Case Note & Summary
The appeal arises from a judgment and award dated 18/10/2013 passed by the Claims Tribunal, Nagpur in M.A.C.P No.686/2008. The appellants, being the widow and minor children of deceased Anantrao Zade, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation for his death in a motor vehicular accident on 29/06/2008. The deceased was riding a motorcycle when a trax vehicle dashed against him, causing fatal injuries. The claimants alleged rash and negligent driving by the trax driver. The Insurance Company contested on grounds of contributory negligence and breach of policy conditions due to lack of valid driving licence. The Tribunal awarded Rs.12,43,000/- with interest. The claimants appealed for enhancement. The High Court held that the finding of negligence was correct and no contributory negligence was proved. On quantum, the Court applied a multiplier of 16, added 40% towards future prospects to the deceased's salary of Rs.12,432 per month, deducted 1/3rd for personal expenses, and calculated loss of dependency at Rs.16,72,704/-. Adding Rs.70,000/- under conventional heads, the total compensation was enhanced to Rs.17,42,704/-. The Insurance Company was held liable to pay the amount with interest at 7.5% per annum from the date of petition, with liberty to recover from the insured if breach of policy conditions is established.
Headnote
A) Motor Accident Claims - Negligence - Death in vehicular accident - Claimants alleged rash and negligent driving by driver of offending trax vehicle - Tribunal held driver of trax negligent - No contributory negligence by deceased - Held that finding of negligence is based on evidence and not interfered with (Paras 2-4). B) Motor Accident Claims - Quantum of Compensation - Computation of loss of dependency - Deceased aged 35 years, earning Rs.12,432 per month - Tribunal applied multiplier of 16 and deducted 1/3rd for personal expenses - Held that addition of 40% towards future prospects is warranted as per settled law, and multiplier of 16 is correct (Paras 5-7). C) Motor Accident Claims - Liability of Insurance Company - Breach of policy conditions - Driver not possessing valid driving licence - Insurance Company failed to prove breach - Held that Insurance Company is liable to pay compensation and may recover from insured if breach is established (Para 8).
Issue of Consideration
Whether the compensation awarded by the Claims Tribunal was just and proper, and whether the Insurance Company was liable to indemnify the insured despite alleged breach of policy conditions.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The claimants are entitled to total compensation of Rs.17,42,704/- with interest at 7.5% per annum from the date of petition till realization. The Insurance Company is directed to deposit the enhanced amount within eight weeks. The Insurance Company is at liberty to recover the amount from the insured if breach of policy conditions is established.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Compensation for death
- Negligence
- Contributory negligence
- Quantum of compensation
- Multiplier
- Future prospects
- Deduction for personal expenses
