiT¥:.in.l,;;ft:sl 6% p. a,
from the date ofthe petitimg till reé§i::::1'ii0i};.._
Naii¢)na}V''17nSt:ré.nc&; .' :1' . "
Company Limited " _
Rashik Chamf:-e_m ' V.
Rfipfescn {ed by 5i is
Regi'ena!__'M:-mager
(By Shri. A. N. Krishnaswamy, Advocate)
S
«--v.173{.I} c;f,the:Al\.'I0tdr"'Ve§1icies Act against the judgement and
_fii';+_é>'f the II" ~Ad,dit§0:3a} District Judge and Member Motor
--V date (5f.p"t:.Liti.{in {iii rcai§s.a,li¢.)n.
. AA ~._'I'i"I t:sc Appeais having been heard and reserved :a,n.d
_ '::,Oming on for pmnzmncemsnt of Judgment this day, the Ceurt
' défiivcreci {he Fu}¥ow=ing:-
AND:
I. Ramachamira S Uiial
40 years, S30 Venkappa
Pczojary, Residing at
Mafihikatte, Ulial
Mangaiorc:
. Vinod Kumar, 24 years
S50 Vecrappa Poojary
Residing at Uilai
Seena Compound
Masihikailc, Azad Nagar
Surabhi Furniture, Near _ V " _
um Grama, Mangaium i_%}E1SP{)TJDENTS
IN.)
(Rcspojidemls ?\RSS; 3... giiiii .;;;f£:---- Servad)
Vfioiuieaeseuer
.§ This Mi'sc;§§]vanm't-us Firs! Appczfi is {fled under Seciiun
.ave*a,rd daicd .I*'9.(}4.2006 passed in MVC. Ne). 995,r'2G()4 on {has
2~§.<:c5i(iAc1iV{sA Tribunai -- UL Mangaiorc, D. K, awarzfiizg
co:::_;;%ensatioix*..-of Rs. 40,000?» with interest at 8% p. a from the
JUDGMEZNT
These appcais are decided by this cc3mrn<.ir;"j--L:dg£:m%:'iéi"as';
the question arising for cunsidcraiion .isicz.3mme"1n lv(;i3.§§;' V
2. The Coumsci [hr 133:: pa.r£it:.~; were: Hcar(E.._ ii
3. The apmiiani in ail it iaijf-'.I'i*€*4.*'c~:Ji2i; éfii
MFA.N0.3 }.983;'2{}06, iim «"iN'a'ii--:i11:4iInsuzaiicéi Company
Limited, a gcricrai In.s;:r.':mcc 'C;}t:if$a§1y .=jHért§_in_zi--fier referred to as
the: 'i_n$:ircr"ii3£* "bx'§:vAii£y}i_i 'Tiiie-.ii1surcr has chaiicngcd its iiabiiiiy
in satisfy liTié1_'i:ii\>'.(;£3"{Vi ;)I":;Li'1n;i£:nsali<:n in resptztst. cifrnoltir accidtzni
uia.i_m5;x; ijf{}|Jgi'}1iif5y%li}§_§'<;':Sp€G£iVt) pinion riders (iii the insured
'v§i1iis¥;7s~ 'Hf them: cases.
"jg éj§%:fi;:a_I '?y§¥~fAiNe).1}983f2006, the apps-Nani is (mt: cf the
_V ui.ai1ii'aini$§:&i:a'ri:aigncd as i't$Sp()'¥1d¢::¥1§ nu} in ?\rI'FA,N'0.i155f2f}O'?)
V' séekiing enhancement uI'cumpcn:~;ai.icm, the same: is dc-iiniwd and
' (ii:-gaiii iwilh scpamiciy.
"WE
_ enha.:1%gement.
5. The {aeis are aimmsi iiieniieai in eaieii case,-*.."I"rie"--i{§::Zrii[i;§esg
involved are muiur eycies. The insured whiiciiridifigiivihe' :-:.;.§_;me'.§n '
a rash manner had caused {he veh'i«eIe7__it':{ faii-- _ii('1~._[¥}.§: "g'ru}j'z'::j
resulting in injagries to the pi§§i(--:iii"'Eider. 'i7v'h¢s.Vi;'}v_: eaeiii
lodged eiaims for eiimpensaiimig' --he£i3fe._ the Miiiliifi Aceidersis
Ci-aims Tribunal having juri:.siii¢;{i:1fi.;'iag,;iiii.§§;,i¥:_e insured and the
insurer. The aecidefiis hadius:{:ut":?eii,fk_2n_giiilerent d.-:1.ies; during
{he year 208394. "zi?¥<}wed fin: oiaims and
ihsieneiiihe §iabi'§'ii;g2.i£i.)ir}i.'i'3,<_£1314}'rseveraiiy againsi the fiisurer, the
present appeals arefiiedg Bum {H16 91' the claimants seeking
Iifii eases, the policy :31.' insurance issued by the
_ appei!an1..__i's' {aimed as a " Package Policy". The primary questiun
' wnsidetafiun in these appeals is,
*n4:aaer:1.emsum»:snabzemmee:uwc1aanfor
wnqmtsation by the pillion rider of the itma-ed
vehicle, as :1 result ofthe accident, under the terms
afthe cantrasrt of insurance? "1
g
"W
7. It is not in dispute that the contract of
form contract and is identical in each otiothese . i
8. On behalf of the Insurer it is contended that,tVs%§etor insigntri-cc" ,
in India cannot be transacted the India
Motor Tariff for unless
specifically authorised .b}'vii. Committee
(hereinafter in accordance
with the insurance Act, 1938.
