Case Note & Summary
The New India Assurance Co. Ltd. appealed against an order dated 5.5.2009 passed by the Motor Accident Claims Tribunal, Chandrapur in MACP No. 75 of 2007, granting interim compensation of Rs. 50,000 to respondent no. 1 (Daulat Rambhau Sidam) under no fault liability. The appellant insurance company contended that the deceased was a gratuitous and unauthorized passenger travelling in a goods vehicle, and therefore the appellant was not liable to cover any risk, much less by way of interim compensation. The court examined the principles governing proceedings under Section 166 and Section 140 of the Motor Vehicles Act, 1988. It observed that Section 140 has a social and beneficial object to provide urgent relief to victims of motor vehicle accidents in cases of death or permanent disablement. The court held that the principles applicable under Section 140 are different from those under Section 166; at the stage of interim compensation under Section 140, defences such as the deceased being a gratuitous passenger are not relevant. The court dismissed the appeal, upholding the order of the Tribunal granting interim compensation.
Headnote
A) Motor Accident Claims - No Fault Liability - Interim Compensation - Section 140 Motor Vehicles Act, 1988 - Social Welfare Legislation - The court considered whether an insurance company can avoid interim compensation under Section 140 on the ground that the deceased was a gratuitous passenger in a goods vehicle. Held that the principles under Section 140 are different from those under Section 166; Section 140 is a social welfare provision intended to provide urgent relief, and defences regarding the nature of the passenger are not relevant at the interim stage. (Paras 3-4)
Issue of Consideration
Whether the Insurance Company is liable to pay interim compensation under Section 140 of the Motor Vehicles Act, 1988 for the death of a gratuitous passenger in a goods vehicle.
Final Decision
Appeal dismissed. Order dated 5.5.2009 passed by the Motor Accident Claims Tribunal, Chandrapur granting interim compensation of Rs. 50,000 to respondent no. 1 is upheld.
Law Points
- No fault liability
- interim compensation
- gratuitous passenger
- goods vehicle
- social welfare legislation
- Motor Vehicles Act
- Section 140
- Section 166
Case Details
2010 LawText (BOM) (06) 136
First Appeal No. 144 of 2010
Mr S.M. Uike for appellant
The New India Assurance Co. Ltd.
Daulat Rambhau Sidam and Sachin Ganpat Chandankhede
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Nature of Litigation
Appeal against order granting interim compensation under no fault liability in a motor accident claim.
Remedy Sought
Insurance company sought to set aside the order granting interim compensation of Rs. 50,000 to the claimant.
Filing Reason
Insurance company contended that the deceased was a gratuitous passenger in a goods vehicle and thus not covered by insurance.
Previous Decisions
Motor Accident Claims Tribunal, Chandrapur in MACP No. 75 of 2007 granted interim compensation of Rs. 50,000 to respondent no. 1.
Issues
Whether the Insurance Company is liable to pay interim compensation under Section 140 of the Motor Vehicles Act, 1988 for the death of a gratuitous passenger in a goods vehicle.
Submissions/Arguments
Appellant Insurance Company argued that the deceased was a gratuitous and unauthorized passenger in a goods vehicle, hence no liability to pay interim compensation.
Respondent claimant sought interim compensation under no fault liability.
Ratio Decidendi
The principles governing proceedings under Section 140 of the Motor Vehicles Act are different from those under Section 166. Section 140 has a social and beneficial object to provide urgent relief to victims of motor vehicle accidents. At the stage of interim compensation under Section 140, defences such as the deceased being a gratuitous passenger are not relevant.
Judgment Excerpts
The principles governing proceedings under Section 166 of the Motor Vehicles Act are different than applicable in the proceedings under Section 140 of the Act towards no fault liability.
It has social and beneficial object to provide urgent relief of compensation to victims of motor vehicle accident in cases of death or permanent disablement.
Procedural History
The Motor Accident Claims Tribunal, Chandrapur in MACP No. 75 of 2007 granted interim compensation of Rs. 50,000 to respondent no. 1 on 5.5.2009. The Insurance Company appealed against that order in the Bombay High Court, Nagpur Bench, which dismissed the appeal on 21.6.2010.
Acts & Sections
- Motor Vehicles Act, 1988: 140, 166
