Case Note & Summary
The appellants, original claimants, filed a first appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 20.03.2018 passed by the Motor Accident Claims Tribunal (Auxi), Aravalli at Modasa in MACP No.619 of 2015. The claim petition was filed under Section 163A of the Motor Vehicles Act seeking compensation for the death of a person in a motor vehicle accident. The Tribunal, while awarding compensation, assessed 50% negligence on the part of the deceased motorcyclist and deducted that percentage from the total compensation. The appellants contended that in proceedings under Section 163A, which is a no-fault liability provision, the claimant is not required to plead or establish negligence, and the Tribunal cannot apportion negligence or deduct compensation on that basis. They relied on the Supreme Court decision in United India Insurance Company v. Sunil Kumar, (2014) 1 SCC 580. The respondent insurance company opposed the appeal. The High Court, after hearing both sides, held that the Tribunal erred in apportioning negligence and deducting 50% compensation in a claim under Section 163A. The court clarified that Section 163A provides for a no-fault liability regime where compensation is determined based on the structured formula in Schedule II, and the concept of contributory negligence is not applicable. Accordingly, the court allowed the appeal, set aside the Tribunal's award to the extent of the negligence deduction, and directed the insurance company to pay the full compensation as per the structured formula without any deduction for negligence.
Headnote
A) Motor Vehicles Act - No-Fault Liability - Section 163A - Negligence Apportionment - In a claim under Section 163A, the claimant is not required to prove negligence, and the Tribunal cannot apportion negligence or deduct compensation on that basis - The provision is a no-fault liability regime where compensation is determined as per the structured formula in Schedule II - Held that the Tribunal's deduction of 50% on account of contributory negligence was erroneous and set aside (Paras 3-5).
Issue of Consideration
Whether the Motor Accident Claims Tribunal can apportion negligence and deduct compensation in a claim filed under Section 163A of the Motor Vehicles Act, 1988, which is a no-fault liability provision.
Final Decision
The appeal is allowed. The judgment and award dated 20.03.2018 passed by the Motor Accident Claims Tribunal (Auxi), Aravalli at Modasa in MACP No.619 of 2015 is set aside to the extent of the deduction of 50% on account of contributory negligence. The respondent insurance company is directed to pay the full compensation as per the structured formula under Section 163A without any deduction for negligence.
Law Points
- Section 163A Motor Vehicles Act
- 1988
- No-fault liability
- Negligence apportionment impermissible
- Structured formula compensation
- Future prospects not applicable under Section 163A
