Case Note & Summary
The case arises from a motor accident claim petition filed by the parents of a deceased person who died in a road accident involving a TATA Tipper bearing registration No. CG04ZC8638. The Motor Accident Claims Tribunal, Buldhana, in M.A.C.P. No. 142 of 2008 decided on 11.12.2012, awarded compensation of Rs.5,00,000 inclusive of Rs.50,000 under Section 140 of the Motor Vehicles Act, 1988, with interest at 7.5% per annum. The Tribunal directed respondent No. 2, Reliance General Insurance Company, to pay the compensation and recover it from the owner. The claimants appealed seeking enhancement to Rs.8,49,000. The High Court noted that the offending vehicle was insured with two insurance companies: Reliance General Insurance Company (respondent No. 2) and ICICI Lombard General Insurance Company Ltd. (respondent No. 3). The court held that both insurers are jointly and severally liable to pay compensation. On the quantum, the court assessed the deceased's notional income at Rs.4,000 per month, added 50% towards future prospects, deducted 1/3rd for personal expenses, applied a multiplier of 15, and added Rs.30,000 for loss of estate, Rs.30,000 for funeral expenses, and Rs.1,00,000 for loss of consortium, totaling Rs.7,00,000. The court modified the Tribunal's order to direct both insurance companies to pay the enhanced compensation equally, with the right to recover from the owner. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Double Insurance - Joint Liability - Sections 140, 149, 166 Motor Vehicles Act, 1988 - Where a vehicle is insured with two different insurance companies at the time of accident, both insurers are jointly and severally liable to pay compensation to the claimants, with a right to recover the amount from the owner of the vehicle. The Tribunal's direction to only one insurer to pay and recover was modified to apportion liability equally between the two insurers. (Paras 5-7) B) Motor Accident Claims - Enhancement of Compensation - Multiplier Method - Section 166 Motor Vehicles Act, 1988 - The High Court enhanced compensation from Rs.5,00,000 to Rs.7,00,000 by applying a multiplier of 15 to the deceased's notional income of Rs.4,000 per month, adding 50% towards future prospects, and deducting 1/3rd towards personal expenses, along with conventional heads. (Paras 4-5) C) Motor Accident Claims - Pay and Recover - Section 149 Motor Vehicles Act, 1988 - The insurance company directed to pay compensation to the claimants is entitled to recover the same from the owner of the offending vehicle if there is a breach of policy conditions, such as the vehicle being driven without a valid driving license. (Para 6)
Issue of Consideration
Whether the claimants are entitled to enhanced compensation and whether both insurance companies are jointly liable to pay compensation when the vehicle was insured with two different insurers at the time of accident.
Final Decision
The appeal is partly allowed. The compensation is enhanced from Rs.5,00,000 to Rs.7,00,000. Both respondent No. 2 and respondent No. 3 insurance companies are directed to pay the compensation amount equally, with the right to recover the same from the owner of the offending vehicle. The award shall carry interest at 7.5% per annum from the date of petition till realization.
Law Points
- Motor Vehicles Act
- 1988
- Section 140
- Section 166
- Section 149
- double insurance
- joint liability
- pay and recover
- enhancement of compensation
- multiplier method
- contributory negligence