As tipsy CzenenilAi._vRe:i§ulation (GR) No.1 of the IMT, a
V. as under Section 5 of the IMT is required
itoitbe _ by the insured to the insurer before the
eotrirnenceiineutiiiof cover. As per GR No.2, the poiicies issued are
stantfiard forms issued under Section 6 of the IMT. The
is bound to execute the particular contract ofinsurance in
of two wheelers termed as "Motorist Two W'hee§er
V Package ?oiicy", on the terms and conditions prescribed by the
TAC.
&
The TAC has issued India Mulur Tariffi eITec£ivc __and in
force Iivm 01.07.2002 and lht: same supcrwdcs the 91'
the M1" in existence uptu 30.06.2002. The (.-"e4{:::£1n$a§«:3:VV:':;1§)i' Ling
insurcr would seek. in place rciianr-.:e""o'n line! saé<§'AT¢iv<5g:um--énlL'i;> '
sustain their cast: and in cafiing upmi'.{hi':sV_Cs.)url'vi¢) 'ii1.lr:rp:rel~.£A}ic:,
Lt-arms ufcunlraci, wiih raI'c:rc:1c£§"L«igi"{hc CcfLi_i'u:a:!c 1.)? Insurance,
in each cascz,
9. il:'1:é§.t.V.:'_'l§)e;reh+WiVjfify two types «of policies
ctynicmpiaficfi Fl¥}(!f;];"'l'El.€.> If1'E.iV::iy3,'M£)t{)T Tariffin terms 0fGR No.3,
namely: _
'uniy Poiicy" - This is said [0 cover third---pariy
injury or death and third---parly properly
darnE2ge.v--..' Pt;?駢)na.i accident covcr for ownepdrivcr is adsu
A xinciudcdvf
-- Q.'-)""?Aackagc Policy" ~--- This cuvcrs loss (3: damage to [he vchiclt:
" insured ("own damage") £n addiiiun to (1') above.
-1 10 :-
10. It is cunlendtzd that from 2»; piain reading of
"Package Ptjriiuy," it camml. be said l}_1_a_Llh_c ¥'i§ik: V' ~
is intended to be cm/crctd. Farther, IE3 p§"_§i;3{>s2£¥'~§,}_§itfir'1"
under Section 5 is required in "prr(§p1;sct" V
after indicating the i.hc;'fléi'r1;-A T36 Cuunscl
would dmw pariicular ailéiéiifin 25 and 26 which
read as l'ulluws;..
".24. B45 F13 Llaiiiliiiv to?
gier' bf _} }'e.s*x:7'v'¢:s
B)(}I§e«r_Vérrz;)l<})*¢:.eAs._V¢W<2;~~1Of})ersor3s' J }'esxN0
'31(3)Ur:rzg'rr1edAPags*ar;ger (No. ofpesrsorts _W_) Yesxwo
' ~ , V25.,Derw;'.s*}2 to mciude Personai Accident
V(}3"'2'«'z«'.:T3_~v£f','__z>*;>T.:e;'.?';'r"'fé;ri' Named persons?' }'e.s:x'No
gff give mzme smd Capital Sum Insured (CSO
V opiédfor. The maxirrmm CS1 availabie per persorz is
x ' ._Rs'. 2 Zakhs in the case oflprivate Cars and Rs.
V ' ' "}'Lak}2 in the case of1\/foiorised iwo whe;e£er.s*.
iiabiliiy and personal accidcani cover to the
-- ' ,_risk of avvpillion ridtzr.
