IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
V. Srishananda, J.
IFFCO-Tokyo General Insurance – Appellant
Versus
Sujata – Respondent
M.F.A. No. 22652 of 2012 C of W, 23257 of 2012 (MV), 22652 of 2012
Decided On : 27-08-2021
Motor Vehicle Act - Compensation - Sec. 166 - Sec. 166 of the Motor Vehicle Act, 1988 - The judgment discusses the application of Sec. 166 of the Motor Vehicle Act, 1988 in a case involving a road traffic accident and the assessment of compensation. The court considered the notional income of the deceased, loss of consortium, and other conventional heads in determining the compensation. The court also addressed the liability of the Insurance Company in relation to the driver's valid driving license.
Fact of the Case:
A claim petition was filed under Sec. 166 of the Motor Vehicle Act, 1988, seeking compensation for the death of Basavaraj in a road traffic accident involving an autorickshaw. The Tribunal awarded compensation, which was challenged by the Insurance Company and the claimants.
Finding of the Court:
The court dismissed the appeals, maintaining the compensation awarded by the Tribunal. It addressed the assessment of notional income, loss of consortium, and the liability of the Insurance Company in the case.
Issues: The issues involved whether the Insurance Company could shift the liability to the owner of the autorickshaw and whether the claimants were entitled to enhancement of compensation.
Ratio Decidendi: The court held that the Insurance Company was liable to pay compensation despite the driver not possessing a valid driving license. It also determined that the compensation awarded by the Tribunal was appropriate considering the notional income of the deceased and the loss of consortium.
Final Decision: The appeals filed by the Insurance Company and the claimants were dismissed, and the ordered amounts were to be deposited accordingly.
JUDGMENT :
1. Though these matters are listed for admission, with the consent of the parties, matters are taken up for final disposal.
2. Insurance Company and claimants are in appeal challenging the validity of the judgment and award dtd. 16/4/2012 passed in M.V.C.No.353/2010 by the District Judge & M.A.C.T., Gadag, (hereinafter referred to as 'the Tribunal', for short).
3. The brief facts, which are necessary for disposal of the appeals are as under: A claim petition came to be filed under Sec. 166 of the Motor Vehicle Act, 1988 contending that on 13/9/2010 at about 12.30 p.m., one Basavaraj S/o. Mahadevappa Tirlapur was coming from Hombal to Gadag in a passenger tum tum auto bearing No.KA-26/7605. When the said auto came near the land of Puttaraj Gavaigalu, Gadag, the driver of the auto lost control over the vehicle and the auto got toppled down. As a result, injured Basavaraj sustained grievous injuries. He was shifted to District Hospital, Gadag and thereafter to Life Line Hospital, Hubli wherein Basavaraj died on 16/9/2010. Therefore, the claimants being the dependents of the deceased Basavaraj, laid a claim petition seeking awarding suitable compensation.
4. The claim petition was resisted by the respondents by filing written statement denying the petition averments in toto.
5. The Tribunal raised necessary issues and after considering the oral and documentary evidence on record, allowed the claim petition in a sum of Rs.13,52,995.00 as compensation.
6. Being aggrieved by the same, insurance company and claimants are in appeals.
7. Sri S.K. Kayakmath, learned counsel appearing for the Insurance Company vehemently contended that the driver of the auto rickshaw did not possess a valid driving licence. He further contended that the compensation awarded by the Tribunal is on the higher side and sought for allowing the appeal of the Insurance Company.
8. Per contra, Sri Deepak Maganur, learned counsel for the claimants vehemently contended that the Tribunal ought to have taken into consideration the income of the deceased at Rs.12,000.00 and it took the income at Rs.10,000.00. He further contended that the Tribunal has not awarded any compensation under loss of consortium and filial affection and conventional heads and sought for enhancement of compensation.
9. In the appeal filed by the Insurance Company, Sri M.K. Soudagar, contended that in the absence of proper proof of income the Tribunal was required to take the income in a sum of Rs.5,500.00 for the accidental claim of the year 2010 whereas the Tribunal has taken Rs.10,000.00 and therefore, the claimants have not made out a case to enhance the compensation and sought for dismissal of the appeal of the claimants.
10. Miss. Chaitra M. Goundalkar, learned counsel appearing for Sri N.D. Gunde, learned counsel for owner of the autorickshaw supported the impugned judgment.
11. In view of the rival contentions of the parties, the following points would arise for consideration:
2) Whether the claimants have made out a case for enhancement of compensation?
12. In the case on hand, Basavaraj losing his life in a road traffic accident involving autorickshaw bearing No.KA26/7605 is established by placing necessary oral and documentary evidence on record.
13. The Tribunal after taking into consideration the RTC extracts produced at Exs.P-9 and P-10 and also certificate at Ex.P-11, assessed the notional income of the deceased in a sum of Rs.10,000.00. However there is no future income added by the Tribunal as per the judgment of the Hon'ble Apex Court in the case of National Insurance Company Limited Vs. Pranay Sethi and Others reported in (2017) 16 SCC 680. Further, the Tribunal did not order loss of consortium in a proper manner following the dictum of the Hon'ble Apex Court in the case of Mutteppa Nagappa Karegar vs. G.B. Attar and Ors. reported in ILR 2003(3) KAR 2877 (Justice Farooq)
The main legal point established in the judgment is the determination of compensation under Sec. 166 of the Motor Vehicle Act, 1988, considering factors such as notional income, loss of consortium, a....
The court established that the insurance company is liable under the doctrine of pay and recovery, enhancing compensation based on proper income assessment and applicable legal principles.
Insurance companies are liable for compensation if the vehicle is insured, even if the driver lacks a valid license, subject to pay and recover principle.
The principle of "pay and recovery" can be applied to gratuitous passengers in motor vehicle accident cases, where the claimant is not in a position to realize the difference from the owner of the ve....
Compensation calculations in wrongful death cases must recognize homemakers' economic contributions, applying appropriate multipliers, while insurance companies cannot evade liability based on unlice....
The central legal point established in the judgment is the insurance company's liability to indemnify the claimant and the right to recover the amount from the driver and owner of the vehicle involve....
The court established the principle of pay and recover, holding the insurance company liable to pay first and then recover from the insured.
The main legal point established in the judgment is the determination of compensation under Section 166 of the Motor Vehicles Act, including the assessment of the annual income of the deceased and th....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.