Case Note & Summary
The case arises from a motor accident claim under the Motor Vehicles Act, 1988. The appellants, Gopalrao Punjaji Gayki and Smt. Kalpana Gopalrao Gayki, were claimants before the Motor Accident Claims Tribunal, Buldhana, in M.A.C.P. No. 142 of 2008. The Tribunal awarded compensation of Rs.5,00,000 inclusive of Rs.50,000 under Section 140 of the Act, with interest at 7.5% per annum from the date of filing of the petition. The Tribunal directed respondent No. 2, Reliance General Insurance Company, to pay the compensation and recover it from the owner of the vehicle. The claimants appealed to the High Court seeking enhancement of compensation to Rs.8,49,000. The offending vehicle, a TATA Tipper bearing registration No. CG04ZC8638, was insured with two insurance companies: respondent No. 2 (Reliance General Insurance) and respondent No. 3 (ICICI Lombard General Insurance). The High Court noted that the Tribunal had not apportioned liability between the two insurers. The court held that the claimants are entitled to enhanced compensation of Rs.8,49,000 with interest at 7.5% per annum from the date of the petition. The court further directed that the liability to pay the compensation be apportioned equally between respondent No. 2 and respondent No. 3, and both insurers are jointly and severally liable. The appeal was allowed accordingly.
Headnote
A) Motor Accident Compensation - Enhancement of Compensation - Section 166, Motor Vehicles Act, 1988 - Claimants sought enhancement from Rs.5,00,000 to Rs.8,49,000 - Court allowed enhancement to Rs.8,49,000 with interest at 7.5% per annum - Held that the Tribunal's award was inadequate and required enhancement (Paras 2-4). B) Motor Accident Compensation - Liability of Multiple Insurers - Section 149, Motor Vehicles Act, 1988 - Offending vehicle insured with two insurance companies - Tribunal directed only one insurer to pay with right to recover from owner - Court held that liability must be apportioned equally between the two insurers - Held that both insurers are jointly and severally liable to pay compensation (Paras 3-5).
Issue of Consideration
Whether the claimants are entitled to enhanced compensation and whether the liability to pay compensation should be apportioned between two insurance companies when the offending vehicle was insured with both.
Final Decision
Appeal allowed. The compensation is enhanced to Rs.8,49,000 with interest at 7.5% per annum from the date of filing of the petition till realization. The liability to pay the compensation is apportioned equally between respondent No.2 and respondent No.3, who are jointly and severally liable.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 140
- Section 149
- Compensation
- Apportionment of liability
- Multiple insurers
- Pay and recover
