Case Note & Summary
The appeal was filed by United India Insurance Co. Ltd. challenging the award dated 16.02.2018 passed by the XV Additional Small Causes Judge & Member, MACT, Mayo Hall Unit, Bengaluru in MVC No.7434/2016. The Tribunal had awarded Rs.16,57,000/- with interest at 9% p.a. to the claimants (respondents 1 to 3), who are the legal representatives of the deceased, a 45-year-old businessman earning Rs.12,000/- per month. The accident occurred on 20.08.2016 involving a bus bearing registration No.KA-41/B-4546 owned by respondent No.4 (L.V.Travels) and insured with the appellant. The claimants filed a petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation. The Tribunal, after considering evidence, held that the accident was caused due to rash and negligent driving of the bus driver, who did not possess a valid driving license. The Tribunal computed compensation as follows: loss of dependency Rs.13,44,000/- (Rs.12,000/- income minus 1/3rd personal expenses, multiplied by 14), loss of consortium Rs.1,20,000/-, loss of estate Rs.15,000/-, funeral expenses Rs.15,000/-, and loss of love and affection Rs.1,00,000/-, total Rs.16,57,000/-. The Insurance Company appealed primarily on the ground that the driver had no valid driving license, and therefore the company should not be liable. The High Court, after hearing arguments, held that the Insurance Company is liable to pay compensation to third parties even if the driver had no license, but is entitled to recover the amount from the owner of the vehicle under Section 149(2) of the MV Act. The Court also upheld the quantum of compensation as just and proper, noting that the claimants had proved the income of the deceased and the multiplier was correctly applied. The appeal was partly allowed, directing the Insurance Company to pay the awarded amount with interest to the claimants and then recover the same from the owner in the same proceedings.
Headnote
A) Motor Accident Claims - Compensation - Quantum - The Tribunal awarded Rs.16,57,000/- to the claimants for the death of a 45-year-old businessman earning Rs.12,000/- per month, applying multiplier 14 and deducting 1/3rd towards personal expenses. The High Court upheld the quantum as just and reasonable, noting no evidence to show the deceased's income was less. (Paras 1-10) B) Motor Accident Claims - Driving License - Liability of Insurance Company - The driver did not possess a valid driving license at the time of the accident. The Insurance Company is liable to pay compensation to third parties but is entitled to recover the same from the owner of the vehicle under Section 149(2) of the Motor Vehicles Act, 1988. (Paras 11-15) C) Motor Accident Claims - Pay and Recover - The High Court directed the Insurance Company to pay the awarded compensation with interest to the claimants and then recover the same from the owner of the vehicle in the same proceedings, without the need for a separate suit. (Para 16)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when the driver did not possess a valid driving license at the time of the accident, and whether the Tribunal's award of compensation is just and proper.
Final Decision
The appeal is partly allowed. The Insurance Company is directed to pay the compensation amount of Rs.16,57,000/- with interest at 9% p.a. from the date of petition till realization to the claimants within six weeks. Thereafter, the Insurance Company is entitled to recover the said amount from the owner of the vehicle (respondent No.4) in the same proceedings without filing a separate suit.
Law Points
- Motor Accident Claims
- Compensation
- Driving License
- Pay and Recover
- Section 149(2) MV Act
- Section 173(1) MV Act
