Topic
The Himachal Pradesh High Court held that an insurer bears no liability for a gratuitous passenger in a goods vehicle under Section 147 MV Act, quashing the tribunal's 'pay and recover' direction as jurisdictionally impermissible. The vehicle owner was made directly liable for ₹14.79 lakh compensation with 6% interest.
The Andhra Pradesh High Court ruled that insurers cannot evade liability under Section 147 of the Motor Vehicles Act merely because the deceased was a gratuitous passenger traveling with goods in an insured vehicle. The judgment clarifies that ownership of the consignment is irrelevant for compensation claims, impacting accident victims and insurers alike.
The Madhya Pradesh High Court ruled that insurance companies cannot be compelled to compensate uninsured passengers in goods vehicles, as the policy excludes such risk. The court set aside the 'pay-and-recover' order, reinforcing that liability rests solely with the vehicle owner and driver, not the insurer.