. '_Ncx£ly, it is ucmicndcd that the standard furrn cuniraci
V' ugfcns with the Ibliowing prcamhie:
~: II ;--
Narrie CS1 opted (R5,)
26.Doy<:r:,¢ wisfz to irzchzde P. A. Cqsgerfbr " '
wmarrzea' Persorzsfhirer;{z)iilz'or2 passerggérgs '
(two wheeiersj V 2 V'
ifyes, give the rzmrzijer of';§é}=sons' Large! Cc2[2f£:2£
Irzsizrea' (CS1) opted, The r;1¢2.s?i§r2z:rr§"(,§S1avifii.-;vE2l¢a.g5€r
permit is Rs. 2 Zaki:--s_ )':=z_t§t.:a: 333:3 't:gf"Pr'ix*:;_te cars aria'
Rs; in case c3f}1a"<if2;r':é.'a:i1two wfzeelers. "
}\r+i£:r:E}er CS1' opted (R51)
prcmiAfiIn..._.;:)aid in each of these cases an hand is
owncéf--drive:5.'j__ There is no addiiicmai premium paid to cover the
engi»eé--;.Seeiiun 7"{1i7_1_§;_e&.Tari{'I7 is also reievanl for purpmses oi'
'¢-,e1'1":;i.rg1iv11'g* iiabiliiy in respect :1? the piifion rider, The
_ _ _ HIRERAND otweweo PILLIONPASSENGERS
--: 12 :~
"Whe:-ee.s* the Insured by a proposal and __
dated as stated in the Seheduie wiaick shat: be
basis of this eentract anti deemed' §.;~.ee L'
ineerpereted herein has to the fer ' "
insurance hereimrfler eentainesf hoe A
premium mentioned in the sefteeiutejes 7; ¢ i
for such insstrme in reaped 3
damage occurring during thee.
(The Iefm rm: wheeler
include meter '4 any ether
merttioneci in the
.ifche_du1£e}"._g -
1}- It is ui'e:_;iherVVVc;3.eienciied. 'that ihe Endnrsemeni N<e1.IMT--I8
same'read:§ félfuws:
" j'1;é.afT.'fS. PERSGNAL zi{C;'C£.§-f3EzVf!" TO UMVAMED
fiippficebie to fivfetorised Two wiseelers with or
without side Car)
";*i{§'..,,La..§;s~"bf one limb 0
»; 13 :-
"Irz C0fISi(f9Fafi0fI of the payrnerzt of are adz2'i{iQI§ga»§ -- "
prerrmzrr: if is hereby urzderstaoa' arm' agreed rig " "
irzsm-er :.ma'erta'kes to pay catrigeasaticjafi'"£o.:'_*v<::r§v.
imrzamea' hirerv'driverfar1y ur:rzLm:ec;€.. _;:jiiEE'ar2}'.sja'eacar'-.._ f
passenger* on the scaie p-ravidéa'.. A£ié:£z3w fé:af*.".a.!?¢:}a'i:3z
injury caused by vialent, 'a_':}k:£a'er:tcif, ax:Ee;rrrvr;lVV"~-gab?"
vtkfiiwie meczrks wizfisf ir:a;£itfEk:g "vif£f0/0i'If(i>. Vv_€IfI(vfl:-§"()f
dismowttirzg fi*<.;=rn' trc;iveI;'r15.§ "~.;';'zxi;F"r;.M 'the vehicle
irz.:mred which ir:deper:a'er;f2:§§"ofar{z2._g§'ih§;~r __cfause shali
withirz rhrg-2:; aafierzdcggr r:2;:ér_i'§3'z.~; .af'~t§;:a _o¢:c.1;w ezr:ce <;f's'uch
iry'ury..rc--2s;¢§frs5if;;.'_ ~
i
2} §"ea£}'z' "
E-Qf' two egvésvv-.c.>.r..«c>ne Eimb
'aj2a'_
" v.sig'}z_1't:,*;e eye
as T
' xigfzt " V '
109%
..
sz'gi':!j__ of ané eye 5 0% ~ #9:} Permanent' Total Vxfiisablementfiom Itzjzaries other that: rzamed above Pro vided always that:
(I) corrzpertsatlort shaii be payaivle artder only one of 3318 items' (1) ta (iv) above in respect ofany 5115-}:
4% IIMQ, xattlivtéttivicaling with the question whclhtsr the sutmter would be a third«~party within the T3nsg1 I*anc'e..Cc>mpany would extend to sash piition rider, the
-' S._Ltpr<:t'11t: Court has held that the icgat obiigation arising under T "Sé3¢;£ion I47 01' the Act cannot be extended to an injury or death »; 16 L-
cxtended the principic enunciated £1: Asha Rani, supra,-'~..'tt) ait other caiczgorics of vchicics aim), stating as tbtitaws: 'V am our view, altlwugh the abservatiatifitnatiai ' M in Ashe: Rani case were in cann-2c2£iam& passerzgets £2: it goods vehicie, srgm«3:' 'A with equui fbrce to graiuitotas ..
