LexBHAGYALAKSHMI AND OTHERS versus UNITED INSURANCE CO. LTD. AND ANOTHER ETC.
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[2009] 7 S.C.R. 1031 • BHAGYALAKSHMI AND OTHERS A ~ V. UNITED INSURANCE CO. LTD. AND ANOTHER ETC. Civil Appeal No. 3335 of 2009 MAY 6, 2009 B [S.B. SINHA AND DR. MUKUNDAKAM SHARMA, JJ.) Motor Vehicles Act, 1988 - s. 166 - Compensation - ' Grant of - Death of passenger travelling in a private car - ~ Liability of insurance company - Award of compensation by tribunal, however, set aside by High Court - On appeal, held: c Insurance policy is a package policy - Contract of insurance covered risk not only of third party but also of persons travelling in the car including owners - Court did not deal with package policy - As regard the question relating to coverage of third party risk which would include all persons including occupants D • of vehicle and insurer having entered into contract of ),,. insurance in relation thereto, matter referred to Larger Bench. The question which arose for consideration in this appeal is with regard to the liability of an insurance company for death of a person travelling in a private car. E Referring the matter to Larger Bench, the Court ........ HELD:1.1 The insurance policy in question is a ., package policy. The contract of insurar:ice if given its face .... -,.i value covers the risk not only of a third party but also of F person travelling in the car including the owner thereof. In the instant case the schedule of the policy does not indicate the limits of liability. It does not indicate exclusion of any person. It takes any person including 'insured'. Such person indisputably would come within the purview G ,.)- of the liability to third party . There being no limitation with regard to coverage, in terms of the provisions of the Act, no upper limit is fixed. Liability of the insurer, thus unlike the old Act, may not be limited. [Para 14 and 16] 1031 H 1032 SUPREME COURT REPORTS [2009] 7 S.C.R. A 1.2 The submission that whereas carrying of ) passenger in a goods carriage vehicle is prohibited, it is not so in a private car, may be correct but in a large number of decisions rendered by this Court it has been held that a passenger would not be a third party within the meaning B of the provisions of the Act. [Para 22] [1045-8-C] 1.3 The nature of policies which came up for consi- deration were Act policies. This Court did not deal with a package policy. If the Tariff Advisory Committee seeks to J enforce its decision in regard to coverage of third party ~ c risk which would include all persons including occupants of the vehicle and the insurer having entered into a contract of insurance in relation thereto, the matter may require a deeper scrutiny. Thus, the matter required consideration by a Larger Bench. [Paras 24 and 27] [1046-G-H; 1047-A- D B; 1049-B] l National Insurance Co. Ltd. v. Juga/ Kishore 1988 (1) -,I SCC 626; Oriental Insurance Co. Ltd. v. Rajni Devi 2008 (5) SCC 736; Amrit Lal Sood v. Kaushalya Devi Thapar 1998 (3) E SCC 744;0riental Insurance Co. Ltd. v. Cheruvakkara Nafeessu 2001 (2) SCC 491; New India Assurance Co. v. Satpal Singh 2000 (1) SCC 237; New India Assurance Co. Ltd. v. Asha Rani 2003 (2) SCC 223; United India Insurance ,... Co. Lgtd. v. Ti/ak Singh (2007) 9 SC C 263; Oriental Insurance > Co. Ltd. v. Jhuma Saha 2007 (9) SCC 263; Oriental Insurance .. • F Co. Ltd. v. Sudhakaran K. V. 2008 (7) SCC 428; New India Assurance Company Ltd. v. Sadanand Mukhi and Ors. 2009 (1) SCALE 252; United India Insurance Company MAC Appl No. 98012006 etc. decided on 31st May, 2007 by Delhi High Court; Royal Sundaram Insurance Co. Ltd. v. VA. Meenkshi G and Ors. C.M.A. No. 312 of 2009 decided by Madras High Court; National Insurance Company Limited v. Pattabhai -; ~ Ramaiah and Ors. (MFA No. 5921 and 7045 of 2006 (M. V) decided by Karnataka High Court and United India Insurance Co. Ltd. v. Alka Mang/a and Ors. AIR 2008 Delhi 201 - referred H to. BHAGYALAKSHMI AND OTHERS V UNITED INSURANCE 1033 CO. LTD. AND ANOTHER ETC. -1 Case Law Reference A 1988 (1) sec 626 Referred to Para 14 2008 (5) sec 736 Referred to Para 17 1998 (3) sec 744 Referred to Para 18 B 2001 (2) sec 491 Referred to Para 19 2000 (1) sec 231 Referred to Para 20 1 2003 (2) sec 223 Referred to Para 21 _,, 2006 (4) sec 404 Referred to Para 23 c 2001 (9) sec 263 Referred to Para 23 2008 (7) sec 428 Referred to Para 23 2009 (1) SCALE 252 Referred to Para 23 D -I AIR 2008 Delhi 201 Referr
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