Back
IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
Bajaj Allianz General Insurance Co. Ltd. – Appellant
Versus
Smt. Lilam Debi Sah @ Shah & Ors. – Respondents
FMA 885 of 2023, (FMAT 719 of 2017) with CAN 2 of 2017 (Old No. CAN 7105 of 2017)
Decided On : 29-07-2024
Motor Vehicles - Compensation - Section 163A, Motor Vehicles Act, 1988 - The court interpreted Section 163A to determine compensation for the death of a victim in a vehicular accident, emphasizing the structured formula for calculating loss of dependency and the applicability of the new schedule post-amendment.
Fact of the Case:
The deceased, a 21-year-old green grocer, died in a vehicular accident caused by negligent driving. The claimants sought compensation under the Motor Vehicles Act, 1988, but the insurance company contested liability, arguing the deceased was a gratuitous passenger.
Finding of the Court:
The court found that the deceased was indeed a gratuitous passenger and upheld the tribunal's decision to award compensation based on the structured formula under Section 163A, despite the insurance company's claims of non-liability.
Issues: Whether the insurance company is liable to pay compensation under Section 163A of the Motor Vehicles Act, considering the deceased was a gratuitous passenger.
Ratio Decidendi: The court held that the insurance company is liable to compensate the claimants as per the structured formula under Section 163A, despite the deceased's status as a gratuitous passenger.
Result: The appeal was dismissed, and the insurance company was ordered to pay the enhanced compensation of Rs. 5,00,000 along with interest.
JUDGMENT :
(Shampa Dutt (Paul), J.) :
1. The present appeal by the Insurance Company/Appellant has been preferred against the award dated 17th June, 2016 passed by Ld. Judge, Motor Accident Claim Tribunal, 2nd Fast Track Court, Jalpaiguri, in M.A.C. Case No. 212 of 2008, under section 163A of the Motor Vehicle Act, 1988.
2. FACTS :-
Over such accident, Mal P.S. Case No. 614/08 dt. 17.05.08 u/s 279/337/338/304A was started against the drivers of the offending vehicles.”
3. The O.P. No.1/Owner did not appear in the case and as such the case proceeded ex parte against O.P. No. 1.
4. The O.P. No.2, 3 and 4 were served with notice and appeared and also filed their Written Statement in order to contest the case.
5. The O.P.’s/Owners have denied to bear any responsibility for paying the compensation as claimed by the petitioners and submitted further that, since the vehicle concerned was properly insured, the entire liability for compensation is on the Insurance Company. It has been categorically submitted that the alleged accident took place due to laches on the part of the deceased himself and that the drivers of the offending vehicles had no negligence towards the said accident.
6. It has further been contended that the drivers of the offending vehicles were not holding valid and effective Driving License at the time of the accident and were not qualified for holding or obtaining such Driving License on the date of the alleged accident and as such, the claimants are not entitled to get any compensation.
7. The claimants examined two witnesses and proved relevant documents which were marked Ext. 1 to 4.
8. The Insurance Company did not adduce any evidence.
9. The Tribunal finally held as follows :-
| “M.A.C. Case No. 212 of 2008
Dated: 17th June, 2016
This court fixes notional income of Rs. 3,000/- as the income of the deceased. For the purpose of determining the multiplier in case of death of bachelor, I am being guided by directions contained in the judgments of Hon’ble Court wherein the age of the mother of the deceased is considered in case of death of bachelor for the multiplier. The age of the mother of the deceased has already been determined as below 40 years as aforesaid as on the date of accident. In view of the aforesaid discussion the age of the mother of the deceased is considered in case of death of bachelor, the appropriate multiplier applicable is 16. Hence, the total loss of dependency comes out to (Rs. 3,000/- X 16 X 12) X 1/2 =Rs. 2,88,000/- and the petitioner is further entitled to get funeral expenses as Rs. 2,000/- loss of estate as Rs. 2,500/- and loss of love and affection to the extent of Rs. 7,500/-. The deceased was green grocer by profession and died at the age of 21 years. He had a good future prospect and the young man did unfortunately due to the sudden accident due to no fault on his part. Thus considering the future prospect of the deceased this tribunal is inclined to award a future sum of Rs. 40,000/-towards future prospect. That apart, the record reveals that the instant case was filed in the year 2008 and it takes another 8 years for its disposal. |
The amendment to Section 163A of the Motor Vehicles Act allows for enhanced compensation for claims pending as of the amendment date, reflecting the law's intent to benefit claimants.
The court established that claimants are entitled to compensation under Section 163A of the Motor Vehicles Act based on the structured formula, irrespective of the insurance company's policy limitati....
The court affirmed that compensation under Section 163A is payable regardless of the vehicle's permit status, emphasizing the structured formula for calculating compensation.
Insurance companies may be required to pay compensation even if the deceased was an unauthorized passenger, with the right to recover from the vehicle owner, reflecting the benevolent intent of the M....
Compensation under Section 163A of the M.V. Act does not require proof of negligence, and structured compensation formulas must be applied to ensure fair awards to claimants.
Claimants under the Motor Vehicles Act can opt to convert claims from Section 163A to Section 166 for comprehensive compensation assessments, reflecting the law's flexibility in addressing victims' n....
The amendment to Section 163A of the Motor Vehicles Act applies to pending claims, ensuring claimants receive the benefits of the new compensation schedule.
The amendment to Section 163A of the Motor Vehicles Act, 1988, applies to pending claims, allowing claimants to receive enhanced compensation based on the new structured formula.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
