Case Note & Summary
The appellant, Nizambhai Vallibhai Dosani, filed a first appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 12.04.2016 passed by the Motor Accident Claims Tribunal (Auxiliary), City Civil & Sessions Court, Ahmedabad in MACP No.70/2005. The Tribunal had partly allowed the claim petition and awarded Rs.1,84,200/- with 9% interest, but exonerated the insurance company of the metador (respondent no.3) from liability. The accident occurred on 30.12.2003 when the appellant was driving a Swaraj Mazda Metador (GJ-1-UU-4440) and a tanker (GJ-13-T-7611) driven rashly by respondent no.4 dashed against it, causing grievous fracture injuries to the appellant. FIR No.106/2003 was lodged. The appellant was a driver earning Rs.4,000 per month. The claim petition was initially under Section 166 but later converted to Section 163-A of the MV Act. The insurance company of the metador filed a written statement denying liability. The Tribunal partly allowed the claim but exonerated the insurance company without reasons. The appellant appealed on quantum and exoneration grounds. The High Court heard arguments. The appellant's counsel argued that under Section 163-A, no negligence need be proved, and the insurance company cannot be exonerated. The court held that Section 163-A is a no-fault provision and the insurance company is liable to pay compensation as per the structured formula. The court enhanced the compensation to Rs.2,50,000/- with 9% interest from the date of petition, and directed the insurance company to pay the same. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Section 163-A Motor Vehicles Act, 1988 - No-Fault Liability - Structured Compensation - Claimant not required to prove negligence of driver of offending vehicle - Insurance company liable to pay compensation as per structured formula under Second Schedule - Exoneration of insurance company by Tribunal without reason is unsustainable (Paras 1-8). B) Motor Accident Claims - Quantum of Compensation - Permanent Disability - Loss of Earning Capacity - Claimant sustained grievous injuries including fracture - Tribunal awarded Rs.1,84,200/- - High Court enhanced compensation to Rs.2,50,000/- considering disability and loss of income - Interest at 9% per annum from date of petition till realization (Paras 7-8).
Issue of Consideration
Whether the claimant is entitled to enhanced compensation under Section 163-A of the Motor Vehicles Act, 1988 and whether the insurance company of the offending vehicle can be exonerated from liability under the no-fault regime.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The appellant is entitled to total compensation of Rs.2,50,000/- with interest at 9% per annum from the date of filing of claim petition till realization. The insurance company (respondent no.3) is directed to pay the compensation. The award is modified accordingly.
Law Points
- Section 163-A Motor Vehicles Act
- 1988 is a no-fault liability provision
- structured compensation formula
- insurance company cannot avoid liability on ground of no negligence
- claimant not required to prove negligence
- appeal against quantum maintainable
- interest rate 9% per annum
