The main legal point established in the judgment is the application of the principle of pay and recovery, and the adjustment of the compensation amount based on legal principles established by the Hon’ble Apex Court.

JUDGMENT :

B.V.L.N. CHAKRAVARTHI, J.

1. Challenging the order dated 23.11.2010 passed in M.V.O.P.No. 73/2010 on the file of the Motor Accidents Claims Tribunal-II Addl.District Judge, Madanapalle, the claimants filed the appeal.

2. The appellants/claimants filed claim petition before the learned Tribunal U/s.140 and 166 of Motor Vehicles Act, 1988 claiming compensation of Rs.4,00,000/- for the death of Manda Yerraiah, alleging that on 15.08.2008 the deceased Manda Yerraiah and Manda Sumithra and others were travelling in auto bearing No. AP03X 3335 from Sodam towards Somala, the driver of said auto drove it in a rash and negligent manner and he lost control over the auto and due to which, the auto turned turtle and the inmates of auto fell down and sustained injuries.

It is further contended that due to the accident, the deceased sustained severe injuries and died. The age of the deceased was 42 years at the time of accident. He was working as security guard in J.S.Towers, Venkatapuram Alval, Hyderabad and used to earn Rs.5,000/- per month and managing his family and the petitioners are dependants on the income of deceased. The 1st respondent was owner of crime auto and the 2nd respondent is insurer of the said vehicle.

3. Before the learned Tribunal, the 2nd respondent/Insurance Company filed written statement, while traversing the material averments with regard to manner of accident, rash and negligence on the part of the driver of the crime vehicle, nature of injuries, age and avocation of the deceased, liability to pay compensation, and contended that there was no rashness or negligence on the part of driver of auto No. AP 03X 3335. The driver of auto was holding driving licence to drive auto rickshaw non-transport only and the vehicle involved in the accident is a goods carrying commercial vehicle and driver should possess a transport endorsement in his licence, hence, the 1st respondent violated the terms and conditions of the insurance policy and therefore, he is not liable to pay compensation.

It is further contended that the auto No. AP 03X 3335 was registered under commercial vehicle goods carrying and its seating capacity is only one i.e., driver, but at the time of accident, it is found that the crime auto carrying 14 persons which is against the rules under M.V.Act. The 1st respondent did not pay premium to cover the risk of the passengers and hence, insurer is not liable to pay any compensation to the petitioners. The claim of the petitioners is highly excessive, exorbitant and without proportion to the loss sustained.

4. The 1st respondent, who is owner of the crime vehicle remained exparte.

5. On the strength of the pleadings of both parties, the Tribunal framed the following issues:

1. Whether the accident occurred due to rash and negligent driving of three wheeler auto bearing No. AP 03X 3335 involved resulting in the death of deceased by name Manda Yerraiah?

2. Whether the petitioners are entitled for compensation? If so, by whom and to what amount?

3. To what relief?

6. To substantiate their claim, the claimants examined P.W-1 and got marked Exs.A-1 to A-5. The 2nd respondent/Insurance Company examined R.W-1 and got marked Ex.B-1.

7. The learned Tribunal, taking into consideration the evidence of P.W-1, coupled with Exs.A-1 to A-5, held on issue No. 1 that the accident took place due to rash and negligent driving of driver of auto bearing No. AP-03X-3335, and further held on issue No. 2 that claimants are entitled for compensation and awarded total compensation of Rs.3,43,000/- with interest @ 9% p.a. from the date of petition, till the date of deposit with proportionate costs against the 1st respondent, by dismissing the claim against the 2nd respondent/Insurance Company.

8. The details of the compensation amount awarded by the learned Tribunal under various heads discussed above are as under: