Kamla and Ors. - Appellant Versus Hanuman and Ors. - Respondent

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 - S.147, S.149 - Insurance Liability - Pillion Rider - Comprehensive Policy - IRDA Circular

Motor Vehicles Act, 1988 - S.173 - Compensation - Personal Expenses - Deduction - Dependents

Issues for determination

• Whether the insurance company is liable for the death of a pillion rider under a comprehensive policy, considering IRDA circulars.
• Whether the deduction for personal expenses of the deceased should be 1/4th instead of 1/3rd when there are six dependents.

Ratio decidendi

• The Insurance Company is liable for the death of a pillion rider under a comprehensive policy, taking note of the circular issued by IRDA, and appeals pending on this ground should be withdrawn.
• For personal expenses of the deceased, the deduction should be 1/4th instead of 1/3rd when the deceased has six dependents (four children, wife, and mother), in accordance with the law laid down in Sarla Verma.

Important points

• Held, Insurance Company is liable for pillion rider under comprehensive policy, appeals on this ground to be withdrawn as per IRDA circular.
• Clarified, deduction for personal expenses of deceased with six dependents should be 1/4th, not 1/3rd, following Sarla Verma.
• Directed, compensation enhanced by Rs. 48,000/- along with 9% interest, payable by Insurance Company.

Keywords