Case Note & Summary
The appellant, New India Assurance Company Ltd., filed an appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 27.8.2002 passed by the Motor Accident Claims Tribunal, Akola, in Motor Accident Claim Petition No.113 of 1998. The Tribunal had allowed the claim petition filed by the legal representatives of deceased Devidas Salunke, holding the driver, owner, and insurance company jointly and severally liable to deposit Rs.2,00,000 as compensation with interest at 9% per annum from the date of petition till realization. The deceased, Devidas Salunke, was a cobbler and agricultural labourer. On 1.6.1997, while returning from a marriage ceremony at village Kawatha to his village Shirsoli in a Matador bearing registration No.MH28/9713, the vehicle met with an accident on Risod-Malegaon Road near Jamthi Phata within the jurisdiction of Shripur Police Station, Washim, due to rash and negligent driving. The claimants, being the widow, minor children, and aged parents of the deceased, sought compensation. The Tribunal assessed the compensation based on the notional income of the deceased and awarded Rs.2,00,000. The insurance company appealed, contending that the Tribunal erred in holding it liable. The High Court, after hearing counsel for the appellant and respondent No.6 (owner), found no merit in the appeal and dismissed it, upholding the Tribunal's award. The court noted that the insurance company failed to establish any breach of policy conditions or other grounds to avoid liability. The judgment was reserved on 11.8.2015 and pronounced on 21.8.2015.
Headnote
A) Motor Accident Claims - Joint and Several Liability - Sections 166, 168 Motor Vehicles Act, 1988 - The Tribunal held the driver, owner, and insurance company jointly and severally liable to pay compensation of Rs.2,00,000 with 9% interest per annum from the date of petition till realization to the legal representatives of deceased Devidas Salunke, who died in a motor vehicle accident due to rash and negligent driving. The High Court upheld the award, finding no error in the Tribunal's decision. (Paras 1-2)
Issue of Consideration
Whether the Motor Accident Claims Tribunal was justified in holding the insurance company jointly and severally liable to pay compensation along with the driver and owner of the offending vehicle.
Final Decision
The High Court dismissed the appeal, upholding the judgment and award of the Motor Accident Claims Tribunal, Akola, dated 27.8.2002 in Motor Accident Claim Petition No.113 of 1998.
Law Points
- Joint and several liability of insurer
- driver
- and owner in motor accident claims
- Compensation for loss of dependency based on notional income of deceased
- Interest rate of 9% per annum from date of petition till realization