othw vehicie also. mtasi S contention of the ¢q2pel£art§t.é.»:;§ié.*a§i::g2 Conipatgv 2: awed 2:21 liab1'Iit,tr«--t;}{r*+g::¢£w zggargag __s:4fi"ered by the zieceasaed RajiruigfV'_ rider, as the policy amt rgivtlteiaf death of or bodily injagry in Va "
14. J In {}rt£éi?£ti3vI2é;s?1}'£n2;(}£;tCn.L!d V3. smmkarm 1:: :5 Ca! tnc:A:i'zz_i2':gV__\{>t' Sé'nti()n I47 ufthc Act and whethcr the tiahiiity ufthc 3 «L 17 :-
ef {he owner etthe vehicle or the piiiim} rider. oiia twwwheeier was not to be treated as at U1if(3iiif%3Ttji€i_::VJifttt{lii titre, accident has taken piaee owing to ray.'-iii azni i;eg§_igen'ti.iiidii1._giiifttie Sceuter and not on the part of the dI"ive'r_ui'an(>t§;e'rm;§hieie;. it is" L. contended that with this judgmenii[,".._i§.kizieh aiiiniisi iihe iffiview taken in Tilaic Singh, the iegali E'!_i('i)if-."'illi()i_Ti't as on date. There is nu legal liability on tf1eV--iit:§urer_t1e)_ risk to a piflion rider in any it' submitted that the appeais,i:»e'~:»z§i{)?v\i*cii§:,;z;Zr>si':--!.i.fing ii1'e""iiiebiiity of the insurer and ctinseqtientig to against the insurer in the appealin MFA :293:a;'2t:06;itt Per "the Coumset for the respondents wouid uentend as f(,)'iIli'i\?~SI* V ' n T The jieiicy of insurance in each case is a "Package Puticy"
ii . u'n'der7which the persona} accident cuver for owner-driver is i'i'iciuded. The premium payable on a policy is required to be 3 cetcuiated in accordance with the premium computation Tabiee 5 .. , fair.-'eat the requirerrzeizts of'fv{0tz;r I>'22}tic:ies Act, the ~; 18 .-
appcaring in the Tariif. There is no dispute: l¥1a%~~-;jtfc1t_i_izinj"is uompuisorily muovcrczd to cnvcr {he risk in <)w:!t:rfdfiVvcf in 63612.. of these cases. Apart {mm this, :;prc:31§u{n is 1 3331-) r't;t:{__)ve':}=:*,d inwards third-party risk. It is .§izu__11ght lu_ vncaTa;§¢ ci..Ajc:..f..'v_Lht>_.'3Cfi#ua'.li * that the Standard Ferrn conliaci pnifikidcfigas _fi)i|uws: "SECTIONII«~ L1AB£Lz:r§'%21§2'H1.j_LT%~%§;;::;?e2";ES
1. Subject :'.-fie £i:riii'.§-'V'of§5:'af}i'£§i3:gsv'zh§sf'dowr: in the ScF:edu£§;.,,,V fftéa _ "w}'z;'Z"'V}1r:de3rr:rzg)fii the ir:.s*ur'e2::¢;.I.'__ .§2};'AAV:2c§}g'dér:i caused by or ar*:':::'r;g user. £k:.s71rez2' veh:'cz'e agamst ail .s*zzx.4mj w}2Vic-h {fie '3f:i2"£l become fiegafly liairle to pay ii;?L}'€3Sy)a't2i{' S V at' bodii ' ' 10 an 'on inclu ' _ n in the insured vehicie (gravided .7 - are mu' ctgugrieci for hire or reward} 4 ' ff-2ri.;::;}2£i$-'is mgrpliedj bur wccepf so j'£zr' as it is rzezcesmry V * , _ 3'orr2par;v sheaf! not be Ziable where such (2'e3¢32'h or iryitry arises out of and Ir: the course of the erngyioyrner.-5 ofsuc}.- parser: by the irzsgmi,
--; 19 ;~ it) darrzage to property other than pmperiy beiariging ._ to the irmtred or held in trust or in Elie cusitody Q11?
ct-orzmiz' oftfte frzsured. "
16. It is Gt)I1lt..':Il(.itf«d that from a plain reading uf .i'r1atii's1. a departure lhim tht: statutory !ié.:j)itit.}aiA t:e(1iIitttd:it'!A1.i[)"iéiit'.'s]~.,,t__:t.tf3~;tf:i£' Scotiun 347 of the MV Act, thciin.+_;;:reri V the risk of death or bodily injury ttyiany pprstrfi' ingtudiriig a pcrsayn carried on the vehicle, pivieidezi siugth is not carried fur hire or reward.
