Case Note & Summary
The appeal was filed by the Insurance Company (Bajaj Allianz General Insurance Co. Ltd.) challenging the judgment and award dated 15.10.2010 passed by the Motor Accident Claims Tribunal, Chintamani, in MVC No.19/2007. The Tribunal had awarded a compensation of Rs.63,000/- with interest at 8% p.a. to the minor claimant (Shoukath, aged about 12 years at the time of accident), who was a pillion rider on a motorcycle. The accident occurred due to collision between the motorcycle and an auto-rickshaw. The Tribunal found both drivers equally negligent but did not apportion the liability between the insurers. The Insurance Company contended that the Tribunal erred in not considering the contributory negligence of the motorcycle rider and in not apportioning liability. The High Court, after hearing the parties, held that the Tribunal's finding of equal negligence was correct, but the liability should be apportioned. Accordingly, the High Court allowed the appeal in part, reducing the Insurance Company's liability to 50% of the awarded amount, i.e., Rs.31,500/- with interest, and directed the claimant to recover the remaining amount from the insurer of the motorcycle.
Headnote
A) Motor Accident Claims - Contributory Negligence - Apportionment of Liability - Motor Vehicles Act, 1988, Section 166 - Minor pillion rider sustained injuries in collision between motorcycle and auto-rickshaw - Tribunal held both drivers equally negligent but did not apportion liability - High Court held that the insurer of the auto-rickshaw is liable only to the extent of 50% of the compensation, as the motorcycle rider was also negligent - Appeal allowed in part (Paras 1-8).
Issue of Consideration
Whether the Tribunal erred in not considering the contributory negligence of the motorcycle rider and in awarding compensation without apportioning liability.
Final Decision
Appeal allowed in part. The compensation awarded by the Tribunal is reduced to 50% i.e., Rs.31,500/- with interest at 8% p.a. from the date of petition till deposit. The claimant is entitled to recover the remaining amount from the insurer of the motorcycle.
Law Points
- Contributory negligence
- Motor accident compensation
- Liability of insurer
- Negligence of rider
- Apportionment of liability
Case Details
2016 LawText (KAR) (10) 13
Bajaj Allianz General Insurance Co. Ltd.
Shoukath (minor) represented by natural guardian mother Smt. Parveen Taj and Syed (owner of auto-rickshaw)
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Nature of Litigation
Appeal against judgment and award of Motor Accident Claims Tribunal awarding compensation for injuries sustained in a road accident.
Remedy Sought
Insurance company sought reduction of compensation on ground of contributory negligence and non-apportionment of liability.
Filing Reason
Insurance company challenged the Tribunal's award on the ground that the Tribunal failed to consider contributory negligence of the motorcycle rider and did not apportion liability between the insurers.
Previous Decisions
Tribunal awarded Rs.63,000/- with interest at 8% p.a. in MVC No.19/2007.
Issues
Whether the Tribunal erred in not considering the contributory negligence of the motorcycle rider?
Whether the liability should be apportioned between the insurers of the two vehicles?
Submissions/Arguments
Appellant (Insurance Company) argued that the Tribunal failed to consider the contributory negligence of the motorcycle rider and did not apportion liability.
Respondent (claimant) supported the Tribunal's award.
Ratio Decidendi
Where both drivers are equally negligent, the liability of each insurer is limited to 50% of the compensation awarded, and the claimant must recover the remaining amount from the other insurer.
Judgment Excerpts
This appeal is by the Insurance company challenging the Judgment and Order passed by the Motor Accident Claims Tribunal, Chintamani, [‘Tribunal’, for short] in MVC No.19/2007.
The Tribunal has recorded a finding that both the drivers were equally negligent. However, the Tribunal has not apportioned the liability.
In the result, the appeal is allowed in part. The compensation awarded by the Tribunal is reduced to 50% i.e., Rs.31,500/- with interest at 8% p.a. from the date of petition till deposit.
Procedural History
The claimant filed MVC No.19/2007 before the Senior Civil Judge & JMFC, MACT, Chintamani, which awarded compensation on 15.10.2010. The Insurance Company appealed under Section 173(1) of the Motor Vehicles Act, 1988 before the High Court of Karnataka.
Acts & Sections
- Motor Vehicles Act, 1988: Section 173(1)
