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IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD

THE HON’BLE SRI JUSTICE C.V.BHASKAR REDDY

M.A.C.M.A.No.578of 2019

DATE: 23.12.2025

Between:

United India Insurance Company Limited.

….. Appellant

AND

Sri A. Srinivas and one another.

….Respondents

JUDGMENT:

This appeal is filed by the appellant-Insurance Company

under Section 173 of the Motor Vehicles Act, 1988, challenging the

judgment and decree dated 23.08.2018 passed in M.V.O.P.No.569

of 2015 by the Chairman,Motor Accidents Claims Tribunal-cum-II

Additional District Judge, Ranga Reddy District at L.B. Nagar

(hereinafter referred to as “the Tribunal”), whereby the Tribunal

awarded compensation of Rs.1,49,000/- together with interest @

7.5% per annum to be payable by the driver-cum-owner of the

crime vehicle and the appellant-Insurance Company jointly and

severally, for the injuries sustained by the respondent No.1 herein/

claimant in a motor vehicle accident.

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2. The brief facts of the case are that on 17.08.2014 at about

01.30 P.M., the injured and his brother were proceeding from

Hyderabad to Kongara Kalan Village on Bajaj Stunner motorcycle

bearing No.AP-25-DB-6297 and when they reached near Bus Stand

of Kongarakalan Village, a Bajaj Pulsar motorcycle bearing No.AP-

29-BL-3162 (hereinafter referred as ‘crime vehicle’) driven in rash

and negligent manner with high speed, dashed the motorcycle of the

injured from opposite direction, due to which, they fell down on the

road and the injured sustained bleeding injuries on right thigh,

chest, right leg fingers and injuries all over the body. Immediately

after the accident, the injured was shifted to Jeevan Hospital,

Champapet, Hyderabad where he was admitted as an inpatient for

approximately 11 days and in addition to surgical intervention for

the fracture, he received medical treatment for his injuries and

incurred substantial medical expenditure. On receipt of the

complaint, Police, Ibrahimpatnam Police Station, registered a case

in Crime No.328 of 2014 for the offence under Section 338 of IPC

against the driver of the crime vehicle. The injured filed the

aforesaid claim petition before the Tribunal, under Section 166 of

Motor Vehicle Act, 1988 claiming compensation of Rs.5,00,000/-.

3. Before the Tribunal, the owner of the crime vehicle remained

ex parte. The appellant-Insurance Company filed a counter denying

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negligence on the part of the rider of the crime vehicle and

challenging the maintainability of the petition on various grounds,

including non-joinder of necessary parties i.e., owner of the Bajaj

Stunner motorcycle bearing No.AP 25 DB 6297, which was also

involved in the accident, non-production of a valid driving license by

the rider of the crime motorcycle, and alleged breach of policy

conditions. The Insurer also denied liability to pay compensation,

contending that the policy conditions were contravened and prayed

to dismiss the claim petition.

4. The Tribunal, on appreciation of the oral and documentary

evidence, held that the accident was caused due to rash and

negligent driving by the rider of the crime vehicle and awarded

total compensation at Rs.1,49,000/- directing the respondents

therein i.e., the owner and the insurer of the crime vehicle to pay

the same with interest at 7.5% per annum from the date of petition

till realization.Aggrieved by the same, the present appeal is filed by

the insurance company.

5. Learned Standing Counsel appearing for the appellant-

Insurance Company contended that the Tribunal erred in granting

compensation, since the rider/driver of the crime motorcycle was

in a drunken state and driving without a valid driving licence,

thereby breached the terms of the insurance policy and disentitled

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to statutory compensation; the Tribunal improperly assessed

income, loss of earnings, pain and suffering, and future expenses;

since the driver/owner of the crime vehicle violated policy

conditions, the insurance company ought not have been held

liable, and the claim ought to have been dismissed in entirety.

6. On