Bombay High Court Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence of Deceased. Deceased motorcyclist without helmet and license contributed 50% to accident; insurer not liable for no-fault liability under Section 140 of Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
  • 13
Judgement Image
Font size:
Print

Case Note & Summary

The appeal arises from a judgment and award dated 20.08.2008 passed by the Motor Accident Claims Tribunal, Amravati, in Claim Petition No. 131/2006. The appellant, Oriental Insurance Co. Ltd., challenged the award on the ground that the Tribunal erred in holding that the deceased was not negligent and in awarding compensation under no-fault liability. The respondents (claimants) are the legal heirs of the deceased, Santoshkumar Parmanand Akhar (Kapur), who died in a motor vehicle accident on 24.12.2005. The deceased was riding a motorcycle (MH-30/K 9277) when he collided with a stationary truck (MH-27/AA 9277) parked on the road without any indicator or parking light. The Tribunal held the truck driver negligent and awarded compensation of Rs.3,42,500/- with interest at 6% per annum, including Rs.50,000/- under no-fault liability. The High Court found that the deceased was equally negligent as he was not wearing a helmet and did not possess a valid driving license, and the accident occurred at night. The Court held that the deceased contributed 50% to the accident. Consequently, the compensation was reduced to 50% of the computed amount (Rs.2,92,500/- after deducting 1/3rd for personal expenses and applying multiplier 13 on income of Rs.3,000 per month), i.e., Rs.1,46,250/-. The award under Section 140 (no-fault liability) was set aside. The insurer was directed to pay the reduced amount with interest at 6% per annum from the date of petition till realization, with liberty to recover from the owner and driver.

Headnote

A) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - Deceased motorcyclist, without helmet and valid license, collided with a stationary truck - Held that the deceased was equally negligent, contributing 50% to the accident - Tribunal's finding of no contributory negligence set aside - Compensation reduced proportionately (Paras 4-6).

B) Motor Accident Claims - No-Fault Liability - Section 140 Motor Vehicles Act, 1988 - Insurer's liability under no-fault provision - Held that where the deceased himself is negligent, the insurer is not liable to pay compensation under Section 140 - Award under Section 140 set aside (Para 7).

C) Motor Accident Claims - Quantum of Compensation - Assessment of Income and Multiplier - Deceased aged 45 years, earning Rs.3,000 per month as a driver - Tribunal applied multiplier of 13 and deducted 1/3rd for personal expenses - Held that the computation was correct, but due to contributory negligence, claimants entitled to 50% of the computed amount (Paras 5-6).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in awarding compensation without considering contributory negligence of the deceased motorcyclist who was not wearing a helmet and did not possess a valid driving license, and whether the insurer is liable to pay compensation under no-fault liability despite such negligence.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The appeal is partly allowed. The judgment and award dated 20.08.2008 is modified. The compensation is reduced to Rs.1,46,250/- (50% of Rs.2,92,500/-) with interest at 6% per annum from the date of petition till realization. The award under Section 140 (no-fault liability) is set aside. The appellant is directed to pay the amount within six weeks, with liberty to recover from the owner and driver.

Law Points

  • Contributory negligence
  • No-fault liability
  • Section 140 Motor Vehicles Act
  • 1988
  • Section 163A Motor Vehicles Act
  • Apportionment of liability
  • Negligence of deceased
  • Absence of driving license
  • Non-use of helmet
Subscribe to unlock Law Points Subscribe Now

Case Details

2021 LawText (BOM) (12) 129

First Appeal No.655 of 2010

2021-12-09

M. S. Sonak, J.

Shri. D. N. Kukday for Appellant, Ms. A. Sharma for Respondent Nos.2 to 5

The Divisional Manager, Oriental Insurance Co. Ltd., Amravati Divisional Office, through the Divisional Manager, Nagpur Divisional Office-II

Santoshkumar Parmanand Akhar (Kapur) and others (Claimants) and Akhatar Khan Babakhan (driver) and Aniskha s/o. Yunus-Kha (owner)

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

First Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation arising from a fatal motor vehicle accident.

Remedy Sought

The appellant (Insurance Company) sought setting aside of the award on the ground that the Tribunal erred in holding no contributory negligence and in awarding compensation under no-fault liability.

Filing Reason

The claimants filed Claim Petition No. 131/2006 seeking compensation for the death of Santoshkumar Parmanand Akhar (Kapur) in a motor vehicle accident on 24.12.2005.

Previous Decisions

The Motor Accident Claims Tribunal, Amravati, by judgment and award dated 20.08.2008, awarded Rs.3,42,500/- with interest at 6% per annum, including Rs.50,000/- under no-fault liability, holding the truck driver negligent and the insurer liable.

Issues

Whether the deceased motorcyclist was guilty of contributory negligence? Whether the insurer is liable to pay compensation under no-fault liability (Section 140) when the deceased himself was negligent? What is the correct quantum of compensation after apportionment of liability?

Submissions/Arguments

Appellant (Insurance Company): The deceased was not wearing a helmet and did not possess a valid driving license; the accident occurred at night; the deceased was equally negligent; the Tribunal erred in not considering contributory negligence; the award under Section 140 is not sustainable. Respondents (Claimants): The truck was parked without indicator or parking light; the truck driver was solely negligent; the deceased was not negligent; the award is just and proper.

Ratio Decidendi

In motor accident claims, if the deceased himself was negligent (contributory negligence), the compensation must be reduced proportionately. The insurer is not liable to pay compensation under no-fault liability (Section 140) when the deceased was negligent. The absence of a driving license and non-use of helmet are factors indicating negligence.

Judgment Excerpts

The deceased was not wearing a helmet and did not possess a valid driving license. The accident occurred at night. In these circumstances, the deceased must be held to have contributed to the accident to the extent of 50%. The Tribunal has awarded Rs.50,000/- under no-fault liability. Since the deceased himself was negligent, the insurer is not liable to pay compensation under Section 140 of the Motor Vehicles Act, 1988.

Procedural History

The claimants filed Claim Petition No. 131/2006 before the Motor Accident Claims Tribunal, Amravati, seeking compensation for the death of Santoshkumar Parmanand Akhar (Kapur) in a motor vehicle accident on 24.12.2005. The Tribunal passed judgment and award dated 20.08.2008 awarding Rs.3,42,500/- with interest. The Insurance Company (original respondent No.3) filed First Appeal No.655 of 2010 before the Bombay High Court, Nagpur Bench, challenging the award. The High Court heard the appeal and delivered judgment on 09.12.2021.

Acts & Sections

  • Motor Vehicles Act, 1988: 140, 163A, 166
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence of Deceased. Deceased motorcyclist without helmet and license contributed 50% to accident; insurer not liable for no-f...
Related Judgement
Supreme Court Supreme Court Allows Central Government's Appeal on Interest Calculation in Land Acquisition Execution Proceedings. Interest on Solatium Payable Only from Date of Sunder Judgment (19-09-2001) When Not Specifically Granted in Decree Under Land Acquisi...