Case Note & Summary
The case arises from a motor accident that occurred on 16.01.2003, when a Matador bearing registration No.GJ-1TT-9663, in which the deceased Manishbhai was travelling, collided with a truck driven by the original opponent No.1. The truck was allegedly driven on the wrong side at excessive speed, causing the accident. The deceased sustained grievous injuries and succumbed to them during treatment. The parents of the deceased filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, before the Motor Accident Claims Tribunal, Ahmedabad, seeking compensation. The Tribunal partly allowed the petition and awarded Rs.13,76,000/- with 9% interest per annum, holding the appellant Insurance Company (insurer of the truck) liable to pay the entire amount, while exonerating the insurer of the Matador. The appellant Insurance Company challenged the award, primarily arguing that the Tribunal failed to consider contributory negligence on the part of the Matador driver. The High Court examined the evidence, including the panchnama of the scene of accident, which showed that the truck had come on the wrong side but also that the Matador driver had ample space to avoid the collision. The court concluded that both drivers were equally negligent, as the Matador driver did not take sufficient care. Consequently, the court held that the appellant Insurance Company was liable only for 50% of the compensation, i.e., Rs.6,88,000/-, with interest. The appeal was partly allowed, and the award was modified accordingly.
Headnote
A) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - Motor Vehicles Act, 1988, Sections 166, 168 - The court considered whether the driver of the Matador was also negligent, as the accident occurred when the truck came on the wrong side but the Matador driver failed to take evasive action. The court held that both drivers were equally negligent, and the insurer of the Matador was liable to pay 50% of the compensation, while the appellant insurer of the truck was liable for the remaining 50%. (Paras 5-7) B) Motor Accident Claims - Compensation - Reduction of Award - Motor Vehicles Act, 1988, Section 168 - The court reduced the compensation amount from Rs.13,76,000/- to Rs.6,88,000/- payable by the appellant, after finding contributory negligence. The interest rate of 9% per annum was maintained. (Para 8)
Issue of Consideration
Whether the learned Tribunal erred in holding the appellant Insurance Company liable to pay the entire compensation without considering contributory negligence on the part of the driver of the Matador in which the deceased was travelling.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified to the extent that the appellant Insurance Company is liable to pay 50% of the awarded amount, i.e., Rs.6,88,000/- with interest at 9% per annum from the date of filing of the claim petition till realization. The remaining 50% shall be paid by the insurer of the Matador. The award is modified accordingly.
Law Points
- Contributory negligence
- Motor accident compensation
- Liability of insurer
- Apportionment of negligence




