The Divisional Manager, v. Latha Manjari Mahananda
Motor Vehicles Act, 1988 – Section 147 – 'Liability only' policy – occupants travelling in the insured vehicle are not third parties
Case brief
What is this about?
Occupant not a third party under liability-only policy; Section 147 Indian Motor Vehicles Act, 1988; Insurance Company (Oriental Insurance) not liable for occupants of Mahindra Bolero Camper Regn. No.AP-04/W-1826; Shamaraya MANU/KA/4690/2020 followed on occupants/third-party cover; Pranay Sethi (2017) 16 SCC 680 applied - 40% future prospects; Magma General Insurance 2018 ACJ 2782 applied - consortium Rs.40,000 per dependent plus 10% escalation; notional income Rs.6,500 for 2012 per Karnataka State Legal Services Authority; multiplier 17 with 50% deduction (bachelor) and multiplier 15 with 1/4th deduction (four dependents); fatal accident 27.01.2012 near KPCL, NH-63 road, Kudithini (Bellary); Tribunal award dated 06.12.2012 in MVC Nos.467 and 468 of 2012 modified; liability fastened on insurer set aside, owner held liable; enhancement to Rs.10,49,200 and Rs.14,70,500 with 6% p.a. interest; deposit within eight weeks; appeals under Section 173(1) MV Act; High Court of Karnataka, Dharwad Bench; Justice Hanchate Sanjeevkumar; decided 12.06.2025.