Case Note & Summary
The appeal was filed by the insurance company, Reliance General Insurance Company Limited, challenging the judgment and award dated 09.05.2014 passed by the I Additional Senior Civil Judge and Member, Additional Motor Accident Claims Tribunal, Hubli, in MVC No.339/2012, awarding compensation of Rs.5,91,600/- with interest at 6% p.a. from the date of petition till realization. The claimants, respondents 1 to 5, are the legal representatives of the deceased, who died in a motor vehicle accident. The deceased was the driver of the lorry involved in the accident. The insurance company contended that the deceased driver was negligent and therefore the claimants are not entitled to compensation. The court considered the issue whether in a claim under Section 163A of the Motor Vehicles Act, 1988, the claimants are required to prove negligence. The court held that Section 163A is a no-fault liability provision and the claimants are not required to prove negligence. The structured formula under the Second Schedule is applied. The defence of contributory negligence is not available to the insurance company. The court found no grounds to interfere with the Tribunal's award and dismissed the appeal.
Headnote
A) Motor Accident Claims - Section 163A of Motor Vehicles Act, 1988 - No Need to Prove Negligence - The claim under Section 163A is based on the structured formula and the claimants are not required to prove negligence on the part of the driver of the vehicle involved in the accident. The Tribunal's award of compensation under Section 163A is correct and does not require interference. (Paras 6-8) B) Motor Accident Claims - Contributory Negligence - Not a Defence under Section 163A - The defence of contributory negligence is not available to the insurance company in a claim under Section 163A of the Motor Vehicles Act, 1988. The insurance company cannot avoid liability on the ground that the deceased driver was negligent. (Paras 6-8)
Issue of Consideration
Whether the claimants are required to prove negligence on the part of the driver of the vehicle involved in the accident in a claim petition filed under Section 163A of the Motor Vehicles Act, 1988?
Final Decision
Appeal dismissed. The judgment and award dated 09.05.2014 passed in MVC No.339/2012 by the I Additional Senior Civil Judge and Member, Additional Motor Accident Claims Tribunal, Hubli, is confirmed.
Law Points
- Section 163A of Motor Vehicles Act
- 1988 does not require proof of negligence
- structured formula compensation
- no need to prove negligence in claim under Section 163A
- insurance company cannot avoid liability on ground of contributory negligence under Section 163A
