Page 344 - Motor Insurance Ebook IC 72

The Insurance Times

Q.1. Who is a Gratuitous Passenger. What is his legal
Ans: entity as per Motor Vehicle Act?
A policy of insurance is not required under MV Act to
cover risk to passengers who are not carried for hire or
reward.(SC 1977). Pushpabai P. Udeshi Vs. Ranjit
Ginning & Pressing Co. As a result of this case TAC
had amended the wording of the TP Section II of the
Motor Comprehensive/Package policy for Private car
and Two wheelers.

Now the package policy has to include "Occupants
traveling the motor vehicle provided that such occupants
are not carried for hire or reward. This stand is recently
reiterated by IRDA issuing directions to insurers not to
make any changes in this cover.

Under MV Act, 1988 insurance policy covering Third
Party risk is required to exclude gratuitous passengers
in a vehicle no matter the vehicle is of any type of class.
(SC 2000) New India Assurance. Co. Ltd. Vs. Satpal
Singh. A sequel to this case was New India Vs. Asha
Rani & others (SC 2002).

The definition of "goods vehicle" in 1939 MV Act
included carriage of passengers in addition to goods
whereas under the MV Act, 1988 definition of "goods
carriage" specifies only "carriage of goods" in the

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