The New India Assurance Company Ltd vs Hydrose on 29 October, 2008
3. This clause has come up for consideration before
two Division Benches of this Court in New India Assurance
Co. Ltd. v. Hydrose (2008 (3) KLT 778) and Mathew v.
Shaji Mathew (2009 (3) KLT 813). On considering the
entire clause both the Division Benches held that since the
conditions of the policy cover the risk of a person carried in a
motor vehicle other than for hire or reward by virtue of the
conditions of the policy no additional premium is necessary
and therefore the insurance company is liable. Now the
Insurance Regulatory and Development Authority had also
issued a circular on 16.11.2009 after considering the terms
and conditions of the policy. It is stated that the above
Circular makes it clear that the insurance company's liability
in respect of occupants carried in a private car and pillion
rider carried in a two wheeler is covered under the Standard
M.A.C.A. 1884 OF 2008
-:3:-
Motor Package Policy. Therefore in the light of these two
decisions referred to above and the Circular issued by the
competent authority the policy being a package policy, the
insurance company cannot get exonerated from the liability
with respect to a pillion rider carried in a motor vehicle.
Therefore the contention of the insurance company cannot be
accepted and therefore the appeal lacks merit and the same
is dismissed.