and Others reported in (2000) 1 SCC 237 the Supreme Court was considering the case of a 10 year old girl who met with her death in a truck accident. Her father, brother and sister sought compensation for her death under the M. V. Act, 1988. The Learned Motor Accidents Claims Tribunal passed an Award for a sum of Rs.25,000/- (Rupees twenty five thousand) only, to the Claimants. The owner of the truck was found liable to pay the compensation amount. The Insurance Company had been directed to pay the compensation as the vehicle was then covered by an Insurance Policy issued by that Company. The Insurance Company appealed against the Judgment and put forth the contention that the deceased was a gratuitous passenger in the truck and hence, no liability could be fastened on the insurer. The Division Bench of the High Court dismissed the Appeal filed by the Insurance Company which was then before the Hon’ble Supreme Court. After considering the matter, the Hon’ble Supreme Court reasoned that the Appellant had banked on the decision in Mallawwa vs. Oriental Insurance Company Limited to resist the liability, on the premise that the victim of the accident was a gratuitous passenger in the vehicle covered by the Insurance Policy. The Supreme Court opined that the decision was rendered under Section 95 of the Motor Vehicles Act, 1939. That, as per the proviso to the said Section when read with Clause (ii) it is clear that the Policy of Insurance shall not be required to cover liability in respect of the death of or bodily injury to persons who were gratuitous passengers of that vehicle. The provision of Section 95 of the M. V. Act, 1939, was compared to Section 147 of the M. V. Act, 1988. It was concluded as follows;
