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2024 Supreme(MP) 31
IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
Hirdesh, J.
Cholamandalam Ms General Insurance Company Ltd. - Appellant
Versus
Smt. Budhni Bai W/o Late Mohanlal Markam and Ors. – Respondents
Misc. Appeal No. 1808 & 3689 of 2022
Decided On : 12-01-2024
Advocate Appeared:
For the Appellant :Shri Mohd. Siddiqui, Advocate, Shri Priyank Tiwari, Advocate
For the Respondent:Shri Priyank Tiwari, Advocate, Shri A.K. Pandey, Advocate, Shri Mohd. Siddiqui, Advocate
The main legal point established in the judgment is the interpretation of the coverage of passengers under the insurance policy for motor accidents and the assessment of compensation under the Motor Vehicle Act.
Headnote:
Motor Vehicle Act - Compensation for Motor Accident - Section 166 - New India Assurance Company Limited Vs. Asha Rani and others (2003) 2 SCC 223
Fact of the Case:
The claimants filed a claim petition under Section 166 of the Motor Vehicle Act for compensation due to the death of Mohanlal in a motor accident. The Insurance Company denied the allegations and pleaded that the deceased was not covered in the policy due to being an unauthorized gratuitous passenger and sitting in the loading portion of the vehicle.
Finding of the Court:
The court found that the deceased was not a gratuitous passenger and was sitting in the vehicle as the owner of the goods, thus covered under the Insurance Policy. The court also assessed the income of the deceased and enhanced the compensation amount from the Tribunal's award.
Issues: The issues revolved around the coverage of the deceased under the insurance policy and the assessment of the deceased's income for compensation.
Ratio Decidendi: The court interpreted the provisions of the Motor Vehicle Act and relied on the case of New India Assurance Company Limited Vs. Asha Rani and others (2003) 2 SCC 223 to determine the coverage of the deceased under the insurance policy. The court also considered the relevant provisions for assessing the compensation amount.
Final Decision: The appeal filed by the Insurance Company was dismissed, and the claimants' appeal for enhancement of compensation was partly allowed.
ORDER :
1. As both these appeals arise out of the same award, they are being decided by a common order. The Insurance Company in M.A.No. 1808 of 2022 and claimants in M.A.No. 3689 of 2022 have filed these appeals being aggrieved by the award dated 4.1.2022 passed by M.A.C.T, Mandla, District Mandla in M.A.C.C. No. 45/2020 whereby the Tribunal awarded a sum of Rs.4,26,400/- with interest from the date of filing of petition till its realization in favour of claimants by way of compensation on account of death of Mohanlal in motor accident which allegedly took place on 6.12.2019.
2. The brief facts of the case are that claimants filed a claim petition under Section 166 of the Motor Vehicle Act to the effect that on 6.12.2019 at about 12:00 hrs deceased Mohanlal Markam was travelling in a pick up vehile bearing No. M.P.20.J.B. 3393 to Ghughari Bazar. When the vehicle reached in front of house of Sandeep Choudhary at village Pandkala’s main road, the drive applied brake all of a sudden. As a result, Mohanlal fell on the ground and sustained grievous injuries. He was taken to Gughari Hospital for treatment, where he died.
3. Claimants further pleaded that deceased was 55 years old healthy man and by means of agriculture and labour work, he used to earn Rs.8,000/- per month, which helped him to meet his expenses as well as that of his dependents. Claimants claim Rs.19,00,000/- along with interest. The owner and driver remained ex-parte whereas the Insurance Company filed reply and denied the allegations. It was pleaded by the Insurance Company that in case of delay in lodging FIR, therefore, implant is writ large. It was also pleaded that the vehicle insured was a goods carrying vehicle and the deceased was travelling as an unauthorized gratuitous passenger not covered in the policy. He was sitting on the loading portion and which is also not permissible and thus the breach of policy has occasioned and therefore the company be exonerated. It was pleaded that it is a case of non-possession of valid and effective driving license and permit with evidence and thus the breach of policy has also occurred due to the said negligence and thus the company be exonerated.
4. Issues were framed and evidence was recorded and the Tribunal awarded Rs.4,26,400/- with interest in favour of claimants.
5. Being aggrieved by the impugned award, the appellant/ Insurance Company has preferred M.A.No.1808 of 2022 on the ground that the deceased was not sitting in the cabin of vehicle meant for passengers. He was sitting in the loading portion. Deceased was an unauthorized gratuitous passenger and was not covered in the policy. Insurance Company, by way of Ex.D-1 claims that the driver did not have valid and effective driving license on the date of the accident. Besides this, the compensation awarded by the Tribunal is on higher side. Under these grounds, learned counsel for the Insurance Company pleaded that the Insurance Company be exonerated from the liability of paying compensation or in the alternative, the quantum of compensation be reduced.
6. The claimants or appellants in M.A. No. 3689/ 2022 have filed this appeal for enhancement of compensation amount and contended that the Tribunal has wrongly assessed the income of the deceased as on the date of the accident i.e. 06.12.2019, Collector rate was Rs.7,950/- for unskilled labour.
7. Both the appellants pray for rejection of appeal of each other.
8. First of all, lets take into consideration the appeal filed by the Insurance Company. The Insurance Company submitted that the offending vehicle was goods carrying vehicle and instead of sitting in the cabin meant for passengers, the deceased was sitting in the loading portion of the vehicle, which is against the policy, hence breach of policy has occurred, therefore, Insurance Company be exonerated from making payment of compensation.
9. The Insurance Company
