Insurance Company Can’t Escape Liability By Contending That Two-Wheeler Bundled Policy Doesn’t Cover Pillion Rider: Madras High Court
The Madras High Court was considering an appeal filed by an Insurance Company.
While directing the Insurance Company to pay the motor accident compensation to the claimants, the Madras High Court has held that a Two-wheeler Bundled Policy also covers payment of compensation to the occupants in the two-wheeler, including the pillion rider, and the Insurance Company cannot escape its liability by contending that such a a policy does not cover the pillion rider.
The High Court was considering a Civil Miscellaneous appeal filed by the insurance company challenging the liability fixed on it to pay the compensation awarded in a motor accident case.
The Division Bench of Justice C.V. Karthikeyan and Justice K.Rajasekar held, “Further the accident had taken place within the Third Party Coverage period, hence the insurance company is liable to pay the compensation. As we have elaborately discussed regarding the scope of Section II – Liability of Third parties in the ‘Two-Wheeler Bundled Policy’ in the earlier judgment made in C.M.A.No.3882 of 2026 dated 25.03.2026, wherein it has been held that a Two-wheeler Bundled Policy also covers, payment of compensation to the occupants in the two-wheeler, including the pillion rider. Therefore, the insurance company cannot escape their liability by contending that the Two-wheeler Bundled Policy does not cover the pillion rider.”
Advocate D. Harikrishnan represented the Appellant.
Factual Background
The respondents as claimants, had filed a claim petition, seeking compensation for a sum of Rs 30 lakh for the death of one Rahamathulla who met with an accident while travelling as a pillion rider on a two-wheeler which was driven by his friend, who is the fourth respondent, Ramprasath. It was further stated that the said Ramprasath had driven his two-wheeler in a rash and negligent manner and hit the reflector board kept on the road. Subsequently, Rahamathulla succumbed to his injuries. The fifth respondent was the owner and the appellant was the insurer of the said two-wheeler.
Reasoning
On a perusal of the facts of the case, the Bench noted that the policy issued by the insurance company, named as ‘Bundled - Two Wheeler Policy ’, and ‘Section II – Liability to Third Parties’ have been incorporated in the said policy. Noting that the Third Party Liability Coverage is for a period of 5 years and the premium was also paid for that particular period, the Bench stated the insurance company was liable to pay the compensation as the accident had taken place within the Third Party Coverage period.
The Bench concluded the matter by observing that the insurance company could not escape its liability by contending that the Two-wheeler Bundled Policy did not cover the pillion rider.
Thus, finding no merit in the appeal, the Bench dismissed the same. “The direction given by the Tribunal that the appellant/ insurance company should pay and recover it from the tortfeasor is hereby set aside”, it ordered.
Cause Title: M/s. ICICI Lombard GIC Ltd v. S. Barkathulla (Case No.: C.M.A. No.1874 of 2026)