Case Note & Summary
The case arises from a motor accident claim filed by the parents of a deceased 22-year-old man. On 22.12.2008, the deceased was travelling in a jeep owned by respondent No. 3 and driven by respondent No. 4. The driver asked the deceased to change seats, and while doing so, due to the driver's rash and negligent driving, the deceased was thrown out of the running jeep, sustaining grievous injuries. He succumbed to those injuries on 04.03.2009. The claimants filed a petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs. 5,00,000/-. The owner and driver contested, denying negligence and alleging contributory negligence by the deceased. The insurer (appellant) also contested, denying liability. The Motor Accident Claims Tribunal, Beed, in M.A.C.P. No. 97/2009, awarded compensation of Rs. 4,50,000/- with interest at 7.5% per annum, holding the driver negligent and the insurer liable. The insurer appealed under Section 173 of the Act. The High Court examined the evidence, including the FIR and testimony of an eye-witness, and found that the driver's negligence was established. The court also noted that the jeep was a passenger vehicle, not a goods vehicle, and the deceased was a third party, so the insurer was liable. The appeal was dismissed, and the award was confirmed.
Headnote
A) Motor Vehicles Act - Compensation - Rash and Negligent Driving - Section 166, Motor Vehicles Act, 1988 - Deceased was travelling in a jeep and was thrown out while changing seats due to driver's rash driving - Tribunal held driver negligent and awarded compensation - High Court affirmed finding of negligence based on evidence of eye-witness and FIR - Held that the Tribunal's finding of negligence was correct (Paras 2-5). B) Motor Vehicles Act - Insurer's Liability - Third Party Risk - Section 147, Motor Vehicles Act, 1988 - The jeep was insured with the appellant - The deceased was a third party as he was not a gratuitous passenger in a goods vehicle - The jeep was a passenger vehicle - Insurer liable to indemnify - Held that the insurer is liable to pay compensation (Paras 6-8).
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in holding the appellant-insurer liable to pay compensation when the deceased was thrown out of a jeep due to alleged rash and negligent driving, and whether the deceased was a gratuitous passenger in a goods vehicle.
Final Decision
The High Court dismissed the appeal and confirmed the award of compensation of Rs. 4,50,000/- with interest at 7.5% per annum from the date of petition till realization.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Rash and negligent driving
- Compensation
- Third party risk
- Owner's liability
- Insurer's liability





