The insurer's liability to honor awards for third-party claims remains intact despite amendments to the Motor Vehicles Act, and contributory negligence was assessed at 10%.

JUDGMENT

The Civil Miscellaneous Appeal has been filed by the insurance company challenging the award passed by the Motor Accident Claims Tribunal in MCOP No. 1151 of 2022.

2. The main original petition was filed by the dependents of the deceased Rajkumar seeking compensation of Rs.1,00,00,000/-.

3. According to the claimants, the husband of the first claimant, father of the minor claimants 2 and 3 and son of the 4^th claimant namely Rajkumar died in a road accident that had occurred on 18.04.2022. According to them, when he was sleeping on the road divider in the National Highway at Alampuram Village, West Godavari District, a goods carrier belonged to the 5^th respondent and insured with the appellant came in a rash and negligent manner and dashed against the deceased. As a result of the accident, he died. Hence, the claim petition was filed by the dependants of the deceased seeking compensation.

4. The 5^th respondent, the owner of the goods carrier, remained exparte before the Tribunal and the claim petition was opposed by the insurer. According to the insurer, at the time of accident, the deceased was sleeping on the divider in the middle of the road and therefore, the accident had occurred only due to the negligence on the part of the deceased.

5. The Tribunal, based on the evidence available on record, came to the conclusion that the accident had occurred only due to the negligence on the part of the driver of the goods carrier insured with the appellant. The compensation payable to the claimants was quantified at Rs. 43,31,000/-. Aggrieved by the quantum of compensation, the insurance company has come before this court by way of this appeal.

6. The learned counsel for the Appellant/ Insurance company submitted that at the time of accident, the driver of the goods carrier insured with the appellant was not authorized to drive heavy vehicles and hence, the Tribunal ordered pay and recovery. It is the submission of the learned counsel for the appellant that after amendment to the Motor Vehicles Act by the Central Act 32 of 2019 and the deletion of proviso to Section 149(4) of MV Act , the Tribunal cannot order pay and recovery. The learned counsel also submitted that the deceased invited the accident by sleeping on the divider in the middle of the road and hence, he also contributed to the accident. The learned counsel further submitted that the amount awarded by the Tribunal under conventional heads are on higher side.

7. The learned counsel for the respondents 1 to 4/ claimants submitted that the Tribunal, based on proper appreciation of evidence available on record, came to the conclusion that the entire negligence was on the part of the driver of the goods carrier and the same need not be disturbed.

8. This Court in CMA.No.554 of 2025 and batch reported in 2025/MHC/991 had already held that notwithstanding the deletion of proviso to old Section 149(4) of MV Act (New Section 150), the Motor Accident Claims Tribunal can order pay and recovery. The relevant observation of this Court in 2025/MHC/991 reads as follows:-

28. The very same title or caption is retained in New Section 150 of Motor Vehicles Act. Further, defences enumerated under (2) are result of breach/omission by insured over which innocent third parties have no control. Hence, it is highly inequitable to interpret the section against its own title and object of main enactment. In this regard, it would be appropriate to refer to observation of Apex Court in British India General Insurance Co. Ltd., vs. Captain Itbar Singh and others reported in 1959 SCC OnLine SC 32, which reads thus:-

“17. ... ... ... ... It was said that the assured might be a man of straw and the insurer might not be able to recover anything from him. But the answer to that is that it is the insurer's bad luck. In such circumstances the injured person also would not have been able to recover the damages suffered by him from the assured, the person causing the injuries. The loss had to fall on some one