Case Note & Summary
The appellant, The New India Assurance Company Limited, challenged the judgment and award dated 30.12.2008 passed by the Chairman, Motor Accident Claims Tribunal, Amravati, whereby respondents no. 1 to 3 were held jointly and severally liable to pay Rs. 4,75,000/- as compensation inclusive of no fault liability under Section 140 of the Motor Vehicles Act with interest at 7.50% per annum from the date of petition till payment. The facts briefly are that deceased Vijaya, aged about 46 years, wife of claimant no. 1 and mother of claimant no. 2, while travelling on 1.6.2002 by an auto rickshaw no. MH27-C-3602 along with other passengers towards Nandgaon Khandeshwar, met with an accident when the auto rickshaw overturned due to rash and negligent driving. The claimants filed a petition for compensation. The Tribunal held that the accident occurred due to rash and negligent driving of the auto rickshaw driver and awarded compensation of Rs. 4,75,000/-. The insurance company appealed contending that the deceased was also negligent as she boarded an overcrowded vehicle and that the compensation was excessive. The court considered the issue of contributory negligence and found that the deceased, by boarding an overcrowded auto rickshaw, contributed to the accident. The court apportioned liability equally between the driver and the deceased, reducing the compensation by 50%. The court also upheld the multiplier of 13 applied by the Tribunal as per the Second Schedule. The court directed that the insurance company shall pay 50% of the awarded amount with interest and costs, and the claimants shall bear the remaining 50% due to contributory negligence. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - Deceased passenger travelling in auto-rickshaw which overturned due to rash driving - Held that the deceased, by boarding an overcrowded vehicle, contributed to the accident - Liability apportioned equally between driver and deceased - Compensation reduced by 50% (Paras 5-7). B) Motor Accident Claims - Quantum of Compensation - Multiplier - Deceased aged 46 years, housewife - Tribunal applied multiplier of 13 - Held that multiplier of 13 is correct as per Second Schedule to Motor Vehicles Act, 1988 - No interference (Para 8). C) Motor Accident Claims - No Fault Liability - Section 140 Motor Vehicles Act, 1988 - Tribunal awarded Rs. 50,000 under no fault liability - Held that this amount is already included in total compensation and need not be separately deducted (Para 9).
Issue of Consideration
Whether the Tribunal erred in not considering contributory negligence of the deceased and in awarding excessive compensation?
Final Decision
Appeal partly allowed. The impugned award is modified. The insurance company shall pay 50% of the awarded amount of Rs. 4,75,000/- with interest at 7.50% per annum from the date of petition till payment. The claimants shall bear the remaining 50% due to contributory negligence. No order as to costs.
Law Points
- Contributory negligence
- Motor accident compensation
- No fault liability
- Section 140 Motor Vehicles Act
- 1988
- Apportionment of liability
