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2025 Supreme(Telangana) 1785

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD 
B.R. Madhusudhan Rao, J.
Myathari Manemma, And 4 Others – Respondent
Versus
K.Keeru Naik, Medak District And Another – Respondent 
MACMA.No.1174 of 2013
Decided On : 29-10-2025

Advocates:
Advocate Appeared:
For the Appellant : PALLE SRIHARINATH
For the Respondent: NARESH BYRAPANENI

Insurance companies are liable to pay compensation when the driver lacks a valid license, following the 'pay and recover' principle.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 173 - Appeal against tribunal's compensation award for death in motor accident - Compensation amount awarded was Rs.3,22,000/- - Court held that both, the driver of the crime vehicle and insurer are jointly and severally liable for compensation, reversing the tribunal's exoneration of the insurance company. (Paras 10, 24, 27)

(B) Liability - Insurance Company is liable to compensate if the driver lacks a valid driving license under the established principle of 'pay and recover' as held in several Supreme Court rulings. (Paras 17.1, 24, 27)

Facts of the case:
The deceased, a skilled mason, died from injuries sustained as a pillion rider in a motorcycle accident caused by a rashly driven auto. The petitioners claimed compensation of Rs.3,50,000/- under the MV Act. The tribunal initially awarded Rs.3,22,000/- against one respondent only. (Paras 3, 10, 21)

Findings of Court:
The deceased's family was entitled to compensation, and the court found the insurance company liable to pay it jointly with the driver who caused the accident. (Paras 24, 27)

Issues: Whether the compensation should be jointly borne by the owner and the insurer of the offending vehicle, and whether the tribunal's decision was legally sound. (Paras 15, 21)

Ratio Decidendi: The court ruled that the insurer must pay compensation when the driver lacks a valid driving license, reinforcing the 'pay and recover' principle, thus holding the insurer accountable alongside the owner. (Paras 24, 27)

Result: MACMA allowed; respondents Nos.1 and 2 declared jointly liable for compensation.

Table of Content
1. accident details and claim initiated. (Para 1 , 2 , 3 , 4 , 5)
2. arguments regarding liability and negligence. (Para 7 , 11 , 12)
3. court's analysis of negligence and insurance liability. (Para 8 , 10 , 15 , 21 , 22 , 23)
4. established principle of insurance liability for compensation. (Para 18 , 24 , 26)
5. order on joint liability for compensation. (Para 27)

JUDGMENT :

B.R.MADHUSUDHAN RAO, J.

1. The Motor Accidents Civil Miscellaneous Appeal is filed under Section 173 of the Motor Vehicles Act, 1988 (for short, ‘the MV Act’) assailing the award passed by the Motor Accidents Claims Tribunal - cum - I Additional District Judge, Medak at Sangareddy in MVOP.No.413 of 2011, dated 27.02.2013.

2. Appellants are the petitioners-claimants and respondents are the respondents in MVOP.No.413 of 2011.

3. Appellants-petitioners have filed claim petition under Section 166 of the MV Act claiming compensation of Rs.3,50,000/- for the death of the deceased Myathari Ashappa.

4. Appellant No.1 - petitioner No.1 is the wife, appellant Nos.2 to 5 - petitioner Nos.2 to 5 are the children of late Myathari Ashappa.

5. Myathari Ashappa is a skilled labourer working as a mason and was earning Rs.6,000/- per month. On 04.03.2011 at about 08.00 p.m., Ashappa travelled as a pillion rider on a motorcycle bearing No.AP-23-1274 along with one M.Lasmappa and Mahaboob to go to Shekapur village from Bonasapuram to attend Valima dinner of one Abdul Nabi. Motorcycle was driven by M.Lasmappa and when they reached the shivar of Malchelma village, the driver of the auto bearing No.AP-23-W-1682 drove the same in a rash and negligent manner with high speed came on the wrong side in opposite direction and hit their motorcycle. Due to which M.Ashappa sustained grievous injuries on his right leg, right kidney, right foot and other injuries all over the body. He was shifted to Bidar Institute of Medical Science, Government Hospital Bidar, was treated from 04.03.2011 to 20.03.2011 and surgery is also performed on him. On the advice of the doctors while they were shifting M.Ashappa to Gandhi Hospital, Secunderabad, in Tata Sumo vehicle, he died at 07.00 a.m. on 20.03.2011 on the way to the hospital at Patancheru town. The deceased was aged about 52 years as on the date of accident. On the complaint, Police, Zaheerabad Rural registered a case in Crime No.25 of 2011 under Section 304-A of IPC against the driver of the auto bearing No.AP-23-W-1682 and prayed to award compensation jointly and severally.

6. Respondent No.1 remained ex-parte before the Tribunal.

7. Respondent No.2 filed counter and denied the age, accident and involvement of the crime vehicle. Further contended that there is a contributory negligence on the part of the deceased as they were triple riding on the motorcycle at the time of the accident, the owner and insurer of the motorcycle No.AP-23-1274 are also proper and necessary parties to the petition and the claim petition is bad for non-joinder of necessary parties. The appellants- petitioners are put to strict legal proof that the driver of the auto and the driver of the motorcycle were having valid driving license as on the date of accident.

8. The learned Tribunal has framed the following issues:

1) Whether the death of the deceased occurred in the motor accident due to the rash and negligent driving of the driver of the crime vehicle?

2) Whether the petitioners were entitled for compensation as prayed for, if so, at what amount and from whom?

3) To what result?

9. Appellant No.1 - petitioner No.1 is examined as PW1 and also examined PW2 – Maibu and got marked Exs.Al to A6. Respondent No.2 got examined RW1-MSRKJ.Prasad and got marked Exs.B1 to B6.

10. The learned Tribunal after analyzing the evidence adduced by the parties and after going through the documents thereon, has partly allowed the claim petition by awarding compensation of Rs.3,22,000/- with proportionate costs and interest at the rate of 6% per annum from the date of petition till the da

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