Case Note & Summary
The appeal arises out of a judgment and award dated 20.06.2013 in M.V.C.No.301/2011 passed by the Principal Senior Civil Judge & M.A.C.T., Puttur, D.K. The appellant, IFFCO-TOKIO GIC Ltd., is the insurer of the vehicle involved in the accident. The respondents 1 to 3 are the legal representatives of the deceased who died in a motor vehicle accident. The Tribunal, acting under Section 163A of the Motor Vehicles Act, 1988, granted compensation of Rs.2,98,000/- to the claimants, payable by the appellant and respondent No.4 (the owner of the vehicle). The insurer appealed, contending that the deceased was guilty of contributory negligence and therefore the insurer should not be liable. The court considered the nature of Section 163A, which is a no-fault liability scheme intended to provide speedy compensation without proof of fault. The court held that the defence of contributory negligence is not available to the insurer under Section 163A. The court also noted that the compensation was determined based on the structured formula in the Second Schedule of the Act. Consequently, the court dismissed the appeal, upholding the Tribunal's award. The court directed the appellant to deposit the compensation amount if not already deposited, within four weeks from the date of the order.
Headnote
A) Motor Vehicles Act - Section 163A - No-Fault Liability - Contributory Negligence - The Tribunal awarded compensation under Section 163A of the Motor Vehicles Act, 1988, which is a no-fault liability scheme. The insurer appealed contending contributory negligence of the deceased. Held that under Section 163A, the defence of contributory negligence is not available to the insurer, as the provision is intended to provide speedy and simplified compensation without proof of fault. (Paras 2-4) B) Motor Vehicles Act - Section 163A - Structured Formula - Compensation - The Tribunal granted Rs.2,98,000/- to the claimants under Section 163A. The insurer challenged the quantum. Held that the compensation under Section 163A is determined based on the structured formula in the Second Schedule, and the Tribunal's award was in accordance with law. (Paras 2-4)
Issue of Consideration
Whether the insurer can avoid liability under Section 163A of the Motor Vehicles Act, 1988 on the ground of contributory negligence of the deceased?
Final Decision
Appeal dismissed. The judgment and award dated 20.06.2013 in M.V.C.No.301/2011 passed by the Principal Senior Civil Judge & M.A.C.T., Puttur, D.K. is upheld. The appellant is directed to deposit the compensation amount if not already deposited, within four weeks from the date of the order.
Law Points
- Section 163A of Motor Vehicles Act
- 1988 is a no-fault liability scheme
- contributory negligence not a defence
- structured formula compensation
- insurer cannot avoid liability on ground of negligence of deceased
