The Jammu and Kashmir and ladakh High Court bench comprising Justice Sanjay Dhar held that unauthorised passengers cannot claim insurance in case of death or bodily injuries in motor accidents. The bench was hearing a batch of appeal against the order of Motor Accidents Claims Tribunal where the tribunal awarded compensation and resultantly appeal was preferred by the insurance company.

The bench ruled in favour of the insurance company and observed that it can be clearly seen in the insurance policy the passengers travelling in the offending truck were not protected under it as they are unauthorised passengers and hence an order cannot be passed against the insurance company to pay and recover.

In the matter at hand a labourer was also travelling in the offending truck who was also awarded compensation. The high court held that the conserned labourer was covered under the insurance polcy and hence did not intervene in the order of the tribunal with respect to him.

It is pertinent to note that the unauthorised passengers who died or were injured in the incident did not board the truck as per their own wishes but were made to do so my Army personnel. In this regard the court observed that if the people were forcibly made to board by army personnel then the issue can be taken up with them but the insurance company cannot be held liable.

The court observed taht the trial court had erred in it’s decision by relying on wrong case laws as teh ones that the tribunal relied on were cases of taxis or cases where required permits were not present. However the number of unauthorised passengers in the offending truck were many and beyond what was allowed in the policy.

CASE: NATIONAL INSURANCE COMPANY LTD. V. MUSRA BEGUM 

MA NO. 64/2007