Thaindian News

New Delhi, Dec 13 (IANS) Families of pillion riders of two-wheelers and car passengers who die in road accidents will now be eligible for monetary compensation from insurance companies, thanks to the Delhi High Court.
There is only one caveat: the vehicle must be insured.

Formulating a new comprehensive insurance policy for vehicles, Justice J.R. Midha asked the insurance companies to strictly follow the guidelines to cover pillion riders and passengers of cars and other vehicles.

The court gave the ruling after hearing an appeal by Yash Pal Luthra seeking higher compensation on account of his 24-year-old son’s death in the capital in 2006 while riding the pillion of a motor vehicle.

The Motor Accidents Claims Tribunal (MACT) had earlier agreed with the insurance company’s contention that it was not liable for the pillion rider.

The tribunal had asked the motorcycle owner to pay over Rs.453,000 to the Luthra family.

The Delhi High Court has reversed the tribunal’s ruling.

“It is clear that the comprehensive policy of a two-wheeler covers a pillion rider and the comprehensive package policy of a car covers the occupants,” the court said.

Seventeen insurance companies admitted their liability in respect of the occupants of a private car and the pillion riders of a motorcycle under a comprehensive insurance policy.

Following this week’s high court judgement, all accident cases pending in different courts in Delhi will have to adhere to the new guideline.

Insurance companies have also agreed to withdraw all the appeals filed by them before various high courts in the country on this aspect.