High Court of Bombay Dismisses Insurer's Appeal in Motor Accident Claim — Deceased Thrown Out of Jeep Due to Rash Driving. Negligence of Driver Proved and Deceased Not a Gratuitous Passenger in a Goods Vehicle, Insurer Liable.

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 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).

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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.

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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
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Case Details

2019 LawText (BOM) (11) 3

First Appeal No. 1774 of 2011

2019-11-26

Mangesh S. Patil

Mr. Kulkarni Sudhir V (for appellant), Mr. D. R. Jayabhar (for respondents 1 & 2), Mr. V. A. Dhakne (for respondents 3 & 4)

United India Insurance Company Ltd.

Ravindra s/o Nana Panchghate, Savita w/o Ravindra Panchghate, Sukhdeo s/o Mahadeo Pawar, Ram s/o Babasaheb Shinde

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Nature of Litigation

Appeal under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award of the Motor Accident Claims Tribunal, Beed, in M.A.C.P. No. 97/2009.

Remedy Sought

The appellant-insurer sought to set aside the award of compensation of Rs. 4,50,000/- with interest.

Filing Reason

The insurer was aggrieved by the Tribunal's finding of negligence and its liability to pay compensation.

Previous Decisions

The Motor Accident Claims Tribunal, Beed, in M.A.C.P. No. 97/2009 dated 26.04.2011, awarded compensation of Rs. 4,50,000/- with interest at 7.5% per annum to the claimants.

Issues

Whether the Tribunal erred in holding the driver negligent? Whether the insurer is liable to pay compensation?

Submissions/Arguments

Appellant argued that the accident occurred due to the deceased's own negligence while changing seats, and the driver was not negligent. Respondents 1 and 2 (claimants) supported the Tribunal's finding of negligence and liability.

Ratio Decidendi

The driver's negligence was proved by the FIR and eye-witness testimony. The deceased was a third party, not a gratuitous passenger in a goods vehicle, so the insurer is liable to indemnify the owner.

Judgment Excerpts

The deceased was travelling in a jeep which was owned by the respondent No. 3 and was being driven by the respondent No. 4. The jeep was insured with the appellant/Insurance Company at the relevant time. The Tribunal has rightly held that the accident occurred due to rash and negligent driving of respondent No. 4.

Procedural History

The claimants filed M.A.C.P. No. 97/2009 before the Motor Accident Claims Tribunal, Beed, which awarded compensation on 26.04.2011. The insurer appealed to the High Court under Section 173 of the Motor Vehicles Act, 1988.

Acts & Sections

  • Motor Vehicles Act, 1988: 166, 173
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High Court High Court of Bombay Dismisses Insurer's Appeal in Motor Accident Claim — Deceased Thrown Out of Jeep Due to Rash Driving. Negligence of Driver Proved and Deceased Not a Gratuitous Passenger in a Goods Vehicle, Insurer Liable.
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