IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
SATYEN VAIDYA, J.
United India Insurance Company Ltd. - Appellant
Versus
Jai Devi & others – Respondents
FAO No.62 of 2017 a/w Cross objections No.39 & 45 of 2017
Decided On : 12-03-2025
(A) Motor Vehicles Act, 1988 - Section 166 - Compensation awarded for death in a motor vehicle accident involving a tractor - The Tribunal awarded Rs.22,61,000/-; however, the appeal modified the compensation to Rs.19,03,600/- with 9% interest from the date of filing. (Paras 1, 25)
(B) Liability of insurer - The deceased was found to be a third party despite claims of being a gratuitous passenger, hence the insurer is liable to indemnify. (Paras 19)
(C) Assessment of income - The Tribunal's assessment of the deceased's income was modified based on established legal principles regarding future prospects and dependency. (Paras 21-24)
Facts of the case:
The appeal was filed by the insurer against the Tribunal's award, following a fatal accident involving the deceased who was engaged as a labourer. The claimants alleged negligence on part of the driver. (Paras 1-6)
Findings of Court:
The Tribunal's findings regarding the deceased's engagement as a labourer were upheld, but the income assessment was modified. Total compensation was recalculated to Rs.19,03,600/-. (Paras 25)
Issues: The main issues included the determination of the deceased's status as a passenger, the assessment of income, and liability of the insurer. (Paras 9)
Ratio Decidendi: The court held that the deceased was a third party and entitled to compensation, emphasizing the need for credible evidence in establishing claims of income. (Paras 19, 21-24)
Result: The appeal is partially allowed, and the compensation is modified to Rs.19,03,600/-.
JUDGMENT :
(Satyen Vaidya, J.)
The instant appeal has been filed by the insurer to assail award dated 21.07.2016 passed by learned Motor Accident Claims Tribunal-II, Solan in Claim Petition No.35-S/2 of 2013 whereby an amount of Rs.22,61,000/- with interest at the rate of 9% per annum from the date of filing of the petition has been awarded in favour of the claimants (respondents No.1 and 4 herein)
2. The claimants and owners have also filed their cross objections assailing the impugned award.
3. Both the appeal and cross objections are being considered and decided by a common judgement.
4. The claimants filed Claim Petition under Section 166 of the Motor Vehicles Act before the learned Tribunal seeking compensation on account of death of Shri Sita Ram in a motor vehicle accident involving Tractor No. HP-16-1259. It was alleged that on 03.09.2013 deceased Sita Ram was engaged as a labourer by respondents No.5 and 6 herein (hereinafter referred to as “owners”) and in pursuance thereof he was deputed to load and unload the tractor trolley being driven by respondent No.7 (hereinafter referred to as the “driver”). It was also averred that at about 10.00 PM, the Tractor No.HP-16-1259 being driven by driver reached at village Pajopar, Tehsil Pachhad, District Sirmour, H.P. The deceased was also the occupant of the tractor. The driver was driving the tractor rashly and negligently, as a result of which the tractor had fallen in a drain, causing the deceased to fell down from the tractor and suffer multiple bodily injuries resulting in his death.
5. The claimants claimed the income of deceased at Rs. 9000/- per month from such avocation of labour. In addition, the deceased was alleged to be earning Rs.4,000/- from agriculture and additional Rs.3,000/- per month from selling milk. In this manner, the total income of deceased was claimed at Rs.16,000/- per month.
6. Indisputably, claimant No.1 is the wife, claimants No.2 and 3 are children and claimant No.4 is the mother of the deceased. The age of the deceased at the time of death was 30 years. All the claimants were said to be totally dependent upon the deceased for livelihood.
7. Owners and driver filed their joint reply and disclosed the factum of Tractor No.HP-16-1259 having been insured by the appellant herein (hereinafter referred to as the “insurer”) comprehensively for the period 03.08.2013 to 12.08.2014. The averments with respect to deceased earning Rs.16,000/- per month were specifically denied. The allegation of deceased having been engaged for loading and unloading of material was also denied. It was stated that the driver was driving the tractor in a slow speed. The road was narrow at the place of accident. The deceased was standing on the left side of the road, which was sloppy. The deceased appeared to be drunk. When the trolley of the tractor was crossing the deceased, he all of a sudden lost balance and fell down, as a result of which he struck against the rear portion of the trolley and suffered injuries. In this manner, the allegations of rashness and negligence on the part of the driver have also been denied. The driver also alleged to be possessing a valid and effective driving license issued by R&LA, Rajgarh, District Sirmaur, H.P.
8 The insurer in its reply raised the objection that the driver was not possessing a valid and effective driving license at the time of accident. Even the validity of registration certificate of Tractor No.HP-16-1259 was questioned. The deceased was alleged to be a gratuitous passenger. The insurer denied that the deceased was occupying the tractor at the time of accident as a labourer engaged to unload the material.
9. Learned Tribunal framed the following issues on 4.3.2015:
“1 Whether deceased Sita Ram died in a motor vehicle accident having taken place on 3.9.2013, at about 10:00 p.m. at village Pajopar, District Sirmour, H.P, on account of rash and negligent driving of tractor bearing No.HP-16-1259 by respondent Ramesh, as alleged? OPP.
2 If
The deceased was a third party in a motor vehicle accident, thus the insurer is liable for compensation despite claims of him being a gratuitous passenger.
An insurance company is not liable for compensation if a deceased is an unauthorized passenger in a vehicle with limited seating capacity.
The court determined that a coolie loading or unloading goods from a tractor is considered an authorized passenger under the Motor Vehicles Act, establishing insurer liability for accidents involving....
The court emphasized the principle of just compensation under the Motor Vehicles Act, mandating that insurance companies remain liable even if the policy is in the name of a deceased owner, provided ....
Point of Law : In absence of salary certificate, the minimum wage notification can be a yardstick but at the same time cannot be an absolute one to fix the income of the deceased. In absence of docum....
The Insurance Company is liable for compensation if it cannot prove the driver lacked a valid license at the time of the accident.
The court upheld the compensation awarded to claimants, affirming the deceased's status as a goods owner and assessing income based on evidence rather than minimum wage standards.
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