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13.5.In this case, sweeping argument of the learned counsel for the insurance company is that the insurance company is not liable to pay the compensation to the occupants of the car without making any extra premium cannot be accepted without any evidence.

14. Under Section 64 U C of the Insurance Act, the insurance company shall follow the Tariff and Advisory committee, the rules, regulation, rates, advantage, terms and conditions for the transaction of the Motor Insurance Business in India and from 2007 onwards IRDA Insurance https://www.mhc.tn.gov.in/judis C.M.A(MD). Nos.465 & 1039 of 2016 Regulatory and Development Authority the direction to the insurance company is in force for the above said purpose. Till 31-12-2006 the Tariff Advisory Committee and, thereafter, from 1-1-2007 IRDA functioned as the statutory regulatory authorities and they are entitled to fix the tariff as well as the terms and conditions of the policies issued by all insurance companies. Therefore, the insurance company is bound by the circular issued by the IRDA.

All existing Policies may be deemed to incorporate the above amendment as the above decision is being brought into force with effect from 25th March, 1977.” The said circular has been followed by the insurance company till date.

15.The IRDA also reiterated the said circular, by issuing another following official circular dated 16.11.2009:

IRDA Ref: IRDA/NL/CIR/F&U/073/11/2009 November 16, 2009 To CEOs of all General Insurance Companies Re: Liability of Insurance Companies in respect of Occupants of a Private Car and Pillion rider on a Two-Wheeler under Standard Motor Package Policy [also called Comprehensive Policy].

16.It is pertinent to note that the learned counsel appearing for the insurance company has submitted argument with unintended ambiguity over the above settled issues of covering the liability to the occupants of the car and the pillion rider of the two wheeler under the misnomer of the Act policy and the Comprehensive policy without taking note of the circular of “standard motor policy” which emphasized M.V. No. 1 of 1978 - dated 18th March, 1978 [regarding occupants carried in Private Car] effective from 25th March, 1977, MOT/GEN/10 dated 2nd June, 1986 [regarding Pillion Riders in a Two-Wheeler] effective from the date of the Circular and IRDA/NL/CIR/F&U/073/11/2009 November 16, 2009. The IRDA once again reiterated the same by issuing the another following circular during the course of the hearing of the larger issue before the Delhi High Court in the case of Yashpal Luthra v. United India, reported in (2012) 2 TN MAC 625: