High Court of Bombay at Nagpur Dismisses Insurance Company's Appeal in Motor Accident Claim — Upholds Compensation of Rs.24,52,968/- for Death of Motorcyclist Due to Negligent Driving of Trailer Truck. The Court held that the insurer failed to prove breach of policy conditions and that the claimants are entitled to compensation with interest at 6% per annum.

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

The appeal was filed by New India Assurance Co. Ltd. against the judgment of the Motor Accident Claims Tribunal, Kelapur, District Yavatmal, which awarded compensation of Rs.24,52,968/- with interest at 6% per annum to the claimants (respondent nos.1 to 3), who are the legal representatives of the deceased. The accident occurred on 13.5.2008 at about 5.30 p.m. at Khandala Fata on Shirpur-Korpana road. The deceased was riding his motorbike No.MH-29J/1961 from Chargaon chowki to Velabai (Mohada). When he reached near Khandala Fata, the offending trailer truck No.MH-20/AT-6597, driven by respondent no.4 rashly and negligently, dashed against the motorbike. The deceased sustained fatal injuries and died on the spot. An offence was registered against the driver by Police Station, Shirpur. The truck was owned by respondent no.5. The claimants filed a claim petition before the Tribunal. The appellant-insurer appeared and filed a written statement contesting the claim. The Tribunal granted compensation of Rs.24,52,968/- along with interest at 6% per annum from the date of petition. The insurer appealed, but the High Court found no merit in the appeal and dismissed it, upholding the Tribunal's award.

Headnote

A) Motor Accident Claims - Negligence - Fatal Accident - The deceased died due to rash and negligent driving of trailer truck by respondent no.4 - The Tribunal held the driver and owner liable - The insurer appealed but failed to prove any breach of policy conditions - Held that the compensation awarded is just and proper (Paras 1-3).

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in granting compensation of Rs.24,52,968/- with interest at 6% per annum to the claimants, and whether the appellant-insurer is liable to pay the same.

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Final Decision

The appeal is dismissed. The judgment and award of the Motor Accident Claims Tribunal, Kelapur, District Yavatmal is confirmed. No order as to costs.

Law Points

  • Motor Accident Claims
  • Negligence
  • Compensation
  • Breach of Policy Conditions
  • Interest Rate
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Case Details

2020 LawText (BOM) (02) 158

First Appeal No.1121 of 2018

2020-02-12

M.G.Giratkar

Mr.B.P.Bhatt for the Appellant, Mr.Vivek Awchat for Respondent Nos.1 to 3

New India Assurance Co. Ltd.

Sau.Rukhmabai wd/o. Shrihari Thakre, Arvind s/o. Shrihari Thakre, Pravin s/o. Shrihari Thakre, Dnyaneswar s/o. Sheshrao Chelekar, Mrs.Harpreetkaur w/o.Vikramjeet Singh Sandhu

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Nature of Litigation

Appeal against judgment of Motor Accident Claims Tribunal awarding compensation for death in a motor vehicle accident.

Remedy Sought

The appellant-insurer sought to set aside the award of compensation of Rs.24,52,968/- with interest.

Filing Reason

The appellant-insurer challenged the Tribunal's award on grounds of negligence and quantum.

Previous Decisions

The Motor Accident Claims Tribunal, Kelapur, District Yavatmal granted compensation of Rs.24,52,968/- along with interest @ 6% per annum from the date of petition.

Issues

Whether the Tribunal erred in awarding compensation of Rs.24,52,968/- with interest at 6% per annum?

Submissions/Arguments

The appellant-insurer argued that the Tribunal's award was excessive and that there was breach of policy conditions. The respondents-claimants supported the Tribunal's award.

Ratio Decidendi

The insurer failed to prove any breach of policy conditions. The compensation awarded by the Tribunal is just and proper and does not warrant interference.

Judgment Excerpts

This appeal is against the Judgment of Motor Accident Claims Tribunal, Kelapur, District Yavatmal. The facts giving rise to the present appeal can be summarised as under... The said truck was owned by respondent no.5 herein.

Procedural History

The claimants filed a claim petition before the Motor Accident Claims Tribunal, Kelapur, District Yavatmal. The Tribunal granted compensation of Rs.24,52,968/- with interest at 6% per annum. The insurer appealed to the High Court of Bombay at Nagpur.

Acts & Sections

  • Motor Vehicles Act, 1988:
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