The iimit ()iii:i'i-»:-tbi§.ivt§z;___iii:':-:§)iE1r as any such person sufiiczring death 0!' injury, in i*!I1ic:«..~~iCuursc of cmpi(.}ymc:2i., basing in _witixi"ti;e.....MV Act, would havt: no bearing in the .17; is that the qutastion For consideration in thtssc *.,appca¥:§ Viasiii-am iunger ms intcgra. This Court has hcid in the cast:
jii'ii.)i'v";'3.i:j€;1j/iilianz Genemi .Irm;nmce (}.:mparz_y iiimiled Ks: B, it/ii Z
--; 20 .-
Nircmjan, HCR 200? hr. 5307 Eu the effect Eiablt: to cover the risk In a pifiiun rider undctr a. 5'«pa_j¢%;age:::;xmEic«y".'« V. This has hm 12,.-uiaaa by a I)ss,'a;m;%%Bca¢%;;%%% .judge;1;_gg:%%g;:ry% this Cuzm in the cast: of ";4lIic:n2---- ._Ge:né:?rai" fraxuranca Congpany Limited Vs: 3}r:£.fi I in MFL4 7493/,200?'da£ed 25.9.2o(I &
18. It is (.}(L)¥I:-if.'f}I1i"'£."3£:_..'$(.i:.1:I?1:':1v1l.Vi§7i§..._.2;3\/fflifiiHéjliigflnldflifi of {he Supreme:
Courl, rc3iiVngTwf1'"£'h.flficffsaihtran, Supra. are in re?-aiiun :0 the Ia-garLysabgzigéin.Lteniisggiismmn 147 gr um MV Act and do nut pcria.ifI<.iu'ihc:V¢1}zitraéiita} iiahiiiiy oflhc insurer. Insmilar as v-§}fi'icrpt6ia[ic.>n ;)i_""{'n*e% c£Tecl {IF cunfiracilnal liabi?i{y of the inng.-:£Ifét.V'fi$S'V€'§'iI';£&¥:¥1&ii§ the same bar; been spccificaiiy addressed by this C_;)L:rv£.~iv:: £h'éTab()ve jtldgtzrncnls and hence there is no mcsrii. in A' ' Vthg coni,cn.1iuns nfthc Insurer.
It is aim} urged that the inleniion 01' {he insurer to cuvcr the ufrisk. in a piiiion rider is cvidenl from a Circular dated 2.6.3986 é Ofifces V' n ; 4' {3} 0rie3rzta'Z Irrsurarzce Cbrrzparzy Lifisifeci Deiin' -: 21 :- issucd by the TarilT Advisory Ctmzmilicc. This h:§.3.._»bccn exlmcted in a rcpuricci judgment of this Imumnce Company Limitea' 123-. Rxfirzaxi, same readsasfufluws: ' A' L. b "(Private and (;'ory'£der:t{<:;:'.=.4_ Is.méa'_ tF::3='7;;:;=:e éf' irzsurers carrying an C%riefaZ 'fr;.s'urar:ce?._BsI.<'§':*1es'3t, ii; Ihdia).
Tarifi" '(Vfo'}r:rz2:--'_iie}é.;'V~ __ """ H 2i'ci7V<);i"'VHo24se, 1"PYOor,
--t5,K.D:zbc2shMa:*g, . -- BarrIbay--<i00023 . 2nd.Jz.me, 1986 ~ ' 1 I}.
. 2 'j'\?¢ri;i:*tai Irisurarzce Company Limited'. Caicutta
-- ' (2) India x4.S'Siif£':ff(J'e (forrrpany Lirrzifed, " 5:;};r.*1béy =(4) Uriirea' frtdia Irtsurartce Cflfflpafly Lirnitecf, Maaws Gmrernrfierzt Irtsurarzca Furzds.' (I) Ma%Iara.s'F1tra Sz'ate, Borrrbay Es' (2) G11 jaraf Sta re, Ahrr;eda'ba'd (3) Keraia Stare, Trivarzdram (4) Karnafaka State, Barsga'Z<3re Re: Cwrtperzsaiion to pilliorz riders' Insurer aft':-Zrltiori is irwifeaez' toI_sec(i0r i}.If -,{.!"'j._'{;c:,3 f standard' fbrrrz fbr rrzatar cycle, compfa}:er:s'iV;-3_"_;:@c§fic_;2, .S')"Ie3€?59 offfze ZMT. V 4' V' It has now beer: decided thatzs"i}:é _siei}ia2'qrd rriéiior cy2:le corrzprefierzmzea policy Sfzaafd %e'f"--?f{e.2£2«iEé{y ta pilliori pa;s:s'erzge2rs tfeatirzg At1'£¢%?:1:'?3"~.c1s.o¢i;;*zz;§izé:fS"~-Er; "i'he rrzatar cgycie a_¥ki£fT.prQyi¢fe i?I§f£Z!}frliI:l1_'f0 such persons' who are rséi Act: rriéa{fbi« .}':frfei'c>tf fr: ward. }fccm=dir:g'fy,..fife afirra berzefir No. 2 gra'r2tr'r:g Zegal ~ /Zi£2fi;'li2j;:..;Ao coveflfde car passerigers will s2'a'r:a' deleted 'V " ' »;2'fIa'7._: t.5zée"';si:jeV2i:;2'czrc2' cover urtder sectiort 2 (1) (a) offhe %%--.%poz:q;:";s:: ffdrded as wider:
Egar}: or boa'i1y :'ryiz'ry to any persort irzclzzdirzg parser:
x I ysorzveyea' in or on the motor cycie provided 374:2}: 'fiersur: is fit}? carriedfirrr hire or re ward. Irzsurers are requested to issmz riecessary 1rIs2'mcI£0r:.s'-- to their Divisiorzaizifirargch ofiices accordirzg ly. 'xv 1:
