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P. VELMURUGAN, K. K. RAMAKRISHNAN
National Insurance Company, Third Party Hub, represented by is Senior Divisional Manager, Madurai – Appellant
Versus
Amutha – Respondent
JUDGMENT :
(Order of the Court was made by P.VELMURUGAN,J)
The Civil Miscellaneous Appeal is directed against the award passed in M.C.O.P.No.1155 of 2021, dated 27.11.2023, on the file of Motor Accidents Claims Tribunal, Special District Court, Madurai.
2. Heard the learned counsel appearing on either side and perused the materials placed before this Court.
3. The appellant is the Insurance Company and the second respondent in M.C.O.,P.No.1155 of 2021. The above M.C.O.P was taken with other M.C.O.Ps filed by the other claimants and a common judgment was pronounced on 27.11.2023. Aggrieved over the same, the second respondent therein filed the present Civil Miscellaneous Appeal.
4. The brief facts of the case of the respondents 1 to 6/claimants is that the deceased was riding a motor cycle bearing Registration No. TN 65 U 4712 and when he was nearing S.P.Kottai, driver of the 7th respondent vehicle came from the opposite direction by riding a two wheeler bearing Registration No. TN 67 BJ 3659 in a rash and negligent manner and dashed against the deceased vehicle. In both the two wheeler, there were pillion riders and due to the accident, in both two wheelers, the riders and pillion rider
The insurer is liable to pay compensation for an accident caused by an insured vehicle, even if the driver lacked a valid license, with the right to recover from the vehicle owner.
The court affirmed the principle that compensation under the Motor Vehicles Act must be just and fair, emphasizing the need to consider future prospects and proper income tax deductions.
The court emphasized that income tax returns cannot be rejected solely due to being filed posthumously; the average income must be considered for fair compensation calculation.
The court adjusted the compensation for death in a motor accident, emphasizing proper income calculations and dependency, aligning with established legal principles.
The main legal point established in the judgment is the reduction of compensation for the death of the driver to the extent of 25% of the total award due to the driver's contributory negligence.
Compensation for vehicular accidents must be just and reasonable, focusing on equitable loss recovery, while applying correct legal principles without succumbing to strict technicalities.
Income tax must be deducted from the deceased's income when calculating compensation under the Motor Vehicles Act.
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