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2014 Supreme(Kar) 882

IN THE HIGH COURT OF KARNATAKA AT BANGALORE
K.L. Manjunath and Ravi V. Malimath, JJ.
New India Assurance Co. Ltd. - Appellants
Vs.
Velumurugan V. - Respondent
Miscellaneous First Appeal No. 10724/2013 (MV-D)
Decided On : 24.11.2014

Advocates Appeared:
For the Appellant : R. Jaiprakash, Adv.
For the Respondents: M.V. Murthy, Adv.

Headnote:MOTOR VEHICLES ACT, 1988 - Sections 147, 14(2)(a): [K.L. Manjunath & Ravi Malimath, JJ] Liability of insurer - Plea that offending vehicle was registered as petrol tanker (i.e. Heavy Goods Vehicle) and for driving such vehicle special endorsement is required - At time of accident, petrol tanker was empty - Held, Since it was not carrying any hazardous or combustible material at time of accident, no endorsement is required by driver to drive such vehicle as provided in Section 14(2)(a) of Act. Insurer of offending vehicle is liable to pay compensation.

       MOTOR VEHICLES ACT, 1988 - Section 168: [K.L. Manjunath & Ravi Malimath, JJ] Determination of compensation - Deceased, an M. Com. Graduate and also possessed degree in library science - Aged about 30 years - getting salary of Rs.8,000/- p.m. - Annual Income of deceased taken at Rs.72,000/- p.m. - As claimant being mother of deceased and was 52 years of age, multiplier of 11 applied - By adding compensation on other heads, claimant total compensation was reduced to Rs.9,92,000/- as against Rs.16,77,000/- awarded by tribunal with 9% p.a. interest.

Judgement Key Points

Key Points: - The insurer's liability is upheld where the tanker was empty and not carrying hazardous material, so no special endorsement is required to drive an empty tanker (Section 14(2)(a) analysis). (!) (!) (!) (!) (!) - For loss of dependency, the Court determines income at Rs. 12,000 per month as future prospects, rejects 1/3 deduction for personal expenses for a mother claimant, and applies a multiplier of 11 based on the mother's age, arriving at Rs. 7,92,000 for loss of dependency. (!) (!) - The total compensation is Rs. 9,92,000 with 9% interest from the date of petition, and 50% of the total compensation is to be deposited in a Nationalised Bank for five years with periodical interest; amount in deposit to be transferred to the Tribunal for payment. (!) (!)

What is the liability of the insurer where the offending vehicle is registered as a petrol tanker but was empty at the time of the accident?

What is the appropriate multiplier and deduction for future prospects and personal expenses in computing compensation where the claimant is the mother of the deceased?

What is the appropriate quantum of compensation and whether any portion should be deposited/secured for a period?


JUDGMENT

K.L. Manjunath, J.

1. The Insurance Company has filed this appeal aggrieved by the Judgment and Award passed by the MACT., Bangalore on 14.8.2013 in MVC No. 6424/2011.

2. Heard the learned Counsel for the parties.

3. The appellant-Insurance Company has filed this appeal questioning the liability saddling on it and also to reduce the quantum of compensation granted by the Tribunal.

4. The admitted facts are that the petitioner/second respondent is the mother of one Nagarjuna, who died in the road traffic accident that occurred on 25.7.2011 at about 3.50 p.m. He was aged about 30 years. The accident occurred due to rash and negligent driving of the driver of the tanker bearing registration No. KA-40 7499 which dashed against the motor cycle. He was immediately shifted to Command Hospital, where he was declared dead. He was aged about 30 years and working as Office Administrator at Radical Net Works, Frazer Town, Bangalore and drawing a salary of Rs. 8,000/- per month. He was a M.Com., graduate. In addition to that he was also a graduate in Library Science. The Insurance Company contended that since the lorry driver did not possess the special endorsement required for transportation of hazardous goods, the liability cannot be fastened on it and also contended that the claim made by the claimant is on the excessive side.

5. The Tribunal considering the evidence let-in by the parties came to the conclusion that when the accident occurred, the tanker was not carrying on any hazardous or combustible materials. Since it was an empty tank even the person who have travelling in heavy goods vehicle (HGV) could have driven the vehicle, accordingly fastened the liability on the Insurance Company. The Tribunal considering the income of the deceased at Rs. 8,000/- per month, considering his age, added 50% of his income towards future prospectus, thereafter deducting 1/3rd towards his personal expenses and applying the multiplier applicable to the age of the deceased and not the age of his mother and awarded a total compensation of Rs. 16,77,000/-. Therefore, the present appeal is filed.

6. Mr. R. Jaiprakash, learned Counsel for the appellant-Insurance Company contends that even though when the accident occurred, the tanker did not possess or carrying on any hazardous or combustible material since it is registered as a petrol tanker, the special endorsement was required to be made in the driving licence. In the absence of the same, the Tribunal has committed an error in fixing the liability. He further contends that deducting 1/3rd towards the personal expenses of the deceased and applying the multiplier of 17 is an error committed by the Tribunal. On these grounds, he requests the Court to allow the appeal.

7. Per contra, Sri G.V. Murthy, learned Counsel for the claimant submits that since the tanker was not carrying on any hazardous or combustible material since the driver had valid driving licence to drive HGV, the liability fastened by the Tribunal is truthful and appeal has to be dismissed.

8. So far as the quantum of compensation awarded by the Tribunal is concerned, he requests the Court to reconsider the evidence and award the same in accordance with law.

9. Having heard the learned Counsel for the parties, we have to consider the following points:-

"(1) Whether the liability saddled on the appellant-Insurance Company by the Tribunal required to be interfered with?

(2) Whether the compensation awarded by the Tribunal is liable to be interfered with?"

10. So far as point No. 1 is concerned, the appellant is not disputing the driver possessing a valid licence to drive a HGV. The contention of the appellant is that since the vehicle in question is registered as petrol tanker, special endorsement was required to be obtained by the driver to drive a petrol tanker. Admittedly, when the accident occurred, it was an empty tank. In the cross-examination of RW. 1, he has admitted as hereunder:-

"When the accident occurred, there was no petroleum pro











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