High Court of Gujarat Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Lack of Proof of Income and Negligence of Driver. Claimants failed to establish income of deceased and contributory negligence was not considered by Tribunal.

High Court: Gujarat High Court In Favour of Prosecution

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2026-05-19 19:10:34

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Case Note & Summary

The present appeals were filed by the National Insurance Company Ltd. under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 29.07.2015 passed by the Motor Accident Claims Tribunal (Main), Bhavnagar in MACP Nos. 390 and 392 of 2003. The facts of the case are that on 22.02.2003, the deceased persons were traveling along with one injured Shantibhai from Gorkhi Village to Sosiya for an orchestra program in a three-wheel tempo bearing registration No. GJ 04 V 1818 with their goods i.e. musical instruments and stage goods. When they reached near the sign board of village Bapda, due to rash driving of the respondent no.1 (driver), the said three wheeler turned turtle. In the accident, Rameshbhai (deceased in MACP No.390 of 2003) and Vikrambhai (deceased in MACP No.392 of 2003) succumbed to injuries and Shantibhai sustained serious injuries. The original claimants filed claim petitions under Section 166 of the Motor Vehicles Act for compensation of Rs.6,00,000/- each. The Tribunal allowed the claim petitions and awarded Rs.6,33,000/- and Rs.6,57,000/- respectively with interest at 9% per annum. The Insurance Company appealed contending that the claimants failed to prove the income of the deceased and that the Tribunal did not consider contributory negligence as the deceased were traveling in a goods vehicle. The High Court held that the claimants did not produce any evidence regarding income, and the Tribunal erred in assessing income without basis. Further, the deceased were traveling in a goods vehicle with goods, which is prohibited, and thus they contributed to the accident. The Court set aside the impugned award and remanded the matter to the Tribunal for fresh consideration, directing the claimants to lead evidence on income and negligence.

Headnote

A) Motor Accident Claims - Compensation - Proof of Income - Section 166 Motor Vehicles Act, 1988 - The claimants failed to produce any evidence regarding the income of the deceased persons. The Tribunal erred in assessing income without any basis. Held that compensation must be based on actual proof of income (Paras 5-6).

B) Motor Accident Claims - Negligence - Contributory Negligence - Section 166 Motor Vehicles Act, 1988 - The accident occurred due to rash driving of the tempo driver. However, the deceased were traveling with goods in a goods vehicle, which is prohibited. The Tribunal did not consider contributory negligence. Held that the claimants contributed to the accident by traveling in a goods vehicle (Paras 7-8).

Issue of Consideration

Whether the Tribunal erred in awarding compensation without proper proof of income and without considering contributory negligence of the driver.

Final Decision

Appeals allowed. Impugned judgment and award dated 29.07.2015 passed by Motor Accident Claims Tribunal (Main), Bhavnagar in MACP Nos. 390 and 392 of 2003 are set aside. Matters are remanded to the Tribunal for fresh consideration. Claimants are directed to lead evidence regarding income of the deceased and negligence. Tribunal to decide afresh within six months.

Law Points

Motor Vehicles Act
1988
Section 166
Section 173
Compensation
Negligence
Income Proof
Contributory Negligence

Case Details

2026 LawText (GUJ) (01) 416

R/First Appeal No. 2494 of 2015 with R/First Appeal No. 2495 of 2015

2026-01-22

D. M. Vyas

Mr. Vibhuti Nanavati for Appellant, Mr. Tulshi R Savani for Defendant No. 3.1

National Insurance Company Ltd. Bhavnagar

Bijalbhai Dhudabhai Sodha & Ors.

Nature of Litigation

Appeal against award of compensation in motor accident claim

Remedy Sought

Insurance company sought reduction of compensation awarded by Tribunal

Filing Reason

Insurance company aggrieved by Tribunal's award without proper proof of income and without considering contributory negligence

Previous Decisions

Tribunal awarded Rs.6,33,000/- and Rs.6,57,000/- with 9% interest in MACP Nos. 390 and 392 of 2003

Issues

Whether the Tribunal erred in awarding compensation without proper proof of income of the deceased? Whether the Tribunal erred in not considering contributory negligence of the deceased who were traveling in a goods vehicle?

Submissions/Arguments

Appellant argued that claimants failed to produce any evidence regarding income of deceased, and Tribunal assessed income without basis. Appellant argued that deceased were traveling in a goods vehicle with goods, which is prohibited, and thus they contributed to the accident.

Ratio Decidendi

Compensation under Motor Vehicles Act must be based on actual proof of income; traveling in a goods vehicle with goods constitutes contributory negligence.

Judgment Excerpts

The claimants have not produced any evidence regarding the income of the deceased persons. The deceased were traveling in a goods vehicle with their goods, which is prohibited under the Motor Vehicles Act.

Procedural History

Claim petitions filed under Section 166 of Motor Vehicles Act, 1988 before Motor Accident Claims Tribunal, Bhavnagar. Tribunal passed award on 29.07.2015. Insurance company filed appeals under Section 173 before High Court. High Court admitted appeals on 06.01.2016 and finally decided on 22.01.2026.