Pillion rider has not been a third party
The Supreme Court (SC) has been consistently saying that a pillion rider on a motorcycle is not a third party, in United India Insurance Co. Ltd., Shimla v Tilak Singh & Others [2006 (4) SCC 404], Oriental Insurance Co Ltd v Sudhakaran K V & Others [ 2008 (7) SCC 428], etc.
Because of that the Insurance Company has not been liable to indemnify the insured on account of the injuries or death of such pillion rider. Therefore, the insured has to pay extra premium to ensure insurance to the pillion rider.
SC Bench finds prima facie disagreement on it
However a two-member Bench of the Supreme Court (SC) in S. Mohana Krishnan v K. Balasubramaniyam & Others [2024 ACJ 1169], observed that they have prima facie reservation about the view expressed by the above said earlier benches.
As such question is required to be determined authoritatively, the Bench referred the matter to a larger bench of the SC.
Larger Bench will decide the issue.
The question referred to the larger bench is whether the third party includes all other persons other than the insured, who is the first party and the insurer, who is the second party.
Therefore, all other persons who are neither the insured nor the insurer will be third party and will be covered by the Act Only policy.
CJI will have to constitute the larger bench
Therefore, the Chief Justice of India (CJI) will have to constitute a larger bench to consider the question of law, as mentioned above, by an appropriate Bench.
References
- United India Insurance Co. Ltd., Shimla v Tilak Singh & Others [2006 (4) SCC 404]
- Oriental Insurance Co Ltd v Sudhakaran K V & Others [ 2008 (7) SCC 428]
- Mohana Krishnan v K. Balasubramaniyam & Others [2024 ACJ 1169]
