Insurer's appeal against Tribunal award of Rs.9,22,200/- to claimants of a deceased gratuitous passenger in an overturned tractor-trolley. The insurer pleaded Act Only Policy coverage limits and driver's licence breach. The High Court found no merit and upheld the award fastening liability on the insurer.
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2025:CGHC:47356
Digitally ABHIGYA signed by SAXENA ABHIGYA SAXENA
NAFR
HIGH COURT OF CHHATTISGARH AT BILASPUR
MAC No. 351 of 2018
1 - Branch Manager The New India Insurance Company Ltd., Branch Office, Bhilai, Address- First Floor, Above Dena Bank, Nandini Road, Power House Bhilai, Tehsil And District Durg, Chhattisgarh (Insurance Company Of Vehicle Trolley No. C.G.07-Z.G.-0634), District : Durg, Chhattisgarh
... Petitioner(s)
versus
1 - Smt Ishwari Bai Alias Rajeshwari Sahu W/o Late Devi Prasad Sahu Aged About 34 Years R/o Village Navagaon Thana Bori, Tehsil And District Durg, Chhattisgarh, District : Durg, Chhattisgarh
2 - Chela Ram Sahu S/o Late Devi Prasad Sahu Aged About 15 Years Minor Through Mother Smt. Ishwari Bai Alias Rajeshwari Sahu W/o Late Devi Prasad Sahu, R/o Village Navagaon Thana Bori, Tehsil And District Durg, Chhattisgarh, District : Durg, Chhattisgarh
3 - Ku. Yashoda Sahu Alias Yamini Sahu D/o Late Devi Prasad Sahu Aged About 11 Years Minor Through Mother Smt. Ishwari Bai Alias Rajeshwari Sahu W/o Late Devi Prasad Sahu, R/o Village Navagaon Thana Bori, Tehsil And District Durg, Chhattisgarh, District : Durg, Chhattisgarh
4 - Tulsi Sahu S/o Late Devi Prasad Sahu Aged About 1 Years Minor Through Mother Smt. Ishwari Bai Alias Rajeshwari Sahu W/o Late Devi
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Prasad Sahu, R/o Village Navagaon Thana Bori, Tehsil And District Durg, Chhattisgarh (Claimants), District : Durg, Chhattisgarh
5 - Mithilesh Kumar Dewangan S/o Kaushal Dewangan Aged About 22 Years R/o Sirsa Khurd (Jevra Sirsa) Chowki Jevra Sirsa, Tehsil And District Durg, Chhattisgarh (Driver Of Vehicle Tractor No. C.G.07-N.A.2903 And Trolley No. C.G.07-Z.G.-0634), District : Durg, Chhattisgarh
6 - Kaushal Prasad Dewangan S/o Nandlal Dewangan Aged About 47 Years R/o Jevra Sirsa (Sirsa Khurd) Near Tank, Chowki Jevra Sirsa, Tehsil And District Durg, Chhattisgarh (Registered Owner Of Vehicle Tractor No. C.G.07-N.A.-2903), District : Durg, Chhattisgarh
7 - Branch Manager H.D.F.C. Argo General Insurance Company Limited, H.D.F.C. House, First Floor, 165-166 Bekbey, Recall Mession, H.T.Parek Marg, Church Gate, Mumbai (Maharashtra) (Insurer Company Of Vehicle Tractor No. C.G.07-N.A.-2903), District : Mumbai, Maharashtra
8 - Vashudev Banchor S/o Khilawan Prasad Banchor Aged About 39 Years R/o Village Basing, Police Chowki Jevra Sirsa, Thana Pulgaon, Tehsil And District Durg, Chhattisgarh (Owner Of Vehicle Trolley No. C.G.07-Z.G.-0634), District : Durg, Chhattisgarh
... Respondent(s)
Mr. Harshmander Rastogi, Advocate on behalf of Mr. N. K. Thakur, Advocate, Mr. Sudhir Agrawal, Advocate, Mr. Prasanjeet Dutta, Advocate and Mr. Amit Nayak, Advocate on behalf of Mr. Gautam Khetrapal, Advocate for their respective parties.
