IN THE HIGH COURT OF JUDICATURE AT MADRAS
J.NISHA BANU, R.SAKTHIVEL, J.
The Branch Manager, M/s. The New India Assurance Co. Ltd., - Appellant
Versus
Rajavel – Respondent
CMA NO.2274 OF 2022 AND CMP NO.17477 OF 2022
Decided on : 19-02-2025
JUDGMENT :
R. SAKTHIVEL, J.
1. Feeling aggrieved by the Award dated May 25, 2022 passed in M.C.O.P. No.139 of 2018 on the file of the ‘Motor Accidents Claims Tribunal (Chief Judicial Magistrate), Perambalur’ ['Tribunal' for short], the second respondent/Insurance Company has preferred this Civil Miscellaneous Appeal.
2. For the sake of convenience, the parties will henceforth be referred to as per their rank in the Motor Claim Original Petition.
Petitioner’s case :
3. The case of the petitioner is that on January 02, 2018 at about 12.15 hours, he was travelling as a cleaner in Mahindra Navistar Truck bearing Registration No.TN-18-J-0612 loaded with iron rods, on Trichy-Chennai Highway. While approaching Venganoor Bus-stop, the said Truck was driven by petitioner’s relative / first respondent, namely Rajavel in a rash and negligent manner and the front right side tyre of the said Truck suddenly burst. Consequently, first respondent lost control and the vehicle toppled upside down. In the accident, the petitioner’s left leg was crushed between iron rods. Immediately, he was admitted in the Government Hospital, Perambalur for first aid and then admitted in Atlas Hospital, Trichy, where his left leg below knee was removed. Even thereafter he continued treatment as in-patient in Thanjavur Government Medical College Hospital and a surgery was performed again in his left leg. The accident happened only due to the rash and negligent driving of the first respondent against whom a case was registered in Crime No.3/2018 under Sections 279 and 337 of Indian Penal Code, 1860 by the Ramanatham Police, Cuddalore. The petitioner was aged about 34 years at the time of accident and he was working as a load man in M.M.S. Fisheries on contract basis and earned Rs.1000/- per day i.e., Rs.30,000/- per month. Accordingly, he filed claim petition seeking Rs.1,00,00,000/- as compensation from the first respondent who is the owner cum driver of the Truck and the second respondent who is its insurer.
First respondent's case :
4. The first respondent remained absent and was set ex-parte before the Tribunal.
Second respondent’s case :
5. The 2nd respondent – Insurance Company filed counter denying the petition averments and stating that the petitioner was travelling as an unauthorized passenger and hence, second respondent is not liable to pay compensation to the petitioner. Accordingly, the second respondent prayed to dismiss the original petition.
Tribunal :
6. Before the Tribunal, in order to prove the petitioner’s case, the petitioner examined himself as P.W.1, one Rajaraman was examined as P.W.2 and Ex-P.1 to Ex-P.15 were marked. On the side of the respondents, one Tmt.Bama, attached to Regional Transport Office, Virudachalam was examined as R.W.1, and Ex-R.1 & Ex-R.2 were marked. The disability certificate issued by Medical Board attached with Government Hospital, Perambalur was marked as Ex-C.1.
7. The Tribunal after hearing both sides and considering the evidence available on record, came to the conclusion that the accident occurred due to the negligence on the part of 1st respondent. It was the duty of Driver as well as the owner of the vehicle to check the tyre quality and its air before journey, but they did not do so. Since the petitioner was travelling as an unauthorized passenger, the first respondent alone is liable to pay the compensation. However, as the first respondent’s vehicle was insured with the second respondent, the second respondent shall pay and recover the same from the 1st respondent. As regards quantum of compensation, the Tribunal held that the petitioner has failed to prove his income and accordingly, it took notional income at Rs.8,000/- per month. Adding 40% future prospects to it, applying the multiplier of 16, and considering functional disability at 80%, the Tribunal awarded Rs.17,20,320/- as compensation under the head ‘loss of income’ and also awarded compensation under various other heads as detailed hereunder:
| Sl.No. | Head | Amount |
The comprehensive motor insurance policy covers pillion riders, and compensation awarded must reflect just and reasonable estimates, including future medical needs.
The court established that the petitioner suffered 100% functional disability due to negligence in a vehicular accident, warranting enhanced compensation of Rs.35,42,058.
The liability of the insurer under a statutory policy is restricted to indemnify the insured in respect of claims made by third parties and the owner of goods or their authorized representatives who ....
The court clarified income assessment for compensation in a motor accident case by establishing the notional income based on job skills despite inconsistencies in income proof.
The court emphasized the need for accurate evidence in compensation claims, reducing excessive amounts awarded and confirming liability of the insurer based on negligence established through testimon....
Negligence must be proven for liability in motor vehicle accidents, and future earnings potential can be factored into compensation calculations.
Liability under motor vehicle insurance extends only to employees if additional premiums for coverage are paid as per relevant statutory provisions.
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