Case Note & Summary
The case arises from a motor vehicular accident involving a Jeep driven by respondent no.1, owned by respondent no.2 (the insured), and insured with respondent no.3 (the insurer). The deceased, Kiran, was travelling in the Jeep and died due to the accident. The claimants, parents of the deceased, filed a claim petition before the Motor Accident Claims Tribunal, Akola. The tribunal held that the accident occurred due to rash and negligent driving of the Jeep driver. However, it also found that the deceased was contributorily negligent to the extent of 10% because he did not hold the rod/iron bar and secure himself while travelling. Since there was no evidence of the deceased's income, the tribunal assumed notional income at Rs.15,000/- per year, deducted 1/3rd for personal expenses, applied a multiplier of 16 considering the claimants' ages (60 and 55 years), and awarded total compensation of Rs.1,51,000/-. Regarding liability, the tribunal noted that the cheque issued by the insured towards premium was dishonoured, and the insurer cancelled the cover note. The accident occurred a few months after cancellation. The tribunal held that the primary liability was of the insured but directed the insurer to satisfy the award at the first instance and recover the amount from the insured. Two appeals were filed: First Appeal No.520/2004 by the insurer challenging the pay-and-recover direction, and First Appeal No.587/2004 by the insured challenging the findings on contributory negligence and the insurer's liability. The High Court dismissed both appeals, affirming the tribunal's findings on contributory negligence and the pay-and-recover direction, and finding no error in the computation of compensation.
Headnote
A) Motor Accident Claims - Contributory Negligence - Deceased not holding rod/iron bar while travelling in jeep - Tribunal held deceased negligent to extent of 10% - High Court affirmed finding as no perversity shown - Held that contributory negligence of 10% was justified (Paras 2, 4). B) Motor Accident Claims - Dishonoured Cheque - Insurance Policy Cancelled - Insurer's Liability - Tribunal directed insurer to pay award first and recover from insured - High Court upheld pay-and-recover direction as consistent with law - Held that insurer must satisfy award at first instance and recover from insured (Paras 2, 5). C) Motor Accident Claims - Notional Income - Deceased's income not proved - Tribunal assumed Rs.15,000/- per year - Deducted 1/3rd for personal expenses - Applied multiplier of 16 - Awarded Rs.1,51,000/- - High Court found no error in computation (Paras 2, 4).
Issue of Consideration
Whether the insurer is liable to pay compensation when the premium cheque was dishonoured and the policy was cancelled before the accident; whether the deceased was contributorily negligent for not holding the safety bar.
Final Decision
Both appeals dismissed. The judgment and award of the Motor Accident Claims Tribunal, Akola dated 02.06.2004 in M.A.C.P. No.268/1999 are confirmed. No order as to costs.
Law Points
- Motor Accident Claims
- Contributory Negligence
- Dishonoured Cheque
- Pay-and-Recover
- Notional Income
- Multiplier
