Pillion riders to get relief under motor insurance.

Pillions riders are always at a higher risk than the drivers due to various reasons- not being covered under the motor insurance was one of them.

Giving clarity over the liability of insurance companies with regard to the pillion riders, a Division Bench of the Kerala High Court has held that insurance companies are liable to pay compensation to pillion riders under the standard package vehicle insurance policy in accident claim cases. The bench ordered that if it was a package policy, coverage should be provided by the insurance company in respect of the pillion rider as well without any doubts.

The court quoted a 2009 circular of the Insurance Regulatory and Development Authority (IRDA) which had ordered that insurer’s liability under the standard motor package policy (comprehensive policy) for private car and two-wheeler very much included coverage to a pillion rider on two-wheelers and occupants in a private car as well, as long as they were carried in the vehicle not for hire or reward.

This ruling was giving against National Insurance while allowing a writ petition filed by Francis K.T. of Aluva, Kerala, a pillion rider, against an order of a motor accident claims tribunal, Perumbavoor, exonerating the insurance company from the liability of paying compensation to him. The National Insurance Company’s stand was that there was no liability for the company to satisfy the claim as no additional premium was collected with respect to the pillion rider.

This ruling of the Kerala High court comes as a huge relief to thousands of individuals riding pillion on two wheelers. The insurer may choose to challenge this ruling in Supereme Court.