Insurance company cannot avoid liability when the deceased was traveling in a goods carriage to safeguard his goods

Chhattisgarh High Court Upholds Compensation for Deceased Goods Keeper in Motor Accident Case. Insurance Company Held Liable Despite Claims of Unauthorized Passenger Status

In a significant ruling, the Chhattisgarh High Court has upheld the decision of the Additional Motor Accident Claims Tribunal, Pratappur, holding Tata AIG General Insurance Company Ltd responsible for compensating the family of Anand Tirkey, who died in a motor vehicle accident. The court dismissed the insurance company's appeal, which contended that Tirkey was a gratuitous passenger and not covered under the insurance policy.

The incident occurred on May 13, 2016, when Tirkey was traveling in a goods vehicle to safeguard his goods. The vehicle, driven negligently by the driver, overturned, resulting in fatal injuries to Tirkey. The Claims Tribunal awarded a compensation of Rs.7,45,000 to Tirkey's family, which was challenged by the insurance company on the grounds that the deceased was an unauthorized passenger.

The High Court, presided over by Justice Amitendra Kishore Prasad, examined the evidence and upheld the Tribunal's decision, stating that the insurance company failed to prove that Tirkey was a gratuitous passenger. The court emphasized that Tirkey was traveling with his goods, a legitimate purpose under the Motor Vehicles Act, 1988, and thus, the insurance company was liable to pay the compensation.

The judgment reaffirmed the legal principle that insurance companies bear the onus of proving any claim of gratuitous passenger status to avoid liability. The court noted that previous judgments cited by the insurance company were not applicable, as they involved scenarios where passengers had no connection to the goods being transported.

This ruling is a crucial affirmation of the rights of individuals traveling with goods in insured vehicles and underscores the statutory and contractual obligations of insurance companies to honor compensation claims in such contexts.

Bottom Line:

Motor Vehicles Act - Insurance company cannot avoid liability to pay compensation when the deceased was traveling in a goods carriage to safeguard his goods during transit.

Statutory provision(s): Motor Vehicles Act, 1988 Section 147

Tata AIG General Insurance Company Ltd v. Jagrani Tirky, (Chhattisgarh) : Law Finder Doc Id # 2796582