Case Note & Summary
The present appeal was filed by The New India Assurance Company Ltd., the original respondent No.2-Insurance Company, challenging the judgment and award dated 26.08.2013 passed by the Motor Accident Claims Tribunal, Vaijapur in M.A.C.P. No.175 of 2012 (Old M.A.C.P. No.04/2009). The Tribunal had partly allowed the petition filed under Section 163-A of the Motor Vehicles Act, 1988, awarding compensation to the claimants, who are the parents, brother and sisters of the deceased Ganesh Raju Shelke. The claimants had alleged that on 01.09.2008, the deceased Ganesh was proceeding on a motor cycle bearing registration No. MH-20-BB-5895 towards village Sawangi from Lasur Station when he was dashed by another vehicle bearing registration No. MH-20-AU-5898 coming from the opposite direction. The motor cycle was driven by one Santosh Pawar, and Ganesh was a pillion rider. He sustained multiple injuries and died on the spot. The motor cycle MH-20-BB-5895 was owned by respondent No.1 (Raju Parasram Shelke) and insured with the appellant Insurance Company. The other motor cycle was owned by respondent No.6 (Sanjay Sudarshan Jaiswal) and respondent No.7 (Rahul Rameshrao Punekar). The claimants filed a claim petition under Section 163-A, which was allowed by the Tribunal, directing the Insurance Company to pay compensation. The Insurance Company appealed, contending that the deceased was a pillion rider on a motor cycle which was not insured with it, and that the owner of the offending vehicle (the other motor cycle) was not impleaded. The court considered the issue of whether the Insurance Company can avoid liability under Section 163-A on the ground that the deceased was a pillion rider on a motor cycle not insured with the appellant. The court held that under Section 163-A, the claimant need not prove negligence; the liability is based on the involvement of the vehicle. The Insurance Company of the vehicle in which the deceased was traveling as a pillion rider is liable to pay compensation. The court also held that the owner of the other vehicle is not a necessary party in an appeal by the Insurance Company when the claim is only against the insurer of the vehicle in which the deceased was traveling. The appeal was dismissed, and the award of the Tribunal was confirmed.
Headnote
A) Motor Vehicles Act - No-Fault Liability - Section 163-A - Claim under structured formula - The claimants, legal heirs of deceased Ganesh, sought compensation under Section 163-A of the Motor Vehicles Act, 1988 for death in a motor accident involving two vehicles. The Tribunal awarded compensation against the Insurance Company of the motor cycle driven by the deceased. The Insurance Company appealed contending that the deceased was a pillion rider on a motor cycle not insured with it. Held that under Section 163-A, the claimant need not prove negligence; the liability is based on the involvement of the vehicle. The Insurance Company of the vehicle in which the deceased was traveling as a pillion rider is liable to pay compensation. (Paras 1-10) B) Motor Vehicles Act - Necessary Party - Owner of offending vehicle - In an appeal by the Insurance Company against the award under Section 163-A, the owner of the other vehicle involved in the accident is not a necessary party if the claim is only against the insurer of the vehicle in which the deceased was traveling. The appeal can be decided without impleading the owner of the other vehicle. (Paras 11-13)
Issue of Consideration
Whether the Insurance Company can avoid liability under Section 163-A of the Motor Vehicles Act, 1988 on the ground that the deceased was a pillion rider on a motor cycle which was not insured with the appellant, and whether the owner of the offending vehicle is a necessary party in an appeal filed by the Insurance Company.
Final Decision
The appeal is dismissed. The judgment and award passed by the Motor Accident Claims Tribunal, Vaijapur in M.A.C.P. No.175 of 2012 (Old M.A.C.P. No.04/2009) dated 26.08.2013 is confirmed. No order as to costs.
Law Points
- Section 163-A Motor Vehicles Act
- 1988
- no-fault liability
- structured formula compensation
- contributory negligence not a defence
- owner of vehicle not necessary party for insurance company appeal
