Case Note & Summary
The case arises from a motor accident claim where the deceased, Govind Prabhu Patil, was riding a Scooty Pep on 15th November 2012 when a luxury bus (offending vehicle) dashed into him, causing fatal injuries. The claimants, wife and sons of the deceased, filed a claim petition before the Motor Accident Claims Tribunal, Nashik, which awarded compensation of Rs.31,29,856/- with 7% interest, holding the insurance company (ICICI Lombard) and the owner of the bus jointly and severally liable. The insurance company appealed under Section 173 of the Motor Vehicles Act, 1988, challenging the award primarily on the ground that the offending vehicle was a luxury bus and the deceased was a gratuitous passenger, thus the insurer was not liable. The High Court examined the facts and found that the deceased was a third party (scooterist) and not a passenger in the bus. The court noted that the insurance company failed to produce any evidence to prove breach of policy conditions, such as the bus being used for hire or reward without a permit. The court also observed that the Tribunal had correctly assessed the compensation based on the income of the deceased and the multiplier. The appeal was dismissed, and the award of the Tribunal was upheld. The court directed the insurance company to deposit the awarded amount with interest within four weeks, with liberty to the claimants to withdraw the same.
Headnote
A) Motor Accident Claims - Compensation - Third Party - Section 173 Motor Vehicles Act, 1988 - Appeal against award of compensation - Deceased was a third party (scooterist) hit by a luxury bus - Insurance company challenged award on ground of breach of policy conditions - Held that insurer failed to prove breach, and deceased being third party, insurer is liable to pay compensation (Paras 1-18).
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when the offending vehicle was a luxury bus and the deceased was a third party, and whether the insurer can avoid liability on grounds of breach of policy conditions.
Final Decision
Appeal dismissed. The judgment and award of the Motor Accident Claims Tribunal, Nashik dated 30th April, 2019 is upheld. The appellant is directed to deposit the entire awarded amount with accrued interest within four weeks from today. On such deposit, the claimants are at liberty to withdraw the same.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Compensation
- Third Party
- Breach of Policy Conditions
- Burden of Proof
