An Act policy covers tractor-trailer loaders under Section 147 without additional premium.

On 15 November 2019, two labourers were injured when a tractor-trailer carrying sugarcane overturned.

One, Mahaveer Chikkodi, died on 8 November 2020; the other, Kallappa Badiger, claimed compensation for his injuries

The Motor Accidents Claims Tribunal partly allowed both petitions, awarding ₹1,82,757 and ₹4,56,522 respectively, with interest at 7% per annum, and directed the owner and insurer to pay jointly and severally

The insurer appealed, disputing its liability, relying in part on the absence of additional premium for the labourers, and seeking to reduce interest to 6% per annum

1. Whether the Tribunal was justified in fastening liability on the owner and insurer in respect of the tractor-trailer accident, including the risk of the labourers travelling on it

2. Whether the Tribunal was justified in awarding interest at 7% per annum rather than 6% per annum

Section 147 of the Motor Vehicles Act, 1988, was applied in light of the principle that the risk of workmen or loaders on a tractor-trailer used to transport agricultural produce may be covered under an Act policy without additional premium.

The Court relied on the Karnataka High Court’s decision in Mounesh S/o Basavantappa v. Thimmanna S/o Muddanna Yerakamatti, MFA No. 6794/2004 c/w MFA No. 135/2004, decided 30 June 2010, which treated a tractor and trailer used to carry agricultural produce as a goods carriage and held that the risk of workmen/loaders was covered under Section 147

The Court also considered the terms of the policy, including its limits of liability and provisions concerning persons entitled to drive

The Court rejected the insurer’s challenge based on the one-day interval before the complaint was filed, finding the delay negligible in the circumstances, and found no evidence of collusion or manipulation

It also declined to entertain the objection that the vehicle owner had not been joined, as that objection had not been raised before the Tribunal

The insurer’s witness admitted that the driver held a valid licence, the vehicle was insured on the accident date, and the police had filed a charge sheet concerning the accident

Applying Mounesh, the Court held that the labourers’ risk was covered notwithstanding the insurer’s contention that no additional premium had been paid

On interest, it found no reason to reduce the Tribunal’s 7% rate, noting the accident occurred in 2019 and the rate reflected prevailing bank interest rates

Both appeals were dismissed; any amount deposited was directed to be transmitted to the Tribunal, and pending applications were disposed of