Case Note & Summary
The case involves an appeal by The Oriental Insurance Company Ltd. against the judgment and award dated 31.10.2017 passed by the Motor Accident Claims Tribunal, Chandrapur in M.A.C.P. No.144 of 2004. The claimant, Radhika Bhoyar, had sought compensation under Section 166 of the Motor Vehicles Act, 1988 for permanent disablement suffered in a vehicular accident on 8.2.2004. She was travelling in an auto rickshaw (MH-34/D/793) when a truck (MP-23/P/9862) coming from the opposite direction dashed against it due to rash and negligent driving by both drivers. The Tribunal awarded Rs. 3,00,000 with interest at 7.5% per annum, holding the insurer liable. The insurer appealed, contending that the Tribunal failed to consider contributory negligence of the auto rickshaw driver and that the compensation was excessive without proof of income or disability. The High Court found that the accident occurred due to negligence of both drivers, and the Tribunal ought to have apportioned liability equally. The claimant did not lead evidence to prove her income or the extent of permanent disablement. The Court held that in the absence of evidence, notional income of Rs. 15,000 per annum could be considered, and disability assessed at 30%. Applying a multiplier of 15, the loss of future income was calculated at Rs. 67,500. Adding Rs. 50,000 for pain and suffering and Rs. 25,000 for medical expenses, total compensation was assessed at Rs. 1,42,500, rounded to Rs. 1,50,000. The Court allowed the appeal, set aside the Tribunal's award, and directed the insurer to pay Rs. 1,50,000 with interest at 7.5% from the date of petition till realization, with the insurer having the right to recover 50% from the owner and driver of the auto rickshaw.
Headnote
A) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - Sections 166, 168 Motor Vehicles Act, 1988 - Claimant sustained injuries in collision between auto rickshaw and truck - Both drivers found negligent - Tribunal failed to apportion liability - Held that contributory negligence must be considered and liability apportioned equally (Paras 7-9). B) Motor Accident Claims - Assessment of Compensation - Permanent Disablement - Sections 166, 168 Motor Vehicles Act, 1988 - Claimant failed to prove income and extent of disability - Tribunal awarded Rs. 3,00,000 without proper evidence - Held that compensation must be based on proved facts; reduced to Rs. 1,50,000 considering notional income and 30% disability (Paras 10-12).
Issue of Consideration
Whether the Tribunal erred in awarding compensation without considering contributory negligence of the claimant's driver and in assessing income and disability.
Final Decision
Appeal allowed. The impugned judgment and award dated 31.10.2017 is set aside. The claimant is entitled to compensation of Rs. 1,50,000 with interest at 7.5% per annum from the date of petition till realization. The insurer shall pay the amount and may recover 50% from the owner and driver of the auto rickshaw.
Law Points
- Contributory negligence
- burden of proof
- assessment of compensation
- permanent disablement
- Motor Vehicles Act
- 1988





