IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
BANDARU SYAMSUNDER, J.
The New India Assurance Company Ltd - Petitioner
Versus
Guna Geetha Mahalaxini - Respondent
M.A.C.M.A. No. 3402 of 2018
Decided On : 13-06-2023
Motor Vehicles Act - Compensation - 173 - 304-A, 338 IPC - M.V.O.P.No.44 of 2017 - Ex.A1 to Ex.A6, Ex.X1 to Ex.X3 - Smt. Sarla Verma and others, Appellants Vs. Delhi Transport Corporation & another, AIR 2009 SC 3104 - National Insurance Company Limited Vs. Pranay Sethi and others, 2017 ACJ 2700 - Bimla Devi and others, Appellants vs. Road Transport Corporation and others, Respondents in Civil Appeal No.2538 of 2009, Supreme Court, Judgment dated 15.04.2009 - Anita Sharma and others vs. The New India Assurance Co. Ltd., Civil Appeal Nos.4010-4011 of 2020, Judgment dated 08.12.2020
Fact of the Case:
The case involves a motor vehicle accident resulting in the death of the deceased. The petitioners, parents of the deceased, claimed compensation under the Motor Vehicles Act. The insurance company, the appellant, challenged the award passed by the Tribunal, arguing that the compensation amount was not just and reasonable.
Finding of the Court:
The court found that the accident occurred due to the rash and negligent driving of the first respondent. It also found that the compensation awarded by the Tribunal was not in accordance with the legal principles established by previous judgments. The court allowed the appeal in part, reducing the compensation amount awarded to the petitioners.
Issues: The issues included determining the cause of the accident, the entitlement of the petitioners to claim compensation, and the just and reasonable amount of compensation.
Ratio Decidendi: The court relied on the principles established in Smt. Sarla Verma and others, Appellants Vs. Delhi Transport Corporation & another, AIR 2009 SC 3104, National Insurance Company Limited Vs. Pranay Sethi and others, 2017 ACJ 2700, Bimla Devi and others, Appellants vs. Road Transport Corporation and others, Respondents in Civil Appeal No.2538 of 2009, Supreme Court, Judgment dated 15.04.2009, and Anita Sharma and others vs. The New India Assurance Co. Ltd., Civil Appeal Nos.4010-4011 of 2020, Judgment dated 08.12.2020 to assess the compensation under various heads such as loss of dependency, loss of consortium, loss of estate, funeral expenses, and contributory negligence.
Final Decision: The court allowed the appeal in part, reducing the compensation amount awarded to the petitioners from Rs.24,60,000/- to Rs.16,90,000/- with interest at 7.5% per annum. The appellant insurance company was directed to deposit the balance of the compensation amount before the Tribunal within two months from the date of the court's order.
JUDGMENT :
This Civil Miscellaneous Appeal is filed by the appellant/R3/insurance company under Section 173 of Motor Vehicles Act, 1988 (hereinafter referred to as M.V. Act) challenging the award passed by the Motor Accidents Claims Tribunal – cum – XII Additional District Judge, East Godavari District, at Pithapuram, in M.V.O.P.No.44 of 2017 dated 20.07.2018 wherein and whereby the Tribunal awarded compensation of Rs.24,60,000/- to the respondents 1 and 2/petitioners for the death of Kum.Guna Lakshmi Krishna Dharani(herein after referred to as ‘the deceased’) in a motor vehicle accident that occurred on 13.11.2016 at about 11.45 a.m.
2. The appellant/insurance company and respondents 1 and 2 hereinafter referred to as R3 and petitioners as arrayed before the Tribunal, for the sake of brevity and convenience.
3. The case of the petitioners before the Tribunal in brief is that they are parents of the deceased who died in motor vehicle accident that occurred on 13.11.2016 at 11.45 a.m., Atchempeta Center, Thimmapuram Police Station limits. It is the contention of the petitioners that on 13.11.2016 their son and daughter (deceased) went to their maternal grand-parents village, i.e. Vijayarayudupalem on motor cycle bearing No.AP 05 CP 9422. At that time, the deceased was pillion rider. The petitioners submit that when the deceased and her brother(rider of motor cycle) were proceeding on a motor cycle, when they reached Atchampeta Center, one tipper lorry bearing No.AP 05 TD 4448 driven by R1 in a rash and negligent manner at high speed came from Samarlakota side while proceeding towards Suryaraopeta, dashed against the motor cycle wherein the deceased was travelling along with her brother as a pillion rider, due to which, the deceased fell down, sustained multiple injuries and died on the spot. Basing on the report lodged by the first petitioner/mother of the deceased, the Station House Officer, Thimmapuram police station registered the case against R1 for the offences punishable under Sections 304-A and 338 IPC. The petitioners submit that the accident occurred due to rash and negligent driving of R1/driver of tipper and R2 is the owner of offending vehicle which insured with R3 insurance company and the policy was in force on the date of accident. They submit that the deceased was studying Teacher Training Course in V.V.S.College of Teacher Training and she was a meritorious student. But due to sudden demise of the deceased they sustained irreparable loss. They claimed compensation of Rs.25,00,000/- on various heads.
4. The third respondent-insurance company filed counter denying the manner in which the accident occurred, age and income of the deceased claimed by the petitioners prior to the accident. It is the contention of R3 that respondents 1 and 2 violated the conditions of the policy. They submit that accident occurred due to the negligent driving of rider of motor cycle who was not having driving licence. They pray to dismiss the petition.
5. Basing on the above pleadings, the Tribunal framed the following issues for trial:
2. Whether the petitioners are entitled to claim compensation? If so to what amount and from whom?
3. To what relief?
6. On behalf of the petitioners, P.Ws.1 to 3 were examined and Ex.A1 to Ex.A6 and Ex.X1 to Ex.X3 were marked. On behalf of R3, no oral evidence was adduced but Ex.B1 copy of policy was marked with consent.
7. After hearing both sides, the Tribunal awarded compensation of Rs.24,60,000/- with interest at 7.5% per annum from the date of petition till the date of realisation.
8. Aggrieved by the award passed by the Tribunal, R3-insurance company preferred the present appeal stating that the Tribunal failed to see that the deceased was studying XI Class and she secured seat in management quota, due to that she cannot be treated as a brill
National Insurance Company Limited Vs. Pranay Sethi and others
Smt. Sarla Verma Vs. Delhi Transport Corporation and another
The main legal point established in the judgment is the assessment of compensation under the Motor Vehicles Act, based on the principles of loss of dependency, loss of consortium, loss of estate, fun....
The insurer's liability to pay compensation to third parties in motor vehicle accident cases is not affected by the fact that the driver of the offending vehicle did not have a valid driving license,....
Court emphasized 'just compensation' principles, adjusting compensation for loss of dependency and conventional heads, thereby enhancing the award significantly to reflect adequate and fair remunerat....
The main legal point established in the judgment is the application of legal principles from relevant judgments to determine just and reasonable compensation in motor vehicle accident cases.
The main legal point established in the judgment is the re-assessment of notional income and enhancement of compensation under various heads to ensure just and reasonable compensation for the claiman....
The court established that contributory negligence must be proven, and compensation should be just and adequate, reflecting the actual loss suffered by the claimants.
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