Insurer not liable for person travelling in goods vehicle: SC

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New Delhi, Nov 6 (UNI) The Supreme Court has held that a insurance company has no liability towards passengers travelling in a goods carriage.

A bench comprising Justices Arijit Pasayat and P Sathasivam in their judgment observed, ''the inevitable conclusion, therefore is that provision of the Act do not enjoin any statutory liability on the owner of a vehicle to get his vehicle insured for any passenger travelling in a goods carriage and the insurer would have no liability therefore.'' The apex court upheld the contention of Oriental Insurance Company Ltd and others that since the vehicle involved in the accident is a Tata truck which is a goods vehicle and therefore the insurance company is not liable to pay compensation under the Motor Vehicles (MV) Act and agreed with the Imphal bench of Gauhati High court taking the same view.

The apex court, however, remanded back the appeal of Mrs Thokchom Ongbi Sangeeta and others to the High court for fixing the liability to pay the amount awarded as compensation.

The motor accident claims tribunal has awarded a compensation of Rs 2,99,464 in one claim petition while in other the award was Rs 1,62,000. Both the awards were made on December 31, 2002.

The accident took place on December 19, 1994 when a Tata truck was proceeding towards Mizoram.


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