An insurer cannot avoid liability on an unpleaded and unproved goods-vehicle passenger defence.

On 13 April 2015, Vikrambhai Chekhaliya, who was travelling as a labourer on a fertiliser-carrying dumper, came into contact with a live electric wire, suffered electrocution injuries and later died.

His legal heirs sought compensation, alleging that he was employed as a labourer and earned ₹6,000 per month.

The Motor Accident Claims Tribunal, Ahmedabad Rural, allowed the claim petition.

The insurer appealed under Section 173 of the Motor Vehicles Act, 1988, contending that the deceased was an unauthorised passenger travelling on the dumper’s rear deck in breach of Rule 122(a) of the Gujarat Motor Vehicles Rules and the policy terms.

Whether the insurer established that the deceased was an unauthorised passenger whose carriage was not covered by the policy or applicable law.

Whether the Tribunal’s award should be modified or set aside on the insurer’s challenge.

Section 173 of the Motor Vehicles Act, 1988, provided the basis for the insurer’s appeal.

The insurer relied on Section 147 of the Act, Rule 122(a) of the Gujarat Motor Vehicles Rules, and the policy terms to argue that the deceased’s carriage was not covered.

The Court did not determine the substantive scope of those provisions; it resolved the appeal on the insurer’s failure to plead and prove its asserted defence.

The Court noted that the insurer’s written statement did not specifically plead that the deceased was an unauthorised passenger or that his carriage breached the policy or applicable rules.

Further, the insurer’s witness accepted that the vehicle’s stated passenger capacity was five, and the Tribunal had found that the deceased was employed as a labourer to load and unload fertiliser.

In these circumstances, the insurer had not established its appellate contention, and the Court declined to interfere with the award.

It directed the Tribunal to disburse the awarded amount, with accrued interest, to the claimants after verification and completion of due procedure, deducting any unpaid court fees in accordance with law.