Passenger Killed In Son’s Car Was Not A Third Party: Chhattisgarh HC Upholds ₹1 Lakh Policy Award

On 22 March 2022, Kunti Dubey died when the car in which she was travelling as a passenger was involved in an accident.

The car was owned by respondent No. 1 and driven by Rajat Kumar Dubey.

The appellant, a legal heir of the deceased, claimed compensation under Section 163-A of the Motor Vehicles Act, 1988.

The Claims Tribunal awarded Rs. 1,00,000, finding that the insurance policy provided contractual passenger coverage of that amount per person.

The claimant appealed under Section 173 of the Act, seeking enhancement.

The High Court first condoned a 54-day delay in filing the appeal.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988, against an award made on a claim under Section 163-A.

The Court applied the distinction between a third party and a passenger in the insured vehicle and considered the insurer’s liability as provided by the policy.

The policy covered personal-accident risk for passengers, with a maximum liability of Rs. 1,00,000 per person.

The deceased was travelling in the insured car and was therefore a passenger, not a third party to that vehicle.

The Tribunal had considered the policy’s passenger coverage and awarded the applicable contractual amount of Rs. 1,00,000.

The High Court found no basis to classify the deceased as a third party or to enhance the award beyond that coverage.

It dismissed the appeal at the admission stage as devoid of merit, having condoned the filing delay, and made no order as to costs.