Deceased employed by insured / bus owner but not driving offending vehicle at time of accident, shall be a 'third party' under insurance policy and insurer is liable to compensate his dependents

In this case the deceased was employed by an insured-bus owner as one of its drivers. He was not assigned to the offending bus as its driver at time of accident. Deceased had reached the bus depot for his duty and while he was standing on the side, he was hit by the offending bus, being driven by its driver in a rash and negligent manner, causing his death.

Though deceased was an employee of the insured, but as such he was not connected with the subject bus and was merely standing on the side. In such a situation, death of the deceased cannot be said to be arising out of or in the course of his employment.

Merely because the deceased was also an employee of the insured would not bring the deceased within the exception, exonerating the insurer from its liability to compensate claimants. Deceased would satisfy the definition of a 'third party' covered under the motor insurance policy. Insurance companies cannot be exonerated from its liability to compensate dependants of the deceased.

Appearing Counsel : Mr. Ravi Sabharwal