GRATUITOUS PASSENGERS ARE NOT ENTITLED TO CLAIM COMPENSATION FROM THE INSURANCE COMPANY AND THE COMPANY CANNOT BE DIRECTED TO PAY THAT AMOUNT: MADRAS HIGH COURT
The High Court of Madras passed a judgment on 26 April 2023 stating that gratuitous passengers are not entitled to claim compensation from the Insurance Company and the company cannot be directed to pay that amount.It was stated in the case of UNITED INDIA INSURANCE COMPANY Vs. SELVAN (CMA(MD).190/2023) which was passed by the single judge bench comprising of HONOURABLE JUSTICE N.SATHISH KUMAR
FACTS OF THE CASE:
The deceased Anish, was aged about 19 years at the time of accident and he was a student at Sankarapuram Polytechnic College. On 8.2.2013, the deceased travelled in a tempo van bearing Registration No. TN 79 L 5954 along with 20 other members. The said van was driven by its driver in a rash and negligent manner and while negotiating in a bend, the van s capsized and as a result, the deceased and other passengers who travelled in the tempo van sustained severe injuries and deceased and another one person died and others sustained injuries. According to the second respondent/owner of the vehicle he never allowed any passengers to travel in the transport vehicle, if at all any compensation is ordered, only the third respondent is liable to pay the same. The third respondent took a stand that the first respondent is not having valid driving licence and no valid policy at the time of accident and the deceased travelled as a gratuitous passenger and hence the Insurance Company is not entitled to pay any compensation.
JUDGEMENT OF THE CASE
The Honourable Apex Court directed the claimant to withdraw the amount as it was already deposited. But the law on the issue is well settled that gratuitous passengers are not entitled to claim compensation from the Insurance Company and the company cannot be directed to pay that amount and then to recover the said amount from the owner of the vehicle. Such being the position, particularly, in respect of the gratuitous passengers, the Tribunal has granted such a direction, which cannot be permissible under the law. Accordingly, the direction of the Insurance Company to deposit the award amount at the first instance and then to recover the same from the owner of the vehicle alone is set aside. In all other aspects, the judgment of the Tribunal is upheld. It is well open to the respondents claimants to recover the award amount from the owner of the vehicle in the manner known to law. With the above directions, the Civil Miscellaneous Appeal is allowed. No costs. Consequently, connected Miscellaneous Petition is closed.
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JUDGEMENT REVIEWED BY ROSHNI SABU, KERALA LAW ACADEMY LAW COLLEGE.