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.3375 of 2019 DATE: 22.01.2026 Between:

Reliance General Insurance Co. Ltd., Represented by its Manager …..Appellant AND Smt. Shaheen Begum and seven others.

….Respondents

JUDGMENT

This appeal, under Section 173 of the Motor Vehicles Act, 1988, is filed by the appellant-insurance company, challenging the order and decree dated 15.05.2019 passed in M.V.O.P.No.501 of 2015 by the Motor Accidents Claims Tribunal-cum-Family Court-cum VIII Additional District and Sessions Judge, Mahabubnagar (hereinafter referred to as “the Tribunal”), whereby the Tribunal awarded compensation of Rs.23,38,000/- together with interest @ 9% per annum in favour of the respondent Nos.1 to 6 herein/claimants, for the death of one Md. Rafeeq (hereinafter referred to as “the deceased”)

in a motor vehicle accident.

2. The brief facts of the case are that the deceased was working as a driver of a lorry bearing No.AP-29-BB-4952. On 06.07.2015 at night time, while the deceased was proceeding from Chennai towards Vijayawada on N.H.No.5 road, at about 6:30 a.m., when he reached the limits of Gouravaram village, the offending lorry bearing No.AP-31- TE-4888, driven by its driver in a high speed and in a rash and negligent manner, overtook the lorry of the deceased and suddenly stopped without taking any precautionary measures. Consequently, the deceased lost control and rammed his lorry into the rear side of the said offending lorry, sustaining grievous injuries. He was shifted to Government Hospital, Kavali and later to D.S.R. Government Hospital, Nellore, where he succumbed to his injuries on 07.07.2015. The Police of Kavali (Rural) PS registered a case in Cr.No.148/2015 for the offence under Section 304-A of IPC against the driver of the offending lorry. Stating that the deceased was earning Rs.13,000/- per month and the appellants are dependent on him, the claimants filed the aforesaid claim petition seeking compensation of 18,00,000/-.

3. Before the Tribunal, the respondent Nos.1 and 3 (owner and driver of the offending lorry) remained ex parte. The respondent No.2/Insurance Company/Appellant herein contested the claim petition by filing a counter-affidavit denying the manner of accident, the validity of the driving licence, permit, and fitness of the vehicle, and further contended that the claim was exorbitant.

4. The Tribunal, on appreciation of the oral and documentary evidence, held that the accident occurred due to the rash and negligent driving of the driver of the lorry bearing No.AP-31-TE-4888 and awarded a total compensation of Rs.23,38,000/- with interest @ 9% per annum in favour of the claimants. Aggrieved thereby, the appellant/Insurance Company filed the present appeal.

5. Heard the submissions of the learned counsel for the respective parties and perused the record.

6. The learned counsel for the appellant has submitted that the Tribunal erred in holding the appellant liable as the charge sheet indicated the driver of the offending lorry slowed down due to speed breakers, suggesting contributory negligence on the part of the deceased. It is further submitted that the Tribunal erred in fixing the monthly income at Rs.12,000/- and adding 40% towards future prospects in the absence of cogent evidence of permanent employment, and that the interest rate of 9% p.a is excessive compared to the rate usually awarded by the Hon'ble Supreme Court.

7. On the other hand, the learned counsel for the respondent Nos.1 to 6/claimants supported the impugned award, contending that the Tribunal rightly appreciated the evidence of PW2 and the admissions of RW1 regarding the negligence of the offending driver.

8. With regard to negligence and liability, the material on record, including the FIR and charge sheet (Exs.A1 and A5), demonstrates that the police investigation concluded that the driver of the offending lorry was responsible for the accident. Notably, the ap