goods vehicle - The Legal Chamber

This Supreme Court judgment reaffirms that an insurance company is not liable to indemnify for accidents involving fare-paying passengers in a goods vehicle, as it constitutes a fundamental breach of policy terms. The Supreme Court declined to apply the "pay and recover" principle in such scenarios, absolving the insurer of the liability to pay compensation. Facts Of The Case: The case originated from a fatal accident where the deceased was a passenger traveling in a three-wheeler goods vehicle after paying a fare. The legal heirs of the deceased (the petitioners) filed a claim before the Motor Accidents Claims Tribunal. The Tribunal awarded compensation and directed the insurer, HDFC Ergo, to pay the amount, dismissing its contention that covering a fare-paying passenger in a goods vehi...

This Supreme Court judgment holds that under Section 147 of the Motor Vehicles Act, 1988, an insurer is liable to indemnify claims for the owner of goods or his authorized representative traveling in a goods vehicle. Furthermore, the registered owner remains liable for compensation until a transfer is formally reported to the Registering Authority under Section 50, and the insurer cannot avoid its liability based on unsubstantiated assertions. Facts Of The Case: A motor accident involving a goods vehicle resulted in several claims for death and injury. The injured and deceased were petty hawkers, such as a fish monger and a vegetable vendor, who were accompanying their goods in the vehicle at the time of the accident. The insurance company contested its liability on two primary gro...

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Pay and Recover Not Allowed: Supreme Court Shields Insurer in Goods Vehicle Passenger Death Case

Supreme Court Shifts Liability Back to Insurance Company in Landmark Motor Accident Case