HIGH COURT OF CHHATTISGARH AT BILASPUR
Radhakishan Agrawal, J.
The Oriental Insurance Company Limited - Appellant
Vs.
Smt. Heera Sahu, Wd/o Late Chhabi Alias Chhabluram Sahu - Respondent
MAC No. 662 of 2015 and MAC No. 1607 of 2019
Decided On : 02-01-2025
(A) Motor Vehicles Act, 1988 - Sections 163-A and 166 - Claims for compensation arising from a vehicular accident - The Tribunal awarded compensation of Rs.6,01,400/- to the claimants and Rs.79,513/- to the injured claimant, with interest rates of 9% and 7.5% respectively - The Insurance Company contested the liability, arguing the driver's lack of a valid license and the gratuitous passenger status of the injured claimant - The court upheld the Tribunal's findings, citing the Supreme Court's ruling in Mukund Dewangan v. Oriental Insurance Co. Ltd. regarding license validity for light motor vehicles. (Paras 4, 10, 12, 17)
(B) Future Prospects - The court modified the Tribunal's award regarding future prospects, determining that a 25% increase was appropriate for the deceased's income, rather than the 30% initially granted. (Paras 12, 13)
Facts of the case:
The appeals arose from a 2011 accident involving a Mahindra Pick-Up, resulting in the death of Chhabi @ Chhabluram Sahu and injuries to Dwarika Prasad Sahu. The Insurance Company appealed against the compensation awarded by the Tribunal.
Findings of Court:
The court found the Tribunal's decision to fasten liability on the Insurance Company justified, and modified the compensation amount to Rs.5,82,500/- with interest.
Issues: The main issues included the validity of the driver's license and the applicability of insurance coverage for the injured claimant.
Ratio Decidendi: The court ruled that the driver was competent to operate the vehicle without a specific endorsement on his license, and the injured claimant was covered under the insurance policy.
Result: Appeals allowed in part; compensation modified.
Judgment :
(Radhakishan Agrawal, J.)
1. Since both the above appeals filed by the Insurance Company arise out of same accident that took place on 12.07.2011, they are being heard together and disposed of by this common judgment.
2. As per averments made in the claim petitions, on 12.07.2011, deceased-Chhabi @ Chhabluram Sahu and injured-Dwarika Prasad Sahu were travelling in the Mahindra Pick-Up bearing registration No.CG04-JB-1592 (hereinafter called as 'offending vehicle') and when they reached near village Chandi, the said offending vehicle turned turtle due to rash and negligent driving by its driver/non-applicant No.1 Girdhari Lal Sahu, as a result of which, deceased- Chhabi @ Chhabluram Sahu sustained grievous injuries over his body and died, whereas injured-Dwarika Prasad sustained multiple injuries over his body. At the time of accident, the offending vehicle was owned by non- applicant No.2 Kawaljeet Singh and was insured with non-applicant No.3 – the Oriental Insurance Company Limited.
3. On account of death of deceased- Chhabi @ Chhabluram Sahu, a claim petition was filed by the claimants (MAC No.662/2015) under Section 163-A of the Motor Vehicles Act seeking compensation to the tune of Rs.7,10,000/- under various heads, inter alia pleading that at the time of accident, deceased- Chhabi @ Chhabluram Sahu was aged about 35 years and was earning Rs.40,000/- per year by working as Conductor, whereas on account of injuries sustained by the claimant- Dwarika Prasad Sahu (MAC No.1607/2019) in the said accident, he filed a claim petition under Section 166 of the Motor Vehicles Act seeking compensation to the tune of Rs.14,00,000/- under various heads, inter alia pleading that at the time of accident, claimant- Dwarika Prasad Sahu was aged about 44 years and was earning Rs.200/- per day by working as Cleaner. However, the learned 6th Additional Motor Accident Claims Tribunal, Raipur, C.G. in Claim Case No.126/2012 (MAC No.662/2015) vide award dated 26.02.2015, assessed and awarded the compensation of Rs.6,01,400/- to the claimants with interest at the rate of 9% per annum from the date of application till its realization and fastened liability upon the non-applicant No.3/Insurance Company. Likewise, the learned 4th Additional Motor Accident Claims Tribunal, Raipur to the Court of 1st Additional Motor Accident Claims Tribunal, Raipur C.G. in Claim Case No.566/2015 (MAC No.1607/2019) vide award dated 14.05.2019, assessed and awarded the compensation of Rs.79,513/- to the claimant-Dwarika Prasad Sahu with interest at the rate of 7.5% per annum from the date of application till its realization and fastened liability upon the non-applicant No.3/Insurance Company. Against the said awards, Insurance Company is before this Court by filing appeals separately.
4. Learned counsel for the appellant/Insurance Company in MAC No.662/2015 submits that the Tribunal was not justified in fastening the liability on the Insurance Company because at the time of accident, the Driver of the offending vehicle/non-applicant No.1 was not having a valid and effective licence since the vehicle was a transport vehicle whereas the driver of offending vehicle was holding MCWG & LMV for non- transport vehicle and there was no endorsement on the licence authorizing the driver to drive the transport vehicle. He further submits that claimants have filed claim petition under Section 163-A of the Motor Vehicles Act, therefore, claimants are not entitled for grant of any amount towards future prospects and the Tribunal has erred in granting 30% towards future prospects. He also submits that the amount awarded by the Tribunal towards conventional heads is also excessive, which needs to be reduced suitably. In MAC No.1607/2019, learned counsel for the Insurance Company submits that although at the time of accident, offending vehicle was insured with the appellant/Insurance Company, but injured-Dwarika Prasad Sahu was travelling in the offending vehicle as a gratuitous
The court upheld the Tribunal's liability determination, affirming that a driver with a valid LMV license can operate a transport vehicle under 7500 kg without an endorsement, and modified future pro....
The court ruled that the Insurance Company is liable to pay compensation first, despite the driver's invalid license, and established guidelines for calculating future prospects and multipliers in co....
The court affirmed the validity of the driver's license and ruled that the Insurance Company failed to prove negligence, thus holding it liable for compensation.
A valid light motor vehicle license includes transport vehicles, and insurers cannot deny liability without proving negligence by the vehicle owner.
A driver with a light motor vehicle license can operate a transport vehicle under 7500 kg, and future prospects for compensation should be calculated at 25% for self-employed individuals.
The court established that intoxication and improper positioning on the vehicle breached insurance policy conditions, affirming liability on the driver-owner and recalculating compensation based on f....
Insurance company is not liable for compensation when driver lacks valid endorsement for hazardous goods transport, reversing Claims Tribunal's decision.
A learner's license does not preclude insurance liability if the driver is accompanied by a licensed instructor, and the insurer must prove policy violations to avoid liability.
The main legal point established in the judgment is the interpretation of the Motor Vehicles Act provisions related to driving licenses and the liability of insurance companies in road accident claim....
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