._ ':36-1:'.-'l'v3fi)f3_r' _ C. C. to: Head Ufiice 0f'J\z'3:=w__,?ridi¢i}}'&.13fi:>rzaiZ£)}'ig§xi,€;:{$v" United Irza'ia'. Dez;i;;3g§;i:3;ayxc;:zm::¢:.é;4a;;;:;a--s Regiorzai Cforrzrrtirfecw... Gerzgirai-fig;-izfarfge {.70ipt¢r°a'fi'0r1 offrscfia. Tecfiriical Da:g};sr£};*;_efif, Gefivefrlfrleiflf Audit flepts. A15'0f?2I)£2}2x'{.':gi'fL'i£ tit:/L?e£Pii}";'v2' "
26. Thi:::-AC(3un:seiviii§r..i}1<: wastzki contend that ii is this inlcnlitm {fiat izziiicr St.'»£3Ei(}§} H. I. (i) (_3i' the Smndard ,.V_F0r:§fi2'ii'iC§_11iu'.z;ct. 'i'S----~~a2«:)?i£6Hdt3d that {his position has remained 'fins issuance UFIMT dated 1.8.1989 -- which has iziiiigiily such a liability under Section III .(i) of the V'-»SEandah3__iFe)mn Coniracl, ihcrtslo, as iiiiiuws:
'T.-"'Seaf£:3n II--- L__IABIL_ITY TO THIRD PARTIES
1. Subject its the of as laid down in tin;
'cheaiuie harem the Cammmp will inciemnifié the Insured in {he eveni of an caused by 01*' 2 --: 26 :-
22. In the above background and on n perusal of lit. to be noticed from the pleadings that the insurer, of objections filed before the Tribur;éiii,il not plea as to the liability, insofarns the ipillien rider. isViVconc}:riicd.,W, being absent. The insurer, howe\iei=,i.liltes gerier=,ililyl'c¢)ri'i,ended that the liability would be the policy terms and conditions. It is also to l)£'r--'.'¥";.:'Ji_tt:':d not choose to field any of The Certificate 03.' Insurance, in r'e:$ic_h been produced and marked as an exhibit, ljy c'onsen.t.i' 5}"}3e"fi;lij,r"\~¢irded contract of insurance has not been Tribunal in any ofthcse cases. It is i of Policy of Insurance that the insurer had liitbility. It is thus apparent that the insurer is caniiassinigi arguments as to the absence of its liability at length, it these éippeals and an extensive reference is made to the IMT to
-- siustiain its case. This circumstance alone places the respondents iiitiia disadvantage. Though the presurnption would be that the insured would have been provided with a fully worded Contract 5
--; 2? ;~ eflnsumnce alongwith the policy, there is no indication t_het the claimants or the Tribunal did have the be21el"It_el.l'flitfieltflul-Iy worded contract in the course cf the pra)ceedingsQl"~._Inv#§nyl'eves2.t,_ the judgment and award does not «tVtl'tg,t'1 l§.:;b,i;l"ilg_ respect of the piilion. rider were at 'reg; objections are only now raissledill by t}le-- '_e[pi)ell.r;nt--éesurer. However, in View 01' Section ;_av.l"the.l.l'ndian Evidence Act, 1372, as the tenm-;vei'eor;ti'act are in the Standard Form thetuléerne is perused at length in ad<ire:ssirIg_tl;e%ergefi:ei1teel%l.tl1e'insurer.
23. Though ltlieerefiras much vehemence in the contention that "unless premium is collected in respect of the risk to a ll}3.i_l'li"_t__;1V!11t'itllé;7,,l_tItftde1;IMT-l8, and that unless the same is reilected in peliicglttze risk would net be ceveredt Then: is no attempt 'A ll " to derrxeristrate the amount of premium payable to cover the risk
-- pillitm rider under the eompuation table, either before the .4 Tribunal or before this Court. There is reference in the Policy of 8
-: 28 ;~ Insurance to "IMT-22" in addition to "TMT-7", cases, since those two vehicles were under.an_fiiyfiotlseeationu agreement. From 3 reading of "INIT-fl7"
that the same would have no reiievginceitodeeiidg .
