IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Syed Bashir-ud-Din, J.
National Insurance Co. Ltd. - Appellant
Versus
Gh. Mohd. Wani & Ors. - Respondent
CIA No. 101/2002
Decided On : 30 August, 2003
Compensation - Motor Vehicle Accident - Section 163-A of the Motor Vehicle Act - [Section 163-A] - The court assessed the compensation for a fatal accident in accordance with the structured formula provided in the Motor Vehicle Act. The court also discussed the liability of the insurer and the owner of the insured vehicle in respect of paying compensation to a third party, highlighting the conditions enumerated in the policy and the right of the insurer to recover from the insured in case of a breach of policy conditions.
Fact of the Case:
The MACT awarded compensation to the claimant parents of a deceased in a motor vehicle accident. The appellant, National Insurance Co., challenged the award, arguing that it was on the higher side and that the owner and driver of the vehicle should be liable to pay the award amount.
Finding of the Court:
The court found that the MACT correctly assessed the compensation in accordance with the structured formula provided in the Motor Vehicle Act. The court also discussed the liability of the insurer and the owner of the insured vehicle in paying compensation to a third party.
Issues: The issues included the assessment of compensation, liability of the insurer and the owner of the insured vehicle, and the validity of the driving license in relation to the claimants' entitlement to compensation.
Ratio Decidendi: The court's decision was based on the correct assessment of compensation in accordance with the structured formula provided in the Motor Vehicle Act and the liability of the insurer and the owner of the insured vehicle as per the policy conditions.
Final Decision: The appeal was dismissed with modifications to the quantum of compensation and the liability of the owner to pay the amount to the insurer-appellant Company.
till realization. This award is impugned in this appeal by National Insurance Co.
2. The counsel for the appellant Insurance Co. has made two fold submission. First that the award is on higher side and second that the owner and driver of the vehicle are to be saddled with liability to pay the award amount as the driver (respondent no. 1) is found by the Tribunal driving the offending vehicle on the material date without driving licence. Counsel for the claimant in reply has defended the award on the ground that the compensation has been awarded in terms of law as assessed on evidence on record. It is conceded that driver respondent no. 1 is without a valid license. But even so the counsel contends that this amount is to be paid by the Insurance Co. and the amount can be recovered by the Insurance Company from the owner (Respondent No.2).
3. It is not in dispute that the Sheeraz Ahmed Wani who died as a result of fatal injuries sustained by him in the Vehicular accident in question when respondent no. 1 was on the steering was of 22 years age, the claimants are his father and mother and the rash/negligent driving is the cause of accident. The vehicle so far as 3rd party is concerned was duly covered by Insurance cover and the policy on the material date is also admitted. The impugned judgment is perused.
4. Ld. Counsel for the parties do agree that on evidence recorded and appreciated deceased™s per month income is assessed at Rs. 3000/- and after applying recknor of 15 and deducing l/3rd as personal expenses of the deceased the compensation is assessed at Rs. 3,60,000/- (2000x 12x 15). The MACT has specifically referred while arriving at the figure of compensation to schedule-II read with Section 163-A of the Motor Vehicle Act. The provision provides that in case of death due to accident arising out of Motor Vehicle compensation as indicated in the IInd schedule shall be paid to the legal heirs of the deceased by the owner of the vehicle. This 2nd schedule structured formula in assessing the compensation provides in a case like the present one a multiplier of 17 after the annual income is treated as Rs. 36,000/-. The figure arrived at is to be reduced by 1/3rd for consideration of the expenses which the victim may have incurred to maintain himself had he been alive. Seen thus on appreciation of evidence the MACT has correctly assessed the compensation and awarded Rs. 3,60,000/- as the compensation for the fatal accident in question. However, the Ld. Counsel for the appellant has taken an exception to award of Rs. 10,000/- as funeral expenses and Rs. 10,000/- for loss of love and affection and Rs.20,000/- on expectation of life. Added thus is Rs. 40,000/- to the above awarded compensation.
5. The counsel is right in submitting that the general damages which are payable in addition to the above compensation under head funeral expenses as given by the structured formula is Rs. 2000/- and other expenses as applicable to the facts and circumstances of this case are not provided by the schedule. The counsel is not denying this legal preposition as applicable to this case but goes on to contend that the claimants are entitled to this amount in addition to the compensation awarded. Even if the contention of counsel is taken at face value then there has to be some evidence to show that the general damages awarded on account of loss and affection an on account of expectation of life has actually occasioned. This is not the case here. No evidence is available on either count. It cannot be ipsi dixit of MACT even given the fact that Schedule-II serves as guide notwithstanding the mistakes which may be detected in calculation of the income and figure arrived at in the schedule. T
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