Insurance companies must compensate victims of motor accidents, even if the passengers were travelling illegally in a goods vehicle, Gujarat HC has ruled. The insurer can later recover the amount from the vehicle owner, HC said. The case involved a tanker accident in Banaskantha in May 1995, which resulted in injuries and fatalities among the passengers.
Five claims were made under the Motor Vehicles Act. In 2005, a tribunal ordered New India Assurance Co Ltd to compensate the victims and later reclaim the amount from the tanker owner, as the vehicle was insured.
The insurance company contested this decision in HC, arguing that it should not be held responsible for illegal passengers in a goods vehicle. They maintained that the vehicle’s insurance did not cover passengers since it was meant to carry only one person, and the vehicle owner violated provisions of MV Act.
After hearing the case, Justice Sandeep Bhatt said, “The manifest object of provisions of MV Act is to ensure that the party, who suffers injuries due to use of motorcycle, will be able to get damages for the injuries sustained or death.
