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2025 Supreme(HP) 1613

IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA
SATYEN VAIDYA, J.
Future Generali India Insurance Company Ltd. - Appellant
Versus
Smt. Subhadra Devi And Ors. -  Respondents
FAO No. 338 of 2019 along with FAO Nos. 339 of 2019, 340 of 2019, FAO No. 387 of 2019.
Decided On : 25-11-2025

Advocates Appeared:
For the Appellant :Mr. Chandan Goel, Advocate.
For the Respondent:Mr. Subhash Mohan Snehi, Ms.Niranjana, Advocates, Mr. Raj Kumar Negi, Advocate, Anup Kumar (owner of the vehicle)

Insurer must prove unlicensed driver or gratuitous passengers in goods vehicle claims; upheld on evidence; compensation adjusted with future prospects, dependency deductions by dependency status, Rs.40,000 consortium per dependent.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166, 168 and 173 - Goods carriage vehicle accident resulting in death of five occupants - Claimants (legal representatives of four deceased) alleged hiring vehicle for goods carriage - Insurer contended gratuitous passengers, driver without valid licence - Tribunal allowed claims holding driver employed with valid licence verified by owner, deceased not gratuitous - High Court upheld on evidence discrediting FIR version changed by informant, owner testimony, no proof of negative facts by insurer - Quantum assessed notionally, adding 25-40% future prospects, deductions 1/4th (married with children), 1/3rd (bachelor parents), multiplier 14-18 per age, consortium Rs.40,000/- each dependent per Supreme Court precedents, estate/funeral Rs.15,000/- each. (Paras 13-26, 28-46)

(B) Burden of proof - Insurer to prove policy violations like unlicensed driver (negative fact), failed where owner averred verification, no comprehensive records produced. (Paras 24-25)

(C) Compensation computation - Notional income reasonable for unproven self-employed/self-earning deceased; bachelor deduction 50% (parents), adjustments per precedents; interest 9% from petition date. (Paras 28-46)

Facts of the case:
Goods carrier vehicle plunged into river killing driver and four passengers alleged hired for goods transport after store purchases. Legal representatives filed separate claims alleging rash negligent driving. Insurer denied liability pleading gratuitous passengers, unlicensed driver per FIR (later discredited), policy breach.

Findings of Court:
Awards modified upwards for consortium to all dependents: Rs.14,50,000/- (45 years dhaba owner), Rs.5,63,600/- (17 years unemployed bachelor), Rs.14,94,060/- (36 years dhaba), Rs.20,44,400/- (25 years taxi driver), 9% interest from petition, apportioned as directed.

Issues: Whether vehicle driven by employed licensed driver or unlicensed passenger; deceased passengers gratuitous or goods owners; quantum excessive.

Ratio Decidendi: Tribunal findings on driver identity (owner/witness testimony over inconsistent FIR) and non-gratuitous status (undiscredited store owner evidence) unassailable; insurer disproved on licence lacking records/evidence; quantum refined per binding precedents on prospects, deductions, consortium without perversity.

Result: Appeals disposed, impugned awards modified as above.

Table of Content
1. fatal accident prompted multiple compensation claims (Para 1 , 2 , 3 , 4 , 5)
2. insurer contested gratuitous passengers and invalid licence (Para 6 , 7 , 8 , 9 , 10 , 11)
3. lucky held as driver preferring testimony over fir (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
4. owner's interim payment confirms driver's employment (Para 22 , 23)
5. insurer failed to discharge burden on licence absence (Para 24 , 25)
6. deceased classified as goods hirers not gratuitous (Para 26)
7. awards modified per pranay sethi and magma rulings (Para 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46)
8. appeals disposed with revised compensation amounts (Para 47 , 48 , 49)

JUDGMENT :

Satyen Vaidya, Judge

All these appeals were heard together and are being disposed of by a common judgment as common questions of facts and law arise.

2. Vehicle bearing No. HP-35-2744 (Bolero Camper) had met with an accident on 03.03.2015 while enroute from Jagatkhana to Village Chotu. The said vehicle had gone off the road and had plunged into river Satluj. At the time of accident, vehicle was occupied by five persons, namely Jai Ram, Rajesh, Tara Chand, Sat Pal and Lucky. All of them had died as a result of injuries suffered in the accident.

3. The incident of FIR was reported to the police vide FIR No. 16 of 2015 dated 03.03.2015 registered at Police Station Brow, District Kullu, H.P.

4. The Legal representatives of deceased Jai Ram, Rajesh, Tara Chand and Sat Pal had filed separate claim petitions for grant of compensation under Section 166 of the Motor Vehicles Act. All the claim petitions were decided by the learned Motor Accidents Claims Tribunal-II, Kinnaur at Rampur Bushahar, H.P.

5. Claim Petition No. 97 of 2015, titled as Smt. Subhadra Devi & Ors. vs. Anup & Anr., was filed by the legal representatives of deceased Jai Ram. FAO No. 338 of 2019 has arisen from the award dated 24.04.2019 passed in Claim Petition No. 97 of 2015.

5.1 Claim Petition No. 98 of 2015, titled as Tikkma Devi & Anr. vs. Anup and Anr., was filed by the legal representatives of deceased Rajesh. FAO No. 339 of 2019 has arisen from the award dated 24.04.2019 passed in Claim Petition No. 98 of 2019.

5.2 Claim Petition No. 99 of 2015, titled as Smt. Durga Devi & Ors. vs. Anup & Anr., was filed by the legal representatives of deceased Tara Chand. FAO No. 340 of 2019 has arisen from the award dated 24.04.2019 passed in Claim Petition No. 99 of 2015.

5.3 Another claim petition No. 100 of 2015, titled as Smt. Vijay Laxmi vs. Anup & Anr., was filed by the legal representatives of deceased Sat Pal. FAO No. 387 of 2019 has arisen from the award dated 24.04.2019 passed in Claim Petition No. 100 of 2015.

6. Claimants in all the above noted claim petitions had alleged that deceased Jai Ram, Rajesh, Tara Chand and Sat Pal were travelling in the vehicle after hiring it for carriage of goods. It was averred that the vehicle at the time of accident was being driven by Lucky.

6.1 Separate claims were submitted, based on the respective occupation, income and age of the deceased persons.

7. In replies filed to the claim petitions by the owner of the vehicle Anup Kumar, it was admitted that deceased Lucky s/o Mahender Pal was driver of the vehicle. The owner had checked his driving licence before employing him as driver and after satisfying himself deceased Lucky was engaged to drive the vehicle No. HP-35-2744. It was also averred that the driving licence of deceased Lucky was misplaced as a result of accident. The owner further disclosed that the vehicle was comprehensively insured with the appellant/insurer at the time of accident. Contents of para-24 of the petition, wherein the factum of hiring the vehicle by the deceased was mentioned, had been denied by the owner.

8. The appellant insurer vide its separate reply had raised objections as to the violations of terms and conditions of the policy of insurance. It was alleged that deceased persons were




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