High Court of Bombay at Aurangabad Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence of Deceased. The Court held that the deceased, a pillion rider on a motorcycle driven by a minor without a license, contributed to the accident by not wearing a helmet, reducing the insurer's liability to 50%.

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

The case arises from a motor accident claim petition filed by the legal representatives of a deceased pillion rider. The deceased was riding pillion on a motorcycle driven by a minor without a valid driving license. The accident occurred due to the negligence of the driver. The Motor Accident Claims Tribunal awarded compensation of Rs. 7,50,000 with interest. The insurance company appealed, contending that the deceased was guilty of contributory negligence for not wearing a helmet and for riding with an unlicensed minor driver. The High Court analyzed the evidence and found that the deceased, being an adult, should have been aware of the risks. By not wearing a helmet and riding with a minor without a license, he contributed to the accident. The court held that the deceased was 50% contributory negligent. Regarding quantum, the Tribunal assessed the deceased's income at Rs. 4,500 per month based on minimum wages for a skilled worker, which was upheld. The multiplier was reduced from 18 to 16 considering the deceased's age of 25 years. Future prospects at 40% were allowed as per the Supreme Court's decision in Pranay Sethi. After deducting 1/3rd for personal expenses, the total compensation was recalculated. The court modified the award, reducing the insurance company's liability to 50% of the original amount, i.e., Rs. 3,75,000 with interest. The appeal was partly allowed.

Headnote

A) Motor Accident Compensation - Contributory Negligence - Pillion Rider's Duty - The deceased, a pillion rider on a motorcycle driven by a minor without a license, was held to have contributed to the accident by not wearing a helmet and by riding with an unlicensed minor driver. The court reduced the compensation by 50% on account of contributory negligence. (Paras 10-15)

B) Motor Accident Compensation - Quantum of Compensation - Assessment of Income - The Tribunal assessed the deceased's income at Rs. 4,500 per month based on the minimum wage for a skilled worker, which was upheld by the High Court. However, the multiplier was reduced from 18 to 16 due to the deceased's age of 25 years. (Paras 16-20)

C) Motor Accident Compensation - Deductions - Personal Expenses - The Tribunal deducted 1/3rd towards personal expenses, which was upheld. The court also allowed future prospects at 40% as per Pranay Sethi guidelines. (Paras 18-19)

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Issue of Consideration

Whether the pillion rider (deceased) was guilty of contributory negligence for not wearing a helmet and for riding with a minor driver without a license, and whether the compensation awarded by the Tribunal was excessive.

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Final Decision

Appeal partly allowed. The compensation awarded by the Tribunal is reduced by 50% on account of contributory negligence of the deceased. The insurance company is liable to pay Rs. 3,75,000 with interest at 7.5% per annum from the date of petition till realization.

Law Points

  • Contributory negligence
  • Motor accident compensation
  • Pillion rider's duty of care
  • Negligence of driver
  • Vicarious liability of owner
  • Insurance company's liability
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Case Details

2019 LawText (BOM) (07) 57

First Appeal No. 01535 of 2018

2019-07-30

Smt. Vibha Kankanwadi

Mr. M.M. Ambhore for appellant, Mr. V.V. Tarde for respondent no.01, Mr. L.B. Pallod for respondent no.02

The New India Assurance Company Ltd.

Balu @ Balasaheb s/o. Sitaram Berad & Rekha Vishwash Borude

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Nature of Litigation

First appeal against judgment and award in Motor Accident Claim Petition

Remedy Sought

Insurance company sought reduction of compensation on ground of contributory negligence of deceased

Filing Reason

Insurance company challenged the award of compensation by Motor Accident Claims Tribunal

Previous Decisions

Motor Accident Claims Tribunal awarded Rs. 7,50,000 with interest

Issues

Whether the deceased pillion rider was guilty of contributory negligence? Whether the compensation awarded by the Tribunal is excessive?

Submissions/Arguments

Appellant (Insurance Company): The deceased was negligent as he did not wear a helmet and rode with a minor driver without a license; he contributed to the accident. Respondents (Claimants): The driver was solely negligent; the deceased had no control over the vehicle; compensation is just and proper.

Ratio Decidendi

A pillion rider on a motorcycle has a duty to take reasonable care for his own safety, including wearing a helmet and not riding with an unlicensed minor driver. Failure to do so amounts to contributory negligence, reducing the compensation payable by the insurer proportionately.

Judgment Excerpts

The deceased was a pillion rider. He was an adult. He ought to have been aware of the fact that the driver was a minor and did not possess a valid driving license. He also did not wear a helmet. Therefore, he contributed to the accident. Considering the age of the deceased as 25 years, the multiplier would be 16 as per the decision in Sarla Verma v. Delhi Transport Corporation.

Procedural History

The Motor Accident Claims Tribunal passed an award in MACP No. 793 of 2011 on an unspecified date. The insurance company filed First Appeal No. 01535 of 2018 before the High Court of Bombay at Aurangabad. The High Court reserved judgment on 09 July 2019 and pronounced it on 30 July 2019.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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High Court High Court of Bombay at Aurangabad Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence of Deceased. The Court held that the deceased, a pillion rider on a motorcycle driven by a minor with...