Compensation rights in motor accident claims involving insurance policy cancellation due to dishonoured payment.

1.This order shall govern the disposal of aforesaid two appeals (Misc. Appeal No. 848 of 2008 and Misc. Appeal No. 653 of 2009) having arisen against a common award dated 28.4.2008 in Claim Case No. 61 of 2007 passed by the Seventh Additional Member of the Motor Accidents Claims Tribunal, Gwalior (MP).

2. Apparently, Misc. Appeal No. 653 of 2009 is submitted by the appellant insurance company beyond the period of limitation, hence, with a view to condone such delay of 352 days, firstly I.A. No. 10816 of 2009 and supporting it another application I. A. No. 3099 of 2013 have been filed. The grounds urged for condoning the delay are that the concerned appearing counsel before the Tribunal could not inform the result of the case well within time and, therefore, the appellant insurance company could not know the fate of the case. It is further pointed out that at the relevant time, the insurance company was having its Divisional Office at Indore. Appellant could know the result about the case only at Gwalior when the notice was served in an execution case. Apart from the aforesaid, it is submitted that the file containing proposal was misplaced and could not be traced within time of limitation, hence, the delay has occurred in preferring this appeal.

3. Considering the averments made in the application, it appears that the case of the insurance company was not properly contested before the Tribunal. However, in the interest of justice, even though the appeal presented on behalf of the insurance company is time - bared, learned counsel appearing for the insurance company is heard at length after taking into consideration the grounds available under S.147 and S.149 (2) of the Act, in view of specific circumstances of the case.

4. Now, turning to the case, the facts, as evident from the record, are that on 21.2.2007, Brijmohan Dwivedi along with his family members was travelling from Shivpuri to village Sirsod in a hired Bolero jeep for participating in an engagement ceremony. When the jeep crossed the new forest colony and reached Shivpuri - Jhansi Highway, the offending dumper coming from the opposite side which was being driven in a rash and negligent manner by respondent No. 1 dashed against the jeep from front side, as a result the jeep turned turtle. In the said accident, Brijmohan and his brother Rajendra Prasad died on the spot while other passengers got serious injuries. Later on, the injured were shifted to the hospital. On the report, the F.I.R. was lodged on which Crime No. 36/07 for offence under S.279 and S.337 of Indian Penal Code was registered against the driver of the said dumper. After investigation, the charge - sheet was filed before the criminal court.

5. At the time of accident, Brijmohan Dwivedi, aged 56 years, was working on the post of Training Officer in IIT Institute and was getting a monthly salary of Rs. 12,400 which was the source of income to maintain the family and after his death, the family was starving. Hence, by submitting a claim, his wife and other dependants prayed for Rs. 20,00,000 under all heads as compensation to be recovered jointly or severally from the respondents.

6. Therefore, the submission of learned counsel representing the appellants in Misc. Appeal No. 848 of 2008 is that the award under appeal is not in consonance with the evidence and the settled principles of law. It is further contended that learned Tribunal erred in applying the multiplier while determining the compensation. No adequate compensation under other heads was awarded. On the basis of above, it is prayed that by allowing the appeal just and proper compensation may be awarded in favour of