Case Note & Summary
The appeal was filed by the National Insurance Company Ltd. against the judgment and award dated 21.08.2017 passed by the Motor Accident Claims Tribunal (Special) & 9th Additional District Judge at Rajkot in M.A.C.P. No. 786 of 2005. The Tribunal had partly allowed the claim petition and awarded Rs.8,90,200/- with 9% interest per annum to the claimants (legal heirs of deceased Hemiben). The accident occurred on 22.05.2005 when the deceased was travelling in a utility jeep (GJ-3Y-7147). The jeep stopped near village Kuchiyadad to pick up a passenger, and at that time, a Maruti car (GJ-1-AR-5785) driven by opponent No.1 at excessive speed and in a rash and negligent manner dashed into the jeep, causing fatal injuries to the deceased. The claimants, being the husband and children of the deceased, filed the claim petition seeking compensation. The Insurance Company contended that the accident occurred due to the negligence of the jeep driver as well, as the jeep had stopped abruptly on the highway without any indicator, and that the compensation awarded was excessive. The court framed issues regarding contributory negligence, quantum of compensation, and interest rate. On contributory negligence, the court held that the jeep driver was also negligent in stopping the vehicle on the highway to pick up a passenger, which contributed to the accident, and therefore apportioned 20% contributory negligence on the part of the deceased. On quantum, the court noted that the deceased was a labourer earning Rs.3,500/- per month, but no documentary evidence was produced. Hence, the court assessed notional income at Rs.3,000/- per month, applied multiplier of 15, deducted 1/3rd towards personal expenses, and added 40% towards future prospects, resulting in loss of dependency of Rs.5,04,000/-. Adding Rs.70,000/- under conventional heads, total compensation was computed at Rs.5,74,000/-. After deducting 20% contributory negligence, the Insurance Company was liable to pay Rs.4,59,200/-. The court also reduced the interest rate from 9% to 7.5% per annum. The appeal was partly allowed, modifying the award accordingly.
Headnote
A) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - Deceased was a passenger in a jeep that stopped on the highway to pick up a passenger, contributing to the accident - Held that the Tribunal ought to have apportioned 20% contributory negligence on the part of the deceased as the jeep driver was also negligent in stopping abruptly on the highway (Paras 5-7). B) Motor Accident Claims - Quantum of Compensation - Income Assessment - Deceased was a labourer earning Rs.3,500/- per month, but no documentary evidence was produced - Held that in the absence of proof, notional income of Rs.3,000/- per month is appropriate, and compensation recalculated accordingly (Paras 8-10). C) Motor Accident Claims - Interest Rate - Reduction - Tribunal awarded 9% interest per annum - Held that considering prevailing bank rates, interest at 7.5% per annum is just and proper (Para 11).
Issue of Consideration
Whether the learned Tribunal erred in not considering the contributory negligence of the deceased and in awarding excessive compensation without proper evidence of income.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The total compensation is reduced to Rs.4,59,200/- (after deducting 20% contributory negligence) with interest at 7.5% per annum from the date of filing of the claim petition till realization. The Insurance Company is directed to deposit the modified amount within eight weeks. The award is modified accordingly.
Law Points
- Contributory negligence
- Apportionment of liability
- Motor accident compensation
- Section 166 Motor Vehicles Act
- 1988
