Case Note & Summary
The case involved a fatal motorcycle accident on 08.12.2007 where the rider lost control and collided with a roadside stone, resulting in the death of both the rider and pillion rider. The legal representatives of the deceased filed claim petitions under Section 163A of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Belagavi. The Tribunal awarded compensation of Rs.4,58,000 to the dependents of the rider and Rs.3,41,000 to the dependents of the pillion rider. The insurance company, New India Assurance Co. Ltd., challenged the quantum in appeals, contending that the rider was not a third party and thus the liability was limited to the personal accident cover of Rs.1,00,000 under the insurance contract. The claimants cross-appealed seeking enhancement. The High Court considered the primary legal issue whether a rider who is not the owner of the vehicle can claim compensation under Section 163A and, if so, to what extent. The court analyzed the statutory scheme under Chapter XI, noting that Section 163A falls under third-party risk insurance and the Second Schedule clearly mentions 'Third Party Fatal Accidents'. The court observed that the rider steps into the shoes of the owner and cannot make a claim against his own insurer as a third party. Consequently, compensation for the rider's death is governed by the contractual terms of the insurance policy, specifically the compulsory personal accident cover, which was capped at Rs.1,00,000. The court relied on precedents including Ningamma, Ramkhiladi, and Dhanraj, which held that a rider is not a third party. It found that the Tribunal erred in granting higher compensation and reduced the award accordingly. The claimants' appeals for enhancement were dismissed.
Headnote
A) Motor Vehicles Act, 1988 - Section 163A - Third-Party Claims - Rider of Motorcycle - A rider of a vehicle who is not the owner cannot claim compensation as a third party under Section 163A; the liability of the insurer is limited to the contractual personal accident cover, which was Rs.1,00,000. Held that the Tribunal erred in awarding Rs.4,58,000 to the legal representatives of the deceased rider; compensation reduced to Rs.1,00,000 (Paras 12-17).
Issue of Consideration
Whether the rider of the vehicle involved in the accident who is not the owner would be entitled to a compensation in a claim under Section 163A of the Act, if so, to what extent?
Final Decision
The High Court held that the rider is not a third party and the compensation under Section 163A is limited to the personal accident cover of Rs.1,00,000; thus the Tribunal's award of Rs.4,58,000 for the rider was reduced to Rs.1,00,000 and the claimants' appeal for enhancement was dismissed. The pillion rider's claim was not specifically addressed in the provided excerpt.
Law Points
- Rider of vehicle is not a third party
- claim under Section 163A limited to third-party risks
- compensation for rider's death capped at personal accident cover amount as per insurance contract
- Section 163A of Motor Vehicles Act 1988
- Second Schedule applicable only to third-party claims
Case Details
2020 LawText (KAR) (10) 16
MFA No.22058/2011 c/w MFA No.21929/2012 MFA No.21930/2012 MFA No.22059/2011
R.R. Mane, Girish S. Hiremath, Sanjay S. Katageri, K. Anandkumar, N.R. Kuppelur
The Divisional Manager, The New India Assurance Co. Ltd.
Tushar Uttam Nagavekar, Salim Ismail Pattanwale, Shobhawwa Shekhar Pujari, Pooja Shekhar Pujari, Gangawwa Lingappa @ Shivappa Pujari
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Nature of Litigation
Appeals under Section 173(1) of Motor Vehicles Act against awards of compensation by Motor Accident Claims Tribunal in claims under Section 163A.
Remedy Sought
Insurance company sought reduction of compensation awarded; claimants sought enhancement.
Filing Reason
Tribunal awarded compensation in death claims of rider and pillion rider in motorcycle accident; insurance company challenged quantum.
Previous Decisions
The Presiding Officer, Fast Track Court-III & Additional MACT, Belagavi, passed awards on 05.02.2011 in MVC Nos.440/2008 and 441/2008, granting Rs.4,58,000 and Rs.3,41,000 respectively.
Issues
Whether the rider of the vehicle involved in the accident who is not the owner would be entitled to a compensation in a claim under Section 163A of the Act, if so, to what extent?
Submissions/Arguments
Insurance company contended that the rider steps into the shoes of the owner and cannot claim against his own insurer; compensation for the rider is limited to the contractual personal accident cover (Rs.1,00,000) as per the insurance policy.
Claimants contended that under Section 163A, no negligence need be proved and compensation should be awarded as per the Second Schedule without any limitation, akin to a claim under Section 166.
Ratio Decidendi
A rider of a motor vehicle, who is not the owner, is not a third party for purposes of Section 163A of the Motor Vehicles Act, 1988. The liability of the insurer towards the rider is governed by the insurance contract and is limited to the compulsory personal accident cover, which in this case was Rs.1,00,000. The Second Schedule to the Act applies only to third-party claims and cannot be invoked for claims by the rider himself.
Judgment Excerpts
Whether the rider of the vehicle involved in the accident who is not the owner would be entitled to a compensation in a claim under Section 163A of the Act, if so, to what extent?
The compensation that is available in a claim under Section 163A of the Act is hedged by the stipulation made in the Second Schedule to the legal heirs of the victim.
Thus, Chapter XI under which Section 163A falls and the Schedule appended to Section 163A makes it unmistakably clear that the claims are maintainable only against third party risks.
Procedural History
Accident occurred on 08.12.2007; claim petitions filed under Section 163A before MACT Belagavi in 2008; Tribunal passed common judgment and awards on 05.02.2011 in MVC Nos.440/2008 and 441/2008, granting Rs.4,58,000 and Rs.3,41,000 respectively; Insurance company filed MFA No.22058/2011 and MFA No.22059/2011 challenging quantum; Claimants filed MFA No.21929/2012 and MFA No.21930/2012 seeking enhancement; High Court heard and reserved judgment, delivered on 01.10.2020.
Acts & Sections
- Motor Vehicles Act, 1988: 163A, 173(1)
