Bombay High Court Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence of Deceased. Held that where the deceased was driving a motorcycle without a valid driving license and contributed to the accident, the insurer is not liable to pay the entire compensation and the claimants are entitled to reduced amount.

High Court: Bombay High Court Bench: AURANGABAD
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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)

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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?

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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
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Case Details

2019 LawText (BOM) (11) 4

First Appeal No. 02694 of 2017

0000-00-00

Mr. Ajit B. Kadethankar for appellant, Mr. Sanjay V. Mundhe for respondents

The New India Assurance Company Ltd.

Jankabai Babruwan Bhawal and others

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Nature of Litigation

First appeal against award of Motor Accident Claims Tribunal in a claim petition under Section 166 of Motor Vehicles Act, 1988.

Remedy Sought

The appellant Insurance Company sought reduction of compensation awarded to the claimants on the ground of contributory negligence of the deceased.

Filing Reason

The Insurance Company challenged the Tribunal's award contending that the deceased was driving without a valid driving license and contributed to the accident.

Previous Decisions

The Motor Accident Claims Tribunal, Latur, had awarded compensation to the claimants holding the truck driver negligent.

Issues

Whether the deceased was driving without a valid driving license? Whether the deceased contributed to the accident by his own negligence? Whether the Insurance Company is liable to pay the entire compensation?

Submissions/Arguments

Appellant argued that the deceased did not possess a valid driving license and was negligent, thus the insurer is not liable. Respondents argued that the truck driver was solely negligent and the deceased had a license.

Ratio Decidendi

A person driving a motor vehicle without a valid driving license is guilty of contributory negligence, and the insurer is not liable to pay the entire compensation; the compensation is to be reduced proportionately.

Judgment Excerpts

The deceased was driving the motorcycle without a valid driving license. The deceased contributed to the accident by his own negligence. The Insurance Company is liable to pay only 50% of the compensation.

Procedural History

The Motor Accident Claims Tribunal, Latur, awarded compensation to the claimants. The Insurance Company filed the present first appeal before the High Court.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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