24. From at reading of Section Contmct which has been extracted:li'ereiinialii;iiie;'e-- be seen that it is in two parts. The risk to any person including a is without the further qoalilicéitioné' subject to payment oi' additional premium. :ieci)ndi;}:ir!_:rielates to the limit of liability in respect of solfering death or bodily injury, in the course of such liability being restricted to that conieroplated Vehicles Act. Therefore, a plain reading oi' the lirst of Section II-¥(i) would clearly indicate the intention of the j "§n's!.3_rei' to cover the risk. to 3 pillion rider. Insofar as the Personal Accident Cover under the General Regulations, General Regulation GR36 provides for Personal Z
--;3I ;--
1. Private Cars :'r:cZu'a':'r:g three wfzeeiers rc:.fkfé£i" 3 ;. ' Private cars aria' motori.s'ea' two wfzee1er.5'__.§iii!.F2 ' é wiihouf side car (rzorfbr hire": or}'éiém'i*:{},_' I.3j'or.; ir1;s*za;~eg;:1T V' or any mined parser: other IF1ari'gt}te%: Jr'§1%é:*. cmja' ~ A c£¢»3z::r;er'. .. _V Endorserraertt 1&1/IT --~-- I 5 is to
2. Private (Ears, f}2f'é%é fflvivcztez crars aria' Moforised '.f€;»r hire or r'ewar°d) '_':.::r* urzrsamed §)a.s'ser;gei*:..__£i§é§b:'t§d":2§:_IEgé~.reg.£s*1é§*ed_ carryirzg capaciljy Ofmifgc-E géffiieif his paid a'r*:'ver E}z:i¢'o}.s'er}1e:r:f 233'? I "is? its: be used.
, 3. j Ir: urea.-f:g;réct7'of"'z3££." cf' vahicies.' For paid f °~dif:isger.si, c£euréer:.:----z2r:d cortducfors. A " ~ _ V Er;Jc:r'saf}f2at2r1fizfTu« I 7 is to be zzsea'. ;yI;}.:g;3-i:s;e.t Two Whgelers with er without side car " (u5Sw3__¢_i.I'i>r hire or reward}: F :11' amiamed hirerfafiiver. IMT -- 18 is to be used. ferrtphczsis it-'supplied;
-; 32 .-
Persunal Acc£dent cuver to the Owner~D'river is covered both under the "Package JP»eii»cy" aha"
policy" --- it is only if the vehicle is ulwnezt i3j§r attceafwpenygfiggffii./at):
other entity, that this is 1s()tt._co.n_1pu§Si:ry 'and-,_ fi':_f""adei'iii(3::ai'V premium is collected.
It may be nuticect is tn be used when the without side car is used hirerfdrivea" (sic). The 0111}! '' drawn is that {he additionat premium c(3si{:§3uVis<5ri1_i,é'gxattegcted towards coverage ut' the risk to _ Own£:;'~I7river waiu3dV__:§;tssv; cuver the risk to a persun carried on the 'iazQ{I' wheelerivaeepiltityn rider as spett out under Section II 't(i) of {He Contract.
H H " isV'at.su to be seen from Sectima 3 nl't.he IMT pmviding lbr, _' Ta1*i'1"i' jfer m0ttm'z.ed Twe wheeiers, which prescribes the ?rime "Rating, fimitations as to use of the vehicte, limits or Iiabitity, schedute of premium et<;.,, atse provides fur extm ht'/¥¥£5filS that % ~: 33 1-» may be sought over and above the iiabilities that are C()\{'£'.t"l;§£i on payment oi' extra premium. If the argument on :the insurer is to be accepted, the requirement"__ui1'~..V.pa§§menti '(if addiiiunal premium to cover the rirsig have found place under the saidiiheadinfiatipage L. There is no such pruvisitm. Nor til'.-t_C()Lili1"'l*é~;=!;3i_i:;ti)ieiit(J identify any other pruviaitm ufieieir . Ativfi yifeieh prescribes the additional premium payahi(§"i{G:{L,fi1i'cIii'!.ifl6 saigi "risk.
27. inute of is the Circular that was issued tiieiyear the insurer was required to euver ii ..the"i_riiiiski,.ef a-piliieii fi'£ief DI] the c§i:'eetii.ins of the Tariff Advisory " it 'There was no requirement of payment at' any addi.tion_ai* ggiiemiam. The steep increase in the premium that was iwith the ibilewing tariIT issued in the year 1989, is an ixidieatiun that the pillien rider of a two-wheeier was also to be wavered alongwith the insured. This is apparent from Seheduiell-l(i) of the 3.989 Tariff". The same intention is @ v: 34 :-
relfected in the present Tariff as well, thuugh differently werdcd, in Section ll-l(i) of the present Tariff.
