The Supreme Court has ruled that insurance companies will not be liable to pay compensation to those travelling in goods vehicles with their goods if they meet with an accident.
The court reversed its earlier judgment while allowing appeals by insurance companies.
According to the judgment delivered by a Bench headed by Chief Justice G B Pattanaik, the amendment to the Motor Vehicles Act, 1994, has changed the situation.
However, the court's interpretation of Section 147 of the Act was wrong and now stood corrected.
The issue was whether persons who are carried in goods vehicles along with goods were covered by insurance.
The earlier interpretation was that they were also covered by insurance, and the companies have to compensate the amount decreed by the accident claims tribunals.
In the present batch of appeals, led by New India Assurance Company, it has been categorically stated that "the insurer will not be liable for paying compensation to the owner of goods or his authorised representative on being carried in a goods vehicle when that vehicle meets with an accident and the owner of the goods or his representative dies or suffers any bodily injury."
