MV Act Mandates Driver Insurance Under Section 147 | HC

Case Details: United India Insurance Co. Ltd vs. Fulma Devi - [2025] 181 taxmann.com 451 (HC - Himachal Pradesh)

Judiciary and Counsel Details

• Satyen Vaidya, J.
• Ashwani K. Sharma, Sr. Adv.& Ishan Sharma, Adv. for the Appellant.
• Ms. Monika Singh & Virender Sharma, Advs. for the Respondent.

Facts of the Case

In the instant case, the Respondents’ claimants filed a claim petition for the grant of compensation on account of the death of their son during the course of his employment as a driver with the employer. The claim petition was partly allowed, and the claimants were held entitled to compensation of Rs. 12.57 lakhs, inclusive of interest.

The liability to satisfy the award had been fastened upon the appellant/insurer. Before the High Court, the appellant/insurer contended that the driver of the vehicle was not covered under the policy of insurance purchased by the employer.

It was noted that by virtue of proviso (i) to clause (b) of sub-section (1) of section 147 of the Motor Vehicles Act, the driver of the vehicle is entitled to coverage under the policy of insurance to the extent of compensation as provided under the Employees’ Compensation Act.

High Court Held

The High Court observed that since it had not been found that the driver was not qualified to drive the vehicle in question, he would also be covered under clause (II) (3) of the terms and conditions of the policy.

The High Court further observed that the employer, in her reply, had categorically admitted that she was the employer of the deceased driver, as the driver of the vehicle; thus, the contention that the relationship of employer and employee was not established also deserved rejection. Therefore, no fault could be found with the findings of fact recorded by the Commissioner.
The High Court held that since the age of the deceased at the time of death was 29 years and not 30 years, and by applying the relevant factor of 209.92, the award was modified, and the claimants were entitled to compensation of Rs. 8.39 lakhs along with interest at a rate of 12 per cent.

List of Cases Referred to

• National Insurance Company Ltd. v. Prembai Patel [2005] 6 SCC 172 (para 12).