In Brief
Two families claimed compensation after a 2001 motor accident in Assam killed two men who were gratuitous passengers in a Tata Sumo. The Motor Accident Claims Tribunal awarded Rs. 24,89,500 and Rs. 24,09,500 respectively, but made only the vehicle owner liable, exonerating the insurer. The High Court upheld this, citing the gratuitous passenger status. The Supreme Court allowed the appeals, holding that while insurers are not primarily liable for gratuitous passengers, they must still pay compensation and then recover from the insured, applying the benevolent purpose of the Motor Vehicles Act.
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