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Head Note

Motor Vehicles Act,1988  - Section 147 , Section 157

Death of pillion rider of scooter - Insurance company not liable - Deceased was a gratuitous passenger - As the insurance policy was a statutory policy, and hence it did not cover the risk of death of or bodily injury to gratuitous passenger.

Motor Vehicles Act,1988  - Section 157

Motor Vehicles Act, 1939 - Section 103-A - Transfer of ownership of the insured vehicle - No intimation of transfer sent to insurer - Liability of an insurer does not cease on transfer as far the liability towards a third party is concerned - It is not the transfer of the vehicle but the accident which furnishes the cause of action before the Tribunal.

Topic(s)-Liability of insurance company , Transfer of ownership

Important Decision(s)- Deceased was a gratuitous passenger - Insurance policy was a statutory policy, and hence it did not cover the risk of death of or bodily injury to gratuitous passenger.