Case Note & Summary
The case arises from a motor accident claim. The appellant, New India Assurance Company Ltd., challenged the award of the Motor Accident Claims Tribunal, Latur, which had granted compensation to the claimants (respondents no.1 to 4), the legal heirs of the deceased Babruwan Bhaval. The deceased was riding a motorcycle when he was hit by a truck. The Tribunal held the truck driver negligent and awarded compensation. The Insurance Company appealed, contending that the deceased himself was negligent as he was driving without a valid driving license and contributed to the accident. The High Court examined the evidence and found that the deceased did not possess a valid driving license at the time of the accident. The court held that the deceased's act of driving without a license amounted to contributory negligence. Consequently, the court reduced the compensation amount by 50% on account of contributory negligence. The court also modified the award to reflect that the insurer is liable to pay only 50% of the awarded amount, and the remaining 50% is to be paid by the owner of the motorcycle (respondent no.5) and the driver (respondent no.6). The appeal was partly allowed.
Headnote
A) Motor Vehicles Act - Contributory Negligence - Section 166 Motor Vehicles Act, 1988 - Deceased driving without license - The court considered whether the insurer is liable to pay compensation when the deceased was driving a motorcycle without a valid driving license and contributed to the accident. Held that the deceased was negligent and the insurer is not liable to pay the entire compensation; the claimants are entitled to reduced compensation. (Paras 1-10)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when the deceased was driving a motorcycle without a valid driving license and contributed to the accident?
Final Decision
The appeal is partly allowed. The award of the Tribunal is modified. The claimants are entitled to 50% of the compensation amount awarded by the Tribunal, with proportionate interest. The Insurance Company is liable to pay 50% of the awarded amount, and the remaining 50% is to be paid by the owner and driver of the motorcycle.
Law Points
- Contributory negligence
- Motor accident compensation
- Driving without license
- Liability of insurer
- Section 166 Motor Vehicles Act
- 1988




