Case Note & Summary
This appeal arises from a judgment and award of the Motor Accident Claims Tribunal in MACP No. 559 of 2007. The appellant, Smt. Kamal wd/o Daulatrao Deshmukh, was the original respondent No. 1 (owner of the vehicle) in the claim petition filed by the respondents (claimants) for compensation for the death of Dnyandeo Bhujbal in a motor vehicle accident. The deceased was riding a motorcycle owned by the appellant when it collided with a truck. The Tribunal held that the accident occurred due to the negligence of the truck driver, but also found contributory negligence on the part of the deceased as he was driving without a valid license. The Tribunal awarded compensation of Rs. 4,50,000 with interest at 7.5% per annum, directing the insurer (respondent No. 4) to pay the amount but granting it the right to recover from the owner. The appellant challenged the award, primarily contending that the insurer should not be liable to pay compensation as the deceased was driving without a license. The High Court examined the evidence and found that the deceased was indeed driving without a valid license and contributed to the accident. However, following the principle of 'pay and recover' under Section 149 of the Motor Vehicles Act, 1988, the Court held that the insurer is liable to pay compensation to third parties but can recover the amount from the owner. On quantum, the Court reassessed the compensation: the deceased was 63 years old, earning Rs. 3,000 per month as a watchman, and the multiplier of 9 was appropriate. After deducting 1/3rd for personal expenses, the loss of dependency was calculated at Rs. 2,16,000. Adding Rs. 40,000 for loss of consortium, Rs. 15,000 for loss of estate, and Rs. 5,000 for funeral expenses, the total compensation was reduced to Rs. 2,76,000. The Court modified the award accordingly, directing the insurer to pay the reduced amount with interest at 7.5% per annum from the date of the petition, with liberty to recover from the owner.
Headnote
A) Motor Accident Claims - Contributory Negligence - Deceased driving motorcycle without valid license - Tribunal held insurer liable to pay compensation but granted recovery rights - Held that the insurer is liable to pay compensation to third parties but can recover from the owner as per Section 149(4) of the Motor Vehicles Act, 1988 (Paras 10-15). B) Motor Accident Claims - Quantum of Compensation - Deceased aged 63 years, income assessed at Rs. 3,000 per month - Multiplier of 9 applied - Deduction of 1/3rd for personal expenses - Loss of dependency calculated at Rs. 2,16,000 - Additional amounts for loss of consortium, loss of estate, and funeral expenses - Total compensation reduced from Rs. 4,50,000 to Rs. 2,76,000 - Held that the Tribunal's assessment of income and multiplier was correct but the award was excessive (Paras 16-22).
Issue of Consideration
Whether the Tribunal was justified in holding the insurer liable to pay compensation despite the deceased driving without a valid driving license and whether the insurer is entitled to recover the amount from the owner of the vehicle.
Final Decision
The appeal is partly allowed. The impugned award is modified. The compensation is reduced from Rs. 4,50,000 to Rs. 2,76,000. The insurer (respondent No. 4) is directed to pay the compensation amount with interest at 7.5% per annum from the date of the petition till realization, and is entitled to recover the same from the appellant (owner) in accordance with law.
Law Points
- Motor Accident Claims
- Contributory Negligence
- Driving Without License
- Pay and Recover
- Section 149 Motor Vehicles Act
- 1988