Hon’ble Shri Justice Amitendra Kishore Prasad
Order on Board
15.09.2025
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the 4th Additional Motor Accidents Claims Tribunal, Durg (C.G.) in Claim Case No.2547 of 2012, in which compensation of Rs.9,22,200/- has been granted in favour of the claimants fastening liability upon the insurance company.
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registration no. CG-07-ZG-0634 was insured under an Act Only Policy , which provides coverage only for third-party risks. As per the pleadings and evidence, including the deposition of the insurer’s witness Mr. Deepak Malik and the insurance policy marked as Exhibits D-1 and D-5, the said trolley had zero seating capacity and was being used for the transportation of bricks. It is an admitted fact in the pleadings that the injured claimants were travelling in the offending vehicle as a gratuitous passenger, who do not fall within the definition of a "third party" under Section 147 of the Motor Vehicles Act. Moreover, no premium was paid to cover any occupants, and thus the insurance coverage was limited strictly to third-party liability. Additionally, it is on record that the vehicle was being driven by Mithlesh Kumar without a valid driving licence, which constitutes a fundamental breach of policy conditions. In view of the judgment of the Hon’ble Supreme Court in Shivraj v. Rajendra, (2018) 10 SCC 432, and Jagtar Singh v. Sanjeev Kumar, (2018) 15 SCC 189 , where the insurer was held not liable under similar circumstances, he further prays that the liability, if any, may be fastened on the owner and driver of the vehicle, and alternatively, in the interest of justice, a direction to "pay and recover" may be issued against them.
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Sections 147 and 149 of the Motor Vehicles Act, 1988, and failed to appreciate that the claimants, as per the FIR and Final Investigation Report, were travelling as a gratuitous passenger in the offending tractor-trolley, which had no seating capacity except for the driver. The Tribunal overlooked the admitted position and statutory restrictions under Rule 28 of the Rules of the Road Regulations, 1989, and Rule 220 of the Chhattisgarh Motor Vehicle Rules, 1994. The risk of such passengers is not covered under the policy nor within the scope of "third party" as defined under Section 147 of the Act. Furthermore, the Tribunal failed to consider that the vehicle was being used in violation of its registration conditions and the driver did not hold a valid and effective driving licence. No cogent evidence was adduced by the claimant to establish rash and negligent driving by respondent no. 2, who himself denied liability in his testimony. The appellant’s witness substantiated the defences raised in the written statement, and relevant case law cited was not properly appreciated by the Tribunal. The findings are perverse, arbitrary, and based on conjecture, warranting the setting aside of the award, with the liability to compensate the claimant resting solely on the owner and driver of the offending vehicle. The appellant, therefore, respectfully prays that this Court be pleased to quash and set aside the impugned award.
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facts, and circumstances of the case. He goes on to submit that the learned Tribunal has failed to award just, fair, and adequate compensation under various heads and has instead granted a grossly inadequate amount, thereby causing serious prejudice to the appellants. The Tribunal erred in assessing the compensation. In light of the above, the appeal filed by the appellant is liable to be dismissed and the amount of compensation is liable to be enhanced to ensure justice is done to the claimant.
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evidence, including the FIR and Final Investigation Report, establishing negligence and resulting injury to the claimant. The insurer’s plea of non-liability under an Act Only Policy and breach of conditions is a matter between the insurer and the owner and driver does not absolve the liability to compensate the claimant. Considering the settled principles that the claimant is entitled to just and fair compensation, this Court finds that the impugned award does not warrant interference.
Sd/-
( Amitendra Kishore Prasad ) JUDGE
Saxena
1 issue framed by the court
Whether an insurer under an Act Only Policy is liable to compensate a gratuitous passenger travelling in an insured tractor-trolley that overturned due to negligent driving.
Colour shows how this judgement treated each authority
Shivraj v. RajendraReferred
(2018) 10 SCC 432 · Who else cites this
Jagtar Singh v. Sanjeev KumarReferred
(2018) 15 SCC 189 · Who else cites this
2 provisions across 1 enactments
Branch Manager The New India Insurance Company Ltd., Bhilai
Smt Ishwari Bai Alias Rajeshwari Sahu
Chela Ram Sahu
Ku. Yashoda Sahu Alias Yamini Sahu
Tulsi Sahu
Mithilesh Kumar Dewangan
Amitendra Kishore Prasad
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
