# Uttarakhand High Court rules owner as passenger eligible for insurance compensation 2026-09-16T02:52:04+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Uttarakhand High Court has held that a vehicle owner travelling as a passenger is entitled to compensation under a package policy that specifically covers passengers, overturning a tribunal's rejection of a claim. Justice Pankaj Purohit ruled in an appeal by the family of Laxman Singh, who died in a road accident while his Tata Spacio was driven by another person. The insurance company had argued that the owner is not a third party and thus not covered. The court noted that the policy was a 'Passengers Carrying Commercial Vehicle Policy B Package' with coverage for nine passengers, for which a separate premium was charged. The court distinguished a 2004 Supreme Court ruling, noting that the earlier case lacked specific passenger coverage. It cited the Supreme Court's decision in National Insurance Co. Ltd. v. Smt. Thungala Dhana Laxmi to support giving effect to the policy's terms. The tribunal had erred by treating ownership alone as grounds to dismiss the claim, the court said. It assessed total compensation at Rs 8,34,800 in the case Smt. Poonam Devi & Ors. v. The New India Assurance Company & Anr. ## Indian Opinion Analysis livelaw.in reports both rulings as straightforward legal interpretations without editorial slant. The Uttarakhand judgment clarifies that a package policy's express passenger coverage overrides the owner-as-third-party rule, reinforcing the primacy of policy terms over status. The Himachal Pradesh ruling, though on a different case, underscores the opposite: fundamental breaches like missing permits and fitness certificates nullify coverage. Together, they show that insurance liability hinges on strict compliance with policy conditions, not on the claimant's identity. Watch for similar arguments in other high courts where policy wording is contested. ## Coverage - livelaw.in - livelaw.in Tags: Dhanraj v. New India Assurance Co. Ltd., Motor Accident Claims Tribunal, New India Assurance Company, Uttarakhand High Court Canonical: https://indianopinion.org/owner-travelling-as-passenger-can-claim-under-package-policy-uttarakhand-high-court/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/owner-travelling-as-passenger-can-claim-under-package-policy-uttarakhand-high-court/#story-in-brief