Case Note & Summary
The case arises from a motor accident claim under Section 163-A of the Motor Vehicles Act, 1988. The appellants, being the legal heirs of the deceased Neelaben Dilipbhai alias Dilyabhai Gamit, filed a claim petition seeking compensation of Rs.4,00,000/-. The accident occurred on 12.02.2009 at about 9:30 pm when the deceased was alighting from a Swaraj Mazada tempo (goods vehicle) bearing registration no.GJ-15-Z-1148, and the driver suddenly started the tempo, causing her to fall and sustain fatal head injuries. The deceased was aged about 33 years and worked as a labourer in a Sugar Factory, earning Rs.3,000/- per month. The Motor Accident Claims Tribunal partly allowed the claim and awarded Rs.2,49,500/- with 9% interest, but exonerated the insurance company from liability on the ground that the deceased was not travelling in a goods vehicle at the time of accident. Aggrieved by the exoneration, the appellants filed the present appeal. The legal issue was whether the insurance company could be exonerated under Section 163-A on the ground that the deceased was a passenger in a goods vehicle. The appellants argued that Section 163-A imposes no-fault liability on the insurer, and the nature of the vehicle or the status of the occupant is irrelevant. The insurance company contended that the deceased was an unauthorized passenger in a goods vehicle, and thus the insurer is not liable. The Court, after hearing the parties, held that Section 163-A provides for a no-fault liability, and the insurer is liable to pay compensation irrespective of the nature of the vehicle or the status of the occupant. The Court set aside the Tribunal's order exonerating the insurance company and directed the insurer to pay the awarded compensation to the appellants. The appeal was allowed.
Headnote
A) Motor Vehicles Act - Section 163-A - No-Fault Liability - Insurance Company Liability - The issue was whether the insurance company could be exonerated from paying compensation under Section 163-A of the Motor Vehicles Act, 1988 on the ground that the deceased was a passenger in a goods vehicle. The Court held that Section 163-A provides for a no-fault liability and the insurer is liable to pay compensation irrespective of the nature of the vehicle or the status of the occupant. The Tribunal's exoneration of the insurance company was set aside. (Paras 1-6) B) Motor Vehicles Act - Section 163-A - Goods Vehicle - Passenger - The Court considered the argument that the deceased was not travelling in a goods vehicle at the time of accident. The Court held that under Section 163-A, the liability of the insurance company is strict and does not depend on whether the deceased was a passenger in a goods vehicle. The insurer is liable to pay compensation as per the structured formula. (Paras 4-6)
Issue of Consideration
Whether the insurance company can be exonerated from liability under Section 163-A of the Motor Vehicles Act, 1988 on the ground that the deceased was travelling in a goods vehicle as a passenger at the time of the accident.
Final Decision
The appeal is allowed. The impugned judgment and award dated 10.06.2010 passed by the Motor Accident Claims Tribunal (Main), Navsari in MACP No.97/2009 is set aside to the extent of exoneration of the insurance company. The insurance company is directed to pay the awarded compensation of Rs.2,49,500/- with interest at 9% per annum to the appellants.
Law Points
- Liability of insurance company under Section 163-A of the Motor Vehicles Act
- 1988 is no-fault liability
- not dependent on the nature of the vehicle or the status of the occupant
- Insurance company cannot be exonerated on the ground that the deceased was a passenger in a goods vehicle under Section 163-A
- The principle of strict liability applies to claims under Section 163-A
- The insurer is liable to pay compensation even if the vehicle was a goods vehicle and the deceased was a passenger
