Case Note & Summary
The present appeal was filed under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award of the Motor Accident Claims Tribunal, Beed, which directed the appellant and the driver to pay compensation of Rs.2,73,500/- to the claimants for the death of Gorakh Sadhu Denge in a road accident. The deceased died while traveling in a trolley attached to a tractor owned by the appellant, which was driven by the driver at the time of the accident. The claimants, who were the deceased's family members, sought compensation under Section 166 of the Motor Vehicles Act. The Tribunal found that the tractor was insured but exonerated the insurance company from liability, ruling that the trolley was unauthorizedly used for carrying passengers. The Tribunal assessed the deceased's notional income at Rs.3,000/- per month and applied a multiplier of 11, resulting in a compensation amount that included conventional heads. The appellant contended that the deceased became a third party after falling from the trolley, thus making the insurance company liable. The insurance company argued that the deceased was traveling in a goods vehicle, which was not covered under the policy. The court analyzed various precedents and concluded that the insurance company was not liable as the deceased was not traveling for loading or unloading goods. However, the court found the compensation awarded inadequate and increased it significantly for loss of consortium and funeral expenses, directing the appellant and driver to pay an additional amount to the claimants. The appeal was ultimately dismissed, and the parties were directed to bear their own costs.
Headnote
A) Motor Vehicles Act - Insurance Liability - Exoneration of Insurance Company - Motor Vehicles Act, 1988, Section 147 - The insurance company was exonerated from liability as the deceased was unauthorizedly traveling in a trolley attached to a tractor, which was not covered under the insurance policy. The court held that the deceased was not a passenger but merely traveling to reach a destination, thus the claim was not covered (Paras 24-24). B) Compensation - Assessment of Compensation - Motor Vehicles Act, 1988, Section 173 - The court found the compensation awarded by the Tribunal inadequate and increased it significantly for loss of consortium and funeral expenses. The court directed additional compensation to be paid to the claimants (Paras 25-27).
Issue of Consideration
Whether the insurance company is liable to pay compensation for the death of the deceased who fell from a trolley attached to a tractor.
Final Decision
The appeal was dismissed. The court directed the appellant and driver to pay additional compensation of Rs.1,80,500/- to the claimants over and above the amount awarded by the Tribunal, without interest.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- compensation
- insurance liability
- third party claim
- notional income
- conventional heads
