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2024 Supreme(Telangana) 540

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
M.G.PRIYADARSINI, J.
The Bajaj Allianz General Insurance Co. Ltd – Appellant
Versus
Thammanaveni Padma – Respondent
M.A.C.M.A.No.760 of 2019
Decided on : 30-08-2024

Advocates:
Advocate Appeared:
For the Appellant : A RAMAKRISHNA REDDY
For the Respondent: SRIDHAR LONKALA

IMPORTANT POINT
The court ruled that the insurance company was not liable due to a fabricated policy, and compensation was adjusted based on the deceased's income and dependents.

Headnote:

(A) Motor Vehicles Act, 1988 – Section 166 – Claim for compensation due to death in a motor vehicle accident – The Tribunal awarded Rs.8,66,200/- which was enhanced to Rs.9,63,400/- by the High Court, with interest reduced from 9% to 7.5% per annum. The Insurance Company was exempted from liability due to lack of valid insurance policy. (Paras 11, 24, 26)

(B) Compensation – The court held that the deduction for personal expenses should be 1/4th instead of 1/3rd, and future prospects were considered at 40%. (Paras 23, 24)

(C) Liability – The court found that the cover note presented by the owner was fabricated, thus exempting the Insurance Company from liability. (Paras 22, 26)

Facts of the case :

The claim petitioners, family of the deceased, sought compensation for the death of T.Ilaiah in a motor vehicle accident caused by a tractor. The deceased was 29 years old and was earning Rs.15,000/- per month.

Findings of Court :

The court found the accident was due to negligent driving and awarded compensation based on the deceased's income and dependents.

Issues : The main issues included the determination of negligence, the validity of the insurance policy, and the quantum of compensation.

Ratio Decidendi : The court ruled that the insurance policy was invalid, and the compensation should reflect the deceased's actual income and dependents.

Result : Appeal partly allowed, compensation enhanced to Rs.9,63,400/- with reduced interest.

JUDGMENT:

1. Aggrieved by the Award dated 20.08.2018 passed in O.P.No.16 of 2017, on the file of the learned Motor Accidents Claims Tribunal-cum-III Additional District Judge, Asifabad, the 3rd respondent in the said O.P./Insurance Company preferred the present Appeal seeking to set-aside the order of the learned Tribunal.

2. For the sake of convenience, the parties hereinafter be referred as they were arrayed before the Tribunal.

3. The facts of the case in brief are that the claim petitioners, who are the wife, children and parents of the deceased-Sri T.Ilaiah, filed a petition under Section 166 of the Motor Vehicles Act, 1988 against the respondents 1 to 3 claiming compensation of Rs.23,60,000/- on account of the death of the deceased-T.Ilaiah in a Motor vehicle accident that occurred on 04.05.2012 at about 09.30 p.m. and respondent No.4 is the General Manager of the Auto Mobile Show Room, who got added as per orders in I.A.No.659 of 2017, dated 18.01.2018. As stated by the petitioners, on 04.05.2012 at about 9.30 p.m., when the deceased- T.Ilaiah was proceeding on his Auto bearing No.AP-01-Y-803 and when he crossed near Sowbhagya Toll Plaza at Kasipet, one Tractor bearing No.AP-01-Y-3725, which came there in a rash and negligent manner at high speed, dashed the Auto of the deceased. As a result, the Auto fell down and the deceased sustained Head injury and immediately, he was shifted to Sairam Multi Speciality Hospital, Karimnagar, where he was treated as inpatient and while undergoing treatment, the deceased succumbed to injuries on 05.05.2012 at 6.00 PM. It is further submitted by the petitioners that at the time of accident, the deceased was aged 29 years and was earning Rs.15,000/- per month by working as Auto driver and was contributing the same for the welfare and maintenance of the family and due to his untimely death in the accident, the petitioners lost their source of income and put to sufferance. Hence filed claim petition seeking compensation of Rs.23,60,000/- against the respondent Nos.1 to 3, who are the driver, owner and insurer of the subject Tractor bearing No.AP-01Y-3725.

4. Respondent No.1, who is the driver of the subject Tractor, remained ex-parte. Respondent No.2, who is the owner of the Tractor, filed his written statement stating that as the Tractor was insured with respondent No.3 and that the policy was in force as on the date of accident, as such, respondent No.2 is not liable to pay any compensation. Respondent No.3, who is the insurer of the subject Tractor, filed its counter stating that there is no insurance policy given by respondent No.3 and that the cover note mentioned in the petition was issued to another person, as such, respondent No.3 is not liable to pay any compensation. It is further contended that the driver of the subject Tractor do not possess valid driving license and that the petitioners have to prove the manner of accident, age, occupation, income of deceased and loss of income and that the quantum of compensation sought is excess and exorbitant and hence prayed to dismiss the claim against it.

5. Respondent No.4, who is General Manager of Auto Mobile Show Room, filed his counter stating that respondent No.2 produced insurance policy of respondent No.3 in April, 2011 and took the Tractor for Pooja and subsequently obtained Bank loan and then paid sale consideration and took delivery of Tractor in the month of June, 2011 and that the Insurance policy produced by respondent No.2 was submitted to RTA officials and based on it, registration was done and that respondent No.4 did not collect insurance amount from respondent No.2 and that the petitioners unnecessarily made him as a party to the petition, as such, the claim petition is liable to be dismissed against him.

6. Based on the rival contentions made by the parties, the learned Tribunal had framed the following issues for consideration:-

    1. Whether Thammanaveni Ilaiah died in the accident that occurred on 04.05.2012 at about 9.30 p

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