Page 45 - Insurance Times Janaury 2021

LEGAL

Vehicle Insurance

Gratuitous passenger' not covered for was travelling in a goods carriage vehicle, he was not an
employee of the owner of offending vehicle; the policy
compensation under 'Liability Only
issued was only 'Liability Only Policy', no premium paid for
Policy' any gratuitous passenger travelling in the vehicle, Insurance

Chhattisgarh High Court: A Division Bench of P. R. Company cannot be held liable to satisfy the amount of
Ramchandra Menon and Parth Prateem Sahu JJ., allowed compensation against the death of Karan alias Phekan
the appeal and modified the impugned award. whose status was of 'gratuitous passenger'.
The facts of the case are such that on 18-05-2011, Karan Issue 2: The Court further observed that as far as the
ground relating to no licence is Concerned the licence itself
along with other labourers was travelling on a Dumper i.e.
was not placed on record, then it cannot be said that
'offending vehicle' to village Badeli when they met with an
Insurance Company has not discharged its burden to prove
accident due to rash and negligent driving of offending
that non-applicant No.4 was not possessing valid and
vehicle by non-applicant 4 and Karan came under the
effective driving licence, in fact, it is a case of no licence.
offending vehicle and died. A claim application under
The Court thus held that nonapplicant No.4 was possessing
Section 166 of the Motor Vehicle Act was filed before the
valid and effective driving licence is perverse and it is hereby
learned Claims Tribunal and liability to pay the compensation
set aside.
was fastened on the insurance company.
Issue 3: The Court observed that as far as the ground that
Counsel for the appellants submitted that deceased was
claimants are not entitled to any amount of compensation
travelling as 'gratuitous passenger' in a 'goods carriage
as they are not legal representatives and dependant upon
vehicle'; the driver of offending vehicle was not possessing
the deceased is concerned, it was stated that In view of
valid and effective driving licence, claimants are not entitled aforementioned evidence available on record when the
to any amount of compensation as it is a breach of
claimants have not filed any document to show their
conditions of the insurance policy.
relationship with deceased nor examined any independent
Counsel for respondents submitted that it was a burden witness of the village where the deceased was residing to
upon the Insurance Company to prove that on the date of prove that deceased was residing with claimants on the date
accident, driver of the offending vehicle was not possessing of the accident.
a valid and effective driving licence, in which, it failed and The Court respect to maintaining an application by a person
no evidence has been brought on record by Insurance not dependant on the deceased observed that "the
Company in support of their ground to prove that non- definition contained in Section 2(11) CPC is inclusive in
applicant No.4 was not possessing valid and effective driving
character and its scope is wide, it is not confined to legal
licence. heirs only. Instead, it stipulates that a person who may or
Issue 1: The Court observed that in view of undisputed facts may not be legal heir competent to inherit the property of
and evidence available on record it was clear that deceased the deceased can represent the estate of the deceased

The Insurance Times, January 2021 45