Case Note & Summary
The case involves multiple appeals arising out of a motor accident that occurred on 18.10.2008. The appellant, New India Assurance Co. Ltd., challenged the award of compensation in MVC No. 75/2004 and MVC No. 84/2004 passed by the Motor Accident Claims Tribunal, Chinthamani. The Tribunal had awarded Rs. 9,20,000/- and Rs. 4,50,000/- respectively with interest at 6% p.a. The accident involved a car driven by Sri. Rohith @ Rohith Mankotia, which hit a pedestrian, resulting in the death of one person and injuries to another. The claimants, being the legal representatives of the deceased and the injured, filed petitions under Section 166 of the Motor Vehicles Act, 1988. The Insurance Company contended that the driver did not have a valid driving licence and that the compensation awarded was excessive. The High Court, after hearing the parties, reduced the compensation by applying a notional income of Rs. 3,000/- per month and deducting 50% towards personal expenses. The Court also held that the deceased was contributory negligent to the extent of 50%. Regarding the liability of the Insurance Company, the Court held that since the driver did not possess a valid driving licence, the Insurance Company is not liable, but directed it to pay the compensation and recover the same from the owner of the vehicle. The appeals were partly allowed.
Headnote
A) Motor Accident Claims - Quantum of Compensation - Proof of Income - The claimants failed to produce any documentary evidence regarding the income of the deceased. The Tribunal assessed the income at Rs. 4,500/- per month without any basis. Held that in the absence of proof, the income should be taken as Rs. 3,000/- per month as per the notional income for accident cases. (Paras 10-12) B) Motor Accident Claims - Contributory Negligence - The accident occurred due to the negligence of both the driver of the car and the deceased pedestrian. The deceased was crossing the road without observing traffic rules. Held that contributory negligence of the deceased should be assessed at 50%. (Paras 13-15) C) Motor Accident Claims - Liability of Insurance Company - The driver of the offending vehicle did not possess a valid driving licence at the time of the accident. The Insurance Company is not liable to pay compensation as there is a breach of policy conditions. However, the Insurance Company is directed to pay the compensation and recover the same from the owner of the vehicle. (Paras 16-18)
Issue of Consideration
Whether the Tribunal erred in awarding compensation without proper proof of income and without considering contributory negligence of the deceased; and whether the Insurance Company is liable to pay compensation when the driver did not possess a valid driving licence.
Final Decision
The appeals are partly allowed. The compensation awarded by the Tribunal is reduced. The Insurance Company is directed to pay the compensation and recover the same from the owner of the vehicle.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Section 166
- Section 147
- Section 149
- contributory negligence
- quantum of compensation
- proof of income
- multiplier method
- future prospects
- no fault liability
