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2025 Supreme(Kar) 2678

IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
S.G.PANDIT, GEETHA K.B., JJ.
The Legal Claim Manager IFFCO-TOKIO, General Insurance Co. Ltd. – Appellant
Versus
Laxmavva W/o Guddappa Haveri – Respondent
Miscellaneous First Appeal No. 100858, 103047 of 2022
Decided On : 19-11-2025

Advocates Appeared:
For the Appellant : Subhash J. Baddi
For the Respondents: Nagaraj J. Appannavar, Prutvi K.S.

The court affirmed the validity of awarding compensation under the Motor Vehicles Act, adjusting income and future prospects, while rejecting insurer's claims of contributory negligence and liability defenses.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Accidental death - Compensation claims - The claimants, parents and sisters of the deceased, appealed for enhancement of the compensation awarded by the Tribunal. The insurer contended the award was excessive, citing contributory negligence of the deceased. (Paras 1-9)

(B) Compensation calculation - The Tribunal initially awarded Rs.22,30,000/-; however, upon appeal and analysis, the court modified the award to Rs.22,37,800/-, affirming the calculation but reducing interest to 6% per annum. (Paras 24-25)

(C) Contributory negligence - While the insurer claimed the deceased's lack of a driving license constituted negligence, the court found no contributory negligence as the accident was not caused by the deceased. (Paras 19-22)

(D) Future prospects - The court ruled that a 40% addition to the income for future prospects was justified owing to the deceased’s status as a bachelor with dependents. (Paras 15) (E) Parental consortium - The Tribunal's compensation for loss of love and affection was deemed excessive; adjustments were made based on established legal precedents. (Paras 16) (F) Final decision - The appeal was partly allowed, adjusting compensation with a modified interest rate. (Paras 24-25)

Facts of the case:
The deceased Sridhar, aged 22, was involved in a road traffic accident while riding a motorcycle, resulting in his death. He was employed and earning a salary, with the claimants seeking compensation for loss incurred. The accident was contested on grounds of alleged negligence regarding the deceased’s driving status. (Paras 3-9)

Findings of Court:
The Tribunal's initial judgment was modified; the deceased's income assessment was affirmed, personal expenses deducted altered, and additional compensation for loss of parental consortium was granted, amounting to Rs.22,37,800/- with interest at 6%. (Paras 24-25)

Issues: 1) Correct monthly income assessment; 2) Entitlement to future prospects; 3) Modified compensation; 4) Insurer liability; 5) Contributory negligence. (Paras 13)

Ratio Decidendi: The court reiterated the importance of factual determination and upheld established legal principles regarding future prospects and dependency, addressing insurer defenses concerning policy compliance effectively, stating that an absence of fitness certificate does not relieve insurer liability. (Paras 20-22)

Result: Appeals allowed in part; total compensation adjusted to Rs.22,37,800/- with 6% interest.

JUDGMENT :

GEETHA K.B., J.

1. The insurer and claimants are in appeal questioning the judgment and award dated 29.10.2021 in M.V.C. No.1001/2017 on the file of Senior Civil Judge and J.M.F.C. Byadagi (for short’ Tribunal’). The claimants are in appeal not being satisfied with the quantum of compensation awarded whereas the insurer is in appeal contending that the compensation awarded by the tribunal is on higher side and also challenges the liability of the insurer.

2. Parties would be referred with their ranks, as they were before the Tribunal.

3. The claimants being the parents and unmarried sisters of deceased Sridhar have filed the claim petition under Section 166 of the Motor Vehicles Act, 1988 (for short ‘the Act’) claiming compensation for the accidental death of son of claimant Nos.1 and 2 in a road traffic accident that had taken place on 15.03.2017 at about 17.30 hours near Karekatte on Yerekuppi-Saravand road involving the Tata Ace vehicle bearing registration No.KA-27/A-4016 and motorcycle bearing registration No.KA-27/EJ-2362. It is stated in the claim petition that the deceased has completed II PUC and ITI in Electrician course. At the time of accident, he was aged about 22 years, working at Kudremukh Iron and Ore Company Limited at Ranebennur and Mangaluru and he was getting salary of Rs.15,000/- per month. The deceased was very talented and skilled technician in his job and was having bright future in his avocation. Hence, prayed for compensation.

4. On receipt of notice, first respondent-owner of the Tata Ace appeared through his counsel and filed his detailed objection wherein he denied the entire averments made in the petition and further contended that his vehicle was validly insured with second respondent as on the date of accident and policy was in force and hence second respondent is liable to pay compensation to petitioners, if the Court comes to the conclusion that the respondents are liable to pay compensation. He further contended that the accident happened due to rash and negligent riding of motorcycle by deceased Sridhar and not due to the driving of driver of Tata Ace vehicle. Hence, prayed for dismissal of the petition.

5. Second respondent-insurer appeared through its counsel and filed its objection statement, wherein it denied the entire averments made in the petition and further contended that the driver of Tata Ace has willfully driven the said vehicle and was not having valid and effective driving license to drive the Light Goods vehicle as on the date of accident. Hence, without knowing the driving and without obtaining license from the licensing authority he has driven the vehicle. Hence, violated the provisions of the Act. Hence respondent-insurance Company is not liable to pay compensation. It further took contention that the rider and owner of two wheeler bearing registration No.KA-27/EJ- 2362 are not made as parties to the petition and thus the claim petition is not maintainable for non-joinder of necessary parties. Hence prayed for dismissal of the petition.

6. On behalf of claimants, first claimant was examined as PW1, apart from marking Exs.P.1 to P.43 and closed their side before the Tribunal. On behalf of respondents, respondents examined RW.1 and RW.2 apart from marking Exs.R.1 to R.8 and closed their side before the Tribunal.

7. After recording evidence of both sides and hearing arguments of both sides, the Tribunal came to the conclusion that petitioners are entitled for compensation of Rs.22,30,000/- with interest at 9% per annum under following different heads:-

1.Love and Affection2,00,000/-
2.Loss of dependency20,16,000/-
3.Funeral, obsequies and transportation expenses14,000/-
Total22,30,000/-

8. While awarding the aforesaid compensation, the Tribunal held that the monthly income of deceased at Rs.14,000/-, applied the relevant multiplier - 18 and deducted the 1/3 of his income towards his personal expenses.

9. Aggrieved by the said judgment and award of the Tribunal, the insurer as w

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