In a landmark judgment, the Bombay High Court has held that in the event of an accident, the pillion rider of a two-wheeler, or passengers in any type of vehicle, are eligible for compensation from insurance companies.
A division bench comprising Justice A P Shah and Justice Abhay Oka asked the New India Insurance Company to pay to Rs 25,000 to Nerul resident Ajay Bhoir, with interest calculated at the rate of nine per cent until realisation.
On September 7, 2002, Bhoir was riding pillion on his friend Avinash Jadials motorcycle when the duo met with an accident.
Bhoir fractured his skull and dislocated his upper jaw. The accident resulted in a permanent, partial disability for Bhoir, who then filed a compensation claim with New India Insurance Company.
The Motor Vehicles Tribuna,l however, asked Jadial to recompense Bhoir, as the former owned the bike and was riding it at the time of the accident this, said the insurance company, absolved them of any liability. They also claimed the owner of the vehicle had not paid any extra premium to cover the pillion rider.
Bhoir challenged this stand in the high court. His counsel M B Kotak told the court that the tribunal had relied upon the older Motor Vehicles Act of 1939 in this case, instead of the modified 1998 Act. Under the new Act, the insurance company cannot be absolved of its liability towards the pillion rider of the motorcycle, said Kotak.
The HC upheld Bhoirs contention and ruled that any insurance policy covering third party risk will be required to pay compensation to the pillion rider or passengers travelling in a vehicle at the time of the accident.
Before the HC order
Insurance companies were required to pay compensation only to the owner of the vehicle, and to a third party whose property was damaged or life lost in the accident.
After the order
The insurance company will also have to recompense the pillion rider or passengers travelling in a vehicle at the time of the accident.
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