IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ALKA SARIN, J.
New India Assurance Company Limited – Appellant
Versus
Pinki & Ors. – Respondents
F.A.O. No. 1176 of 2024
Decided On : 01-04-2024
Negligence - Motor Accident Claims - Motor Vehicle Act Sections - The court discussed the principles of negligence in motor vehicle accidents, the assessment of compensation based on income, and the applicability of minimum wage as a yardstick for determining just compensation.
Fact of the Case:
The case involves a fatal motorcycle accident caused by a tractor driven negligently, resulting in the death of a young man. The legal representatives filed a claim for compensation, which was awarded by the Tribunal, leading to an appeal by the Insurance Company.
Finding of the Court:
The court found that the arguments regarding contributory negligence and the assessment of income based on minimum wages were not substantiated, affirming the Tribunal's award of compensation based on the deceased's income and future prospects.
Issues: The main issues were whether the accident was due to the negligent driving of the tractor and the appropriate assessment of compensation considering the deceased's income and the terms of the insurance policy.
Ratio Decidendi: The court held that the assessment of compensation should not be limited to minimum wages and that the Tribunal's reliance on the Deputy Commissioner's rates was justified, as the minimum wage is merely a guideline.
Result: The appeal by the Insurance Company was dismissed, upholding the Tribunal's award of compensation.
JUDGMENT :
Mrs. Alka Sarin, J. :- CM-4693-2024
For the reasons mentioned in the application, the same is allowed. The delay of 70 days in refiling the appeal is condoned. CM stands disposed off.
FAO-1176-2024
1. The present appeal has been preferred by the Insurance Company aggrieved by the award dated 28.08.2023 passed by the Motor Accident Claims Tribunal, Karnal (hereinafter referred to as ‘Tribunal’.
2. The brief facts relevant to the present case are that on the night of 23.06.2020 a medical ruqa was received from the Police Post, Kalpana Chawla Govt. Medical College and Hospital, Karnal regarding the admission of Ajay son of Pappy and Parveen son of Prabhu, both residents of village Ganjo Garhi, due to the injuries received in a roadside accident. On 24.06.2020 ASI Parveen Kumar alongwith Constable Pawan Kumar reached the Police Post KCGMCH, Karnal and collected the medical ruqa. Parveen Kumar was opined to be fit make a statement. The complainant, Parveen Kumar, disclosed that on 23.06.2020 he and his cousin Ajay son of Pappy were going to village Ganjo Garhi on a motorcycle bearing registration No.HR-05-AB-6637 Bajaj CD 100, the rider of which was Ajay who was riding the motorcycle on the left side of the road at a moderate speed at about 7:00 PM. When they reached near Dera Buta Singh at Ranwar-Ganjo Garhi Road, a Tractor attached with a bull-cart (Buggi), which was being driven in a rash and negligent manner, came from the opposite side and hit the motorcycle. As a result of the accident, Ajay fell on the road and received multiple and grievous injuries. The driver of the offending Tractor stopped and came near them, however, since lot of people gathered, he fled from the spot alongwith the tractor. The number of the offending Tractor was noted as HR-05-BB-9002 and it was stated that he could also identify the driver of the offending Tractor. Ajay succumbed to his injuries in the hospital. On the basis of his statement, FIR No.171 dated 24.06.2020 was registered under Sections 279, 304-A, 337 IPC at Police Station Madhuban, Karnal. On the basis of the same set of allegations a claim petition was filed by the legal representatives of Ajay. Notice of the petition was issued. The driver of the offending vehicle denied the factum of the accident and submitted that a false FIR had been registered against him. The owner of the offending Tractor filed a separate written statement and stated that he had falsely been implicated in the case. The appellant- Insurance Company filed a written statement admitting the fact of issuance of the insurance policy, however, it denied the factum of the accident and took the plea of mis-joinder and non-joinder of necessary parties as well as the plea of violation of terms and conditions of the insurance policy on the ground that the driver of the offending vehicle did not have a valid and effective driving licence. On the basis of the pleadings the following issues were framed :
2. If issue No.1 is proved in affirmative, what amount of compensation, petitioners are entitled to and from whom ? OPP
3. Whether the vehicle in question was being driven in violation of the terms and conditions of the Insurance Policy and/or provisions of the Motor Vehicle Act ? OPR(3)
4. Relief.”
3. The Tribunal awarded the following compensation:
| Sr. No. | Heads | Calculation |
| 1. | Income | Rs.15,340/- |
| 2. | 40% of income to be added as future prospects | Rs.21,476/- (15340 + 6136) |
| 3. | Deduction – 1/4th | Rs.16,107/- (21476 - 5369) |
| 4. | Annual income | Rs.1,93,284/- (16107 x 12) |
| 5. | Multiplier – 18 | Rs.34,79,112/- (193284 x 18) |
| 6. | Loss of estate | Rs.15,000/- |
| 7. | Loss of consortium for widow | Rs.40,000/- |
| 8. | Funer | |
Chandra @ Chanda @ Chandraram & Anr. vs. Mukesh Kumar Yadav & Ors. [2021(4) RCR(Civ) 492]
Kirti & Anr. v. Oriental Insurance Company Limited
Magma General Insurance Company Limited v. Nanu Ram @ Chuhru Ram & Ors.
Minu Rout & Anr. v. Satya Pradyumna Mohapatra & Ors.
Sarla Verma (Smt). & Ors. v. Delhi Transport Corporation & Anr.
Compensation in motor accident cases should be assessed based on actual income and future prospects, not solely on minimum wage standards.
The court concluded that minimum wage standards guide but must not constrain just compensation in motor vehicle accidents, allowing for comprehensive income assessments.
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