INDIA BUSINESS WORLD - March 16th - March 31st - 2008
PASSENGERS IN GOODS CARRIAGES NOT ENTITLED FOR INSURANCE COMPENSATION, RULES SUPREME COURT
The Supreme Court has ruled that passengers in goods carriages will not be entitled for insurance compensation. The Supreme Court overruled a judgement of the Allahabad High Court in a case involving National Insurance Company, in which a person travelling in a goods carriage which met with an accident was awarded compensation.
The claimant in the case was travelling in a goods carriage when it met with an accident in June 96. The Court has ruled that the claimant was travelling as a gratuitous passenger, and not in the capacity of owner of goods or representative of owner of goods being transported in the goods carriage. This aspect was also accepted by the claimant in the claim petition.
According to National Insurance Company, the owner of the goods carriage had not taken any policy for such passengers and there was no requirement under law for obtaining a policy for passengers. According to the Supreme Court, the provisions of the Act do not enjoin any statutory liability on the owner of a vehicle to get his vehicle insured for any passenger travelling in a goods carriage.
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