Therefure, the contention that there is no cc3.i}si<.ler;£iiii§;i.l_Zir a contractual ubligatiun. tu cover ihe:'risl("t:: a'.pill,ioii'":5icler=is nut tenable. The express provision under 'which ti_3e"i;isureri"'has--., undertaken the liability is firmly 28- It is alse.) pertinent liability in this regard, lander MV Act, which was censiiiered in Tilak Siiiglilsvesse by Supreme Cuurt and wherein it was t.ht3ugliiii'tl1e----------Eaw laid dawn as regards the insurer's Lil_iabli'iviy"te.}ipassengers in a gixxls vehicle in Aslia Ranfs case was net twwwheelers -- the szsme priaciple would apply V'-to gratixivtiius passengers in other vehicles also, was a view that ii isuught l() he questitmed in the course of arguments in .,S%iL:?taka7'car2's cast: supra, obviously for the reason that in /lsifva Rani is case it was held as follows:
é while. recording the argument put forth at
--; 35 ;~ ".23. The appiicaZn'£ity ofrhe decision of'th:'s Court in! fvmllawwa 9. Oriental Irisurarzcre Co. Ltd'. in mzzsz' be corrsidered keeping that aspect if? ' ' Section 2.35) of the 1988 Acryzoes not v.aé;;sz:;;:*.»; _ passengers in goods ca'm'age Wk-§:lF€dS:Se§?!ii?fi 4:;g3'".__ X the 1939 Act did as even pq'sSer2§éerfS b§; _*¢afr£éd»V in a veaiticle. The di ' {fence :'ii '1;':¢.--_:_~ veahic:'e" in the 1939 "
3?: the 1988 Act is si§rizf,fica;-ii. ifia_as§;:.ofthe wage in the defirzifiorts of tins irztertdea' utiraif a_ 12v cawjv my pusseiegér-,V a.§"i;;3ias w::>r22".-2 "i}i"'uca'd'ifiorz to passerrgers " dc:¢u;rrir:g i?;~c'fF:3_ 'a'.q,fiit.f§i<§;<z ofgoods whicie ii: the 1939 Act' "agéisca or'm'r_té¢;?.A' '.*3'}ii*!!ié:3tr:are, it czategarg 33 states Vthat would mean a meter vehicle X *' If _V _g_arri;:gv« goods .
Carwifig «if wss§a2.w...:s...ir_t__c;t c'i§strEt2ge", thus, is not c0gt:_:.3QIated under the ' 1;' (err1p}za'sis suppiied) ?_.fiIagsaph~I3 of Sudhakaraxfs casts, the: Court has ubscrvcd as " "'f0iI0ws:
»: 36 ;--
"13. The submission 0fMrs. Bhat, learned *' however, is tfzat this Court shomfa' not axtgzrszi. .
priricgple to the vehicles other rfzy{riAAf}tpé g:::_éa'_s "
As as' presem' advised, we may"
questiorz iii view ofsome rec;-s::..dec:;sievrV§s~ viz, Naizbrzai Irt.s*uram:e2 Co. $2. fxzxriii Ififmt ((200? 3 SCC 700];&or:;2;;é;:z ;t;;.;a;;>a;;ce C¢§.V"Ltzi?. v. Meeria Variyai [(23:13 :3 3 42f3j§%c -New Iétdia 2is.s71rar:ce_Licl. :v;"f%22.€Z'§;5'fi1i£. 486] "
The Cucsgf-hkgwcc ubscrvcd lhai. ii wouid not be diimjnfcsvani to go into the qucrsiiun. So if, is not beyuzié giogjbuhat.kgv¢§ic%L%afi 'terms 01' Section 147, the liabiiity of this; insurcr in" of an occupant 01.' a Car or the piilion VofVa"1cw:;-twhccicr, when [hm vehicles are dcsigncd to carry vWi'§i)'j_ bc invulvcd in accidcnls, being iiabic £0 be covered, vyh.cn [here is no specific exchzsion 01' such p£3¥'S()H:5. It ":L:VI:1<ii»3_rcvcr, in be nuticcd that under lht: "Liability oniy Policy" in rciaiiun to privaic cars, the cunimci o{'ir1surancc does not inc§:3(ie:
ihc uccupants uifa car, tsniikc the coniraci iizr a "Pac§<agc Poiicy"
in rcspcci ofa private car.
5'
-1 37 ;-
It is aisu significant that in the: very judgmcnigt}ii:§'~«Ci:niri has czbscrved that a contract of insunmcc, which "flOl,V$E3[i£1it)T3'}' in nature shuuid be construed fikc any iitimr ca;fintr_a.c_t."v in ailTihti.s:c cases, it cannot be said that the a;<)13tr*ac'E.'_v\?:i.:; ufa Si_2_I.t£EE:)fy nfatxzrtii', Fur the above reascns the cnvtzr the risk to the piiiiui: iédcr the appcais do nut warrant men': angtayc in deposit are to be rcmittedi. of the claimant-
Sd/-
fudge