Insurer liability for tractor passengers remains statutory, with recovery rights preserved despite policy breach and concurrent findings upheld.

Insurer liability under Chapter XI of the Motor Vehicles Act was treated as statutory, with defences limited to Section 149(2). The Court reaffirmed that third-party risk remains the normal basis of liability, and that even where a vehicle is used in breach of policy conditions, the insurer may be directed to satisfy the award and then recover the amount from the owner if the recognised categories are met. The deceased was found to be a labourer connected with the goods being transported, and the Court saw no reason to disturb the concurrent findings. The compensation award was maintained and the insurer's recovery rights were preserved.

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Issues: Whether the insurer was liable to satisfy the compensation award in respect of a person travelling on a tractor and whether the Supreme Court should interfere with the concurrent findings of the Tribunal and the High Court.

Analysis: Liability under Chapter XI of the Motor Vehicles Act, 1988 is statutory and the insurer's defences are confined to the grounds available under Section 149(2). The Court reiterated that the insurer's liability ordinarily arises in respect of third party risk and that, where the vehicle is used in breach of policy conditions, the insurer may still be directed to satisfy the award and recover the amount from the owner if the case falls within the recognised categories. The deceased was found to be a labourer and also connected with the goods being transported, and the Court relied on earlier decisions explaining the limits of the insurer's statutory liability and the restricted scope for interference under Article 136 of the Constitution of India.

Conclusion: The appeal was not a fit case for interference, the award in favour of the claimants was maintained, and the insurer's recovery rights against the owner were preserved.

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