Case Note & Summary
The present appeal arises from a judgment and award dated 28.06.2017 passed by the Motor Accident Claims Tribunal (Main), Aravalli at Modasa in MACP No.883 of 2015. The appellants, who are the original claimants and legal representatives of the deceased Vinodbhai Sanjabhai Bhagora, filed a claim petition under Section 163A of the Motor Vehicles Act, 1988 seeking compensation for the death of the deceased in a motor vehicle accident. The Tribunal awarded compensation but assessed 50% negligence on the part of the deceased and deducted the compensation accordingly. The claimants appealed, contending that under Section 163A, which is a no-fault liability provision, the assessment of negligence is impermissible, and that the Tribunal erred in deducting compensation despite the fact that additional premium under IMT 17 for legal liability had been paid. The respondent-insurer opposed the appeal, arguing that the Tribunal's award was based on proper appreciation of evidence. The High Court, after hearing the parties and examining the record, held that the claim petition was filed under Section 163A, which provides for a structured formula compensation without requiring proof of negligence. Relying on the Supreme Court decision in United India Insurance Company v. Sunil Kumar, (2014) 1 SCC 580, the court held that assessment of negligence and apportionment of liability are not permissible under Section 163A. The court further noted that additional premium had been paid beyond statutory coverage under IMT 17, which creates a contractual liability on the insurer. Consequently, the court allowed the appeal, set aside the Tribunal's award to the extent of the deduction on negligence, and directed the insurer to pay the full compensation as per the structured formula without any reduction.
Headnote
A) Motor Accident Claims - Section 163A Motor Vehicles Act, 1988 - No-Fault Liability - Negligence Assessment Impermissible - The Tribunal's assessment of 50% negligence on the deceased in a claim under Section 163A is contrary to law as Section 163A provides for a structured formula compensation based on no-fault liability, and contributory negligence cannot be considered. (Paras 3, 5-6) B) Motor Accident Claims - Additional Premium - IMT 17 - Contractual Liability of Insurer - Where additional premium beyond statutory coverage under IMT 17 for legal liability has been paid, the insurer is contractually bound to indemnify the insured, and the claimants are entitled to compensation without deduction on that ground. (Paras 3, 6) C) Motor Accident Claims - Compensation - Deduction on Negligence - Impermissible - The Tribunal's deduction of compensation on account of alleged negligence of the deceased is unsustainable in law, as the claim under Section 163A is not subject to reduction on the ground of contributory negligence. (Paras 3, 5-6)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in assessing 50% negligence on the deceased and deducting compensation in a claim under Section 163A of the Motor Vehicles Act, 1988, and whether the insurer is liable to pay compensation when additional premium for legal liability beyond statutory coverage has been paid.
Final Decision
The appeal is allowed. The judgment and award dated 28.06.2017 passed by the Motor Accident Claims Tribunal (Main), Aravalli at Modasa in MACP No.883 of 2015 is set aside to the extent of deduction on account of negligence. The respondent-insurer is directed to pay the full compensation as per the structured formula under Section 163A without any reduction.
Law Points
- Section 163A Motor Vehicles Act
- 1988 is a no-fault liability provision
- negligence assessment not permissible
- additional premium under IMT 17 creates contractual liability on insurer
- structured formula compensation cannot be reduced by contributory negligence
