High Court of Bombay at Nagpur Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence and Lack of Proof of Income. The Court held that the deceased's contributory negligence must be considered and notional income should be assessed at Rs.3,000 per month under the Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The case arises from a motor accident claim petition filed by the legal heirs of Raju Waghmare, who died in a collision between two motorcycles on 6 May 2011. The claimants, including his widow, minor children, and parents, sought compensation of Rs.9,00,000 from the insurer of the offending motorcycle (National Insurance Company) and its owner. The Motor Accident Claims Tribunal, Buldana, awarded Rs.7,52,000 with interest, holding the offending vehicle solely responsible and assessing the deceased's income at Rs.6,000 per month as a vegetable vendor. The insurance company appealed, challenging the finding of negligence and the income assessment. The High Court observed that the FIR was lodged six days after the accident, and no independent witness was examined to prove negligence. The court noted that the deceased was also riding a motorcycle and a head-on collision suggests contributory negligence. Therefore, the court apportioned negligence equally between the two drivers. Regarding income, the court found no evidence to support the Tribunal's assessment of Rs.6,000 per month and held that in the absence of proof, the notional income should be Rs.3,000 per month as per the Second Schedule of the Motor Vehicles Act. The court recalculated the compensation: annual income Rs.36,000, deduct 1/3rd for personal expenses, apply multiplier 17, add Rs.5,000 for loss of consortium, Rs.2,000 for funeral expenses, and Rs.2,500 for loss of estate. After deducting 50% for contributory negligence, the total compensation was reduced to Rs.3,17,000. The appeal was partly allowed, modifying the award accordingly.

Headnote

A) Motor Vehicles Act - Contributory Negligence - Apportionment of Liability - The Court held that when two vehicles are involved in a head-on collision and the deceased was also riding a motorcycle, there is a possibility of contributory negligence. The Tribunal's finding that the offending vehicle was solely responsible was based on surmises and conjectures, as the FIR was lodged six days after the accident and no independent witness was examined. The Court apportioned negligence equally between the two drivers. (Paras 6-10)

B) Motor Vehicles Act - Assessment of Income - Notional Income - The Tribunal assessed the income of the deceased at Rs.6,000 per month as a vegetable vendor without any evidence. The Court held that in the absence of proof, the notional income should be taken as Rs.3,000 per month as per the Second Schedule of the Motor Vehicles Act. (Paras 11-13)

C) Motor Vehicles Act - Compensation - Deductions - The Court recalculated the compensation by applying a multiplier of 17, deducting 1/3rd for personal expenses, and adding conventional amounts for loss of consortium and funeral expenses. The total compensation was reduced from Rs.7,52,000 to Rs.3,17,000. (Paras 14-16)

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Issue of Consideration

Whether the Tribunal erred in fixing the entire negligence on the driver of the offending vehicle and in assessing the income of the deceased at Rs.6,000 per month without any evidence.

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Final Decision

The appeal is partly allowed. The impugned judgment and order is modified. The claimants are entitled to total compensation of Rs.3,17,000 with interest at 6% per annum from the date of petition till realization. The appellant insurance company is directed to deposit the amount within six weeks.

Law Points

  • Contributory negligence
  • Notional income assessment
  • Standard of proof in motor accident claims
  • Apportionment of liability
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Case Details

2016 LawText (BOM) (12) 96

First Appeal No.21 of 2017 (First Appeal Stamp No.16762 of 2015)

2016-12-16

S.B. Shukre, J.

Smt. Gauri Venkatraman for Appellant, Shri R.N. Ghuge for Respondent Nos.1 to 5

National Insurance Company Limited

Smt. Sharda wd/o. Raju Waghmare & Ors.

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Nature of Litigation

Appeal against award of Motor Accident Claims Tribunal in a claim petition under Section 166 of the Motor Vehicles Act, 1988.

Remedy Sought

The appellant insurance company sought reduction of compensation awarded by the Tribunal.

Filing Reason

The insurance company challenged the Tribunal's finding of sole negligence on the offending vehicle and the assessment of deceased's income at Rs.6,000 per month without evidence.

Previous Decisions

The Motor Accident Claims Tribunal, Buldana, awarded Rs.7,52,000 with interest in M.A.C.P No. 198/2011 on 15.11.2014.

Issues

Whether the Tribunal erred in holding the offending vehicle solely responsible for the accident? Whether the assessment of deceased's income at Rs.6,000 per month was justified without evidence?

Submissions/Arguments

Appellant argued that the FIR was lodged belatedly and no independent witness was examined, so the finding of negligence was based on surmises. Appellant argued that the deceased's income was not proved and should be taken as per the Second Schedule of the MV Act. Respondents supported the Tribunal's findings.

Ratio Decidendi

In the absence of clear evidence, contributory negligence can be inferred when two vehicles are involved in a head-on collision. Notional income for a vegetable vendor without proof should be assessed at Rs.3,000 per month as per the Second Schedule of the Motor Vehicles Act.

Judgment Excerpts

The FIR of the incident dated 6.5.2011 was, however, filed about six days thereafter i.e. on 12th May, 2011 by the father of the deceased. In the absence of any evidence to the contrary, it would be reasonable to hold that both the drivers were equally negligent. In the absence of any evidence, the notional income of the deceased could be taken as Rs.3,000 per month as per the Second Schedule of the MV Act.

Procedural History

Claim petition filed under Section 166 MV Act before Motor Accident Claims Tribunal, Buldana. Tribunal awarded Rs.7,52,000 on 15.11.2014. Insurance company appealed to High Court. Appeal heard and decided on 16.12.2016.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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