Case Note & Summary
The appeal was filed by The New India Assurance Company Ltd. against the judgment and award of the Motor Accident Claims Tribunal, Jalna, in MACP No.256 of 2010. The Tribunal had allowed the claim petition filed by the respondents (claimants) under Section 166 of the Motor Vehicles Act, 1988, and awarded compensation of Rs.7.5 lakh with interest at 7.5% per annum, holding the Insurance Company jointly and severally liable with the owner of the vehicle. The claim arose from the death of Shrimant Misal, who was a passenger in a Toyota Qualis jeep bearing registration No.MH-15-A-9349, hired by him and his colleagues. The jeep collided with an unknown vehicle near Pulgaon at around 10-11 p.m., resulting in Shrimant's death. The claimants alleged negligence on the part of both drivers. The Insurance Company contended that the deceased was a gratuitous passenger and that the insurer was not liable for own damage claims. The High Court examined the evidence and found that the accident occurred due to the negligence of both drivers, attributing 50% contributory negligence to the driver of the jeep. The Court held that the Insurance Company is liable only to the extent of the negligence of its insured vehicle's driver. Consequently, the compensation was reduced to Rs.3.75 lakh (50% of Rs.7.5 lakh) with interest at 7.5% per annum from the date of the petition until realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Contributory Negligence - Apportionment of Compensation - Deceased was a gratuitous passenger in a hired jeep which collided with an unknown vehicle - Both drivers were negligent - Held that contributory negligence of the deceased's driver must be considered, and compensation apportioned accordingly (Paras 5-10). B) Motor Accident Claims - Liability of Insurer - Gratuitous Passenger - The deceased was not a third party but a passenger in the insured vehicle - Under the Motor Vehicles Act, 1988, the insurer is not liable for own damage claims of gratuitous passengers unless a separate policy is taken - However, since the accident involved another vehicle, the insurer of the jeep is liable to the extent of the negligence of its driver (Paras 6-12). C) Motor Accident Claims - Quantum of Compensation - Reduction of Award - The Tribunal awarded Rs.7.5 lakh with interest at 7.5% per annum - The High Court reduced the compensation to Rs.3.75 lakh with interest at 7.5% per annum, considering 50% contributory negligence (Paras 11-13).
Issue of Consideration
Whether the Insurance Company is liable to pay compensation for the death of a gratuitous passenger in a hired vehicle, and whether contributory negligence can be attributed to the deceased.
Final Decision
The appeal is partly allowed. The compensation awarded by the Tribunal is reduced from Rs.7.5 lakh to Rs.3.75 lakh with interest at 7.5% per annum from the date of the petition until realization. The Insurance Company is liable to pay the reduced amount.
Law Points
- Contributory negligence
- Gratuitous passenger
- Liability of insurer
- Section 166 Motor Vehicles Act
- 1988
- Apportionment of compensation
