The Delhi high court today said an insurance company cannot refuse the claim of compensation in case of death or injury of a pillion rider in a road accident.

Justice JR Midha said that comprehensive insurance policy of a vehicle not only covers the driver of a vehicle but also its other occupants who are hurt or who die in a road accident.

"It is clear that the comprehensive / package policy of a two-wheeler covers a pillion rider and the comprehensive / package policy of a car covers the occupants," the court said.

The court set aside the order of a Motor Accident Claim Tribunal saying there is no question of going into the fact, whether the insurance company is liable to compensate for the death or the injury of a pillion rider of a two-wheeler or the occupants of a private car.

"In view of directives of the TAC (Tariff Advisory Committee) and those of the IRDA (Insurance Regulatory and Development Authority), such a plea (relating to pillion rider and occupants of the car) was not permissible and ought not to have been raised," it said.