Jammu And Kashmir High Court: Insurance Company Not Liable To Unauthorised Passengers Travelling In Offending Vehicle, Pay And Recover Principle Not Applicable

The Jammu and Kashmir and Ladakh High Court in the case National Insurance Co. ltd.Vs Mursa Begum and ors observed that once it is being shown that deceased or injured persons were traveling as unauthorised passengers in an offending vehicle and their risk is not covered under the terms insurance policy, thus, the insurer cannot be saddled with the liability to compensate them and even the principle of ‘Pay and Recover’ will not be attracted.

The bench headed by Justice Sanjay Dhar in the case observed, wherein an appeal has been filed by an Insurance Company against an award passed by the Motor Accidents Claims Tribunal, Doda for granting compensation in favour of the claims made by or on behalf of unauthorised passengers traveling in a load carrier truck, alleging driven in a rash and in a negligent manner.

The counsel, Adv. Dinesh Singh Chouhan appearing for the Insurance Company in the observed and has remised his appeal on the ground that the deceased or injured in the case were travelling as gratuitous passengers and as such, the risk to life was not being covered under the policy of insurance.