Bombay High Court Allows Insurer's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence. Claimant's failure to prove income and contributory negligence of both drivers led to reduction of award from Rs. 3,00,000 to Rs. 1,50,000.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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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).

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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.

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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
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Case Details

2019 LawText (BOM) (12) 99

First Appeal No.1276 of 2019

2019-12-06

Vinay Joshi, J.

Mr.Lalit Limaye for Appellant, Mr.S. O. Ahmed for Respondent No.1

The Oriental Insurance Company Ltd.

Ku.Radhika d/o. Subhash Bhoyar, Waman Manohar Dhakate, Amit Ramchandra Tiwari

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Nature of Litigation

Appeal by insurer against award of compensation in motor accident claim

Remedy Sought

Insurer sought reduction of compensation and apportionment of liability due to contributory negligence

Filing Reason

Insurer challenged the Tribunal's award on grounds of contributory negligence and excessive compensation

Previous Decisions

Motor Accident Claims Tribunal, Chandrapur awarded Rs. 3,00,000 with interest at 7.5% per annum in M.A.C.P. No.144 of 2004

Issues

Whether the Tribunal erred in not considering contributory negligence of the auto rickshaw driver? Whether the compensation awarded is excessive without proof of income and disability?

Submissions/Arguments

Appellant argued that the accident occurred due to negligence of both drivers, and the Tribunal ought to have apportioned liability. Appellant contended that the claimant failed to prove her income and extent of permanent disablement, making the award excessive. Respondent no.1 supported the Tribunal's award.

Ratio Decidendi

In a motor accident claim, if the accident is caused by negligence of both drivers, liability must be apportioned equally. Compensation must be based on proved income and disability; in absence of evidence, notional income and reasonable disability assessment may be used.

Judgment Excerpts

The accident occurred due to rash and negligent driving on the part of both the drivers namely the driver of auto rickshaw and the driver of truck. The Tribunal ought to have considered the aspect of contributory negligence and apportioned the liability. In the absence of evidence, the notional income of the claimant can be considered as Rs. 15,000/- per annum. The compensation is reduced to Rs. 1,50,000/-.

Procedural History

Claimant filed M.A.C.P. No.144 of 2004 before Motor Accident Claims Tribunal, Chandrapur under Section 166 of Motor Vehicles Act, 1988. Tribunal awarded Rs. 3,00,000 on 31.10.2017. Insurer filed First Appeal No.1276 of 2019 before Bombay High Court, Nagpur Bench. Judgment reserved on 8.11.2019 and pronounced on 6.12.2019.

Acts & Sections

  • Motor Vehicles Act, 1988: 166, 168
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