Bombay High Court Upholds Insurance Company's Liability in Motor Accident Claim — Composite Negligence Established. National Insurance Company held liable to pay compensation as insurer of the Tempo Trax, despite the accident being caused by a bus, due to composite negligence of both drivers.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The appellant, National Insurance Company Limited, challenged the judgment and award dated 6.12.2006 passed by the Motor Accident Claims Tribunal at Gadchiroli in Motor Accident Claims Petition No.136/2000, whereby the tribunal directed the appellant to pay compensation of Rs.2,21,250/- to the claimants, who are the legal representatives of the deceased Bhaskar Naktode. The accident occurred on 6.6.2002 when the deceased was travelling in a Tempo Trax bearing No.MH-33/384 owned by respondent No.9 and insured with the appellant. At Kitali Shivar on Armori-Gadchiroli Road, a Luxury Bus No.MH-33/1012 driven by its driver dashed against the Tempo Trax, causing the death of the deceased. An offence was registered against the driver of the Luxury Bus vide Crime No.21/2000. The claimants filed a claim petition before the tribunal, which after considering the evidence, held that the accident was caused due to the negligence of the driver of the Luxury Bus. However, the tribunal directed the appellant, as the insurer of the Tempo Trax, to pay compensation to the claimants, with liberty to recover the same from the owner and insurer of the Luxury Bus. The appellant contended that since the accident was solely caused by the bus driver, the insurer of the Tempo Trax is not liable. The court examined the evidence, including the First Information Report and the deposition of the claimant, and found that the accident was due to composite negligence of both drivers. The court held that the claimants are entitled to compensation from the insurer of the Tempo Trax as the deceased was a passenger in that vehicle. The court upheld the tribunal's award and dismissed the appeal, directing the appellant to pay the awarded amount with interest at 6% per annum from the date of petition till realization.

Headnote

A) Motor Accident Claims - Composite Negligence - Liability of Insurer - Motor Vehicles Act, 1988, Sections 166, 168 - The court considered whether the insurer of the Tempo Trax is liable when the accident was caused by the bus driver. The court held that the claimants are entitled to compensation from the insurer of the Tempo Trax as the deceased was a passenger in the Tempo Trax and the accident was due to composite negligence of both drivers. The court upheld the tribunal's award directing the appellant to pay compensation of Rs.2,21,250/- with interest at 6% per annum from the date of petition till realization. (Paras 1-10)

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Issue of Consideration

Whether the appellant/National Insurance Company Limited is liable to pay compensation to the claimants when the accident was caused by the driver of the Luxury Bus and not by the driver of the insured Tempo Trax.

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Final Decision

The appeal is dismissed. The judgment and award dated 6.12.2006 passed by the learned Member of the Motor Accident Claims Tribunal at Gadchiroli in Motor Accident Claims Petition No.136/2000 is confirmed. The appellant is directed to pay the awarded amount of Rs.2,21,250/- with interest at 6% per annum from the date of petition till realization.

Law Points

  • Composite negligence
  • Motor Accident Claims
  • Liability of insurer
  • Negligence
  • Contributory negligence
  • Res ipsa loquitur
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Case Details

2023 LawText (BOM) (06) 171

First Appeal No.1569 of 2008

2023-06-05

Urmila Joshi-Phalke

Shri C.A.Anthony for Appellant, Shri Vivek Thote for Respondent Nos.1 to 5, Shri M.M.Kalar for Respondent No.8

The Divisional Manager, National Insurance Co.Ltd., Chandrapur, through its Regional Manager, National Insurance Co.Ltd., Regional Office, Dharampeth, Nagpur.

1. Smt.Hemlata wd/o Bhaskar Naktode, 2. Ku.Namrata d/o Bhaskar Naktode, 3. Vijay s/o Bhaskar Naktode, 4. Amol s/o Bhaskar Naktode, 5. Sachin s/o Bhaskar Naktode, 6. Mahmood s/o Bhurakhan Pathan, 7. Ashok s/o Shankarrao Mallewar, 8. United India Insurance Co.Ltd., Gadchiroli, through its Divisional Manager, Chandrapur, 9. Basant Kumar Falatmal Nagdeve.

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Nature of Litigation

First appeal against judgment and award of Motor Accident Claims Tribunal directing payment of compensation.

Remedy Sought

Appellant sought to set aside the award and exonerate itself from liability to pay compensation.

Filing Reason

Appellant challenged the tribunal's direction to pay compensation on the ground that the accident was caused solely by the driver of the Luxury Bus, not the insured Tempo Trax.

Previous Decisions

The Motor Accident Claims Tribunal at Gadchiroli in Motor Accident Claims Petition No.136/2000 directed the appellant to pay compensation of Rs.2,21,250/- to the claimants.

Issues

Whether the appellant/National Insurance Company Limited is liable to pay compensation when the accident was caused by the driver of the Luxury Bus and not by the driver of the insured Tempo Trax.

Submissions/Arguments

Appellant argued that the accident was solely caused by the driver of the Luxury Bus, and therefore the insurer of the Tempo Trax is not liable. Claimants argued that the deceased was a passenger in the Tempo Trax and the accident was due to composite negligence of both drivers, making the insurer of the Tempo Trax liable.

Ratio Decidendi

In a case of composite negligence, the claimants are entitled to recover compensation from any of the joint tortfeasors. The insurer of the vehicle in which the deceased was travelling is liable to pay compensation, even if the accident was caused by another vehicle, as the deceased was a passenger in the insured vehicle and the accident was due to the negligence of both drivers.

Judgment Excerpts

The appellant/National Insurance Company Limited challenges judgment and award dated 6.12.2006 passed by learned Member of the Motor Accident Claims Tribunal at Gadchiroli... whereby the appellant/National Insurance Company Limited was directed to pay compensation of Rs.2,21,250/- to the claimants. The alleged accident took place on 6.6.2002 when Bhaskar (the deceased) was travelling from Gadchiroli to Wadsa in Tempo Trax bearing No.MH-33/384 owned by respondent No.9 and insured with the appellant. In the said accident, the deceased died. Regarding the said accident, an offence was registered against the driver of the Luxury Bus vide Crime No.21/2000.

Procedural History

The Motor Accident Claims Tribunal at Gadchiroli passed judgment and award dated 6.12.2006 in Motor Accident Claims Petition No.136/2000 directing the appellant to pay compensation. The appellant filed First Appeal No.1569 of 2008 before the Bombay High Court, Nagpur Bench, challenging the award. The appeal was closed on 09/03/2023 and pronounced on 05/06/2023.

Acts & Sections

  • Motor Vehicles Act, 1988: Sections 166, 168
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