Bombay HC upholds compensation awarded by Motor Vehicles Tribunal in death of a man

Tribunal had directed payment of ₹7,82,000, inclusive of no-fault liability, with interest of 9% p.a., to the family

File. | Photo Credit: Vivek Bendre

The Bombay High Court recently dismissed the appeal of an insurance company, the insurer of a tanker that collided with a car and caused the death of a man, and directed the company to pay close to ₹4 lakh as compensation, as awarded by the Motor Accident Vehicles Tribunal.

A single Bench of Justice Anuja Prabhudessai was hearing a first appeal filed by the Shriram General Insurance Company Limited under the Motor Vehicles Act assailing the judgment passed on March 16, 2017 by the Motor Accident Vehicles Tribunal. The question before the court was whether the company was liable to indemnify the insured upon breach of terms and conditions of the policy.

The tribunal had directed the company to pay compensation of ₹7,82,000, inclusive of no-fault liability, with interest of 9% per annum from the date of the petition, to the widow and two sons of the deceased, who was a driver earning ₹5,000 a month.

On March 2, 2013, the deceased, 53-years-old at the time, was sitting in a shed near the ‘Shreepad petrol pump’ at Warkute. It is alleged that a collision took place between a gas tanker and a car on the Pune-Solapur road near the petrol pump, resulting in a gas leakage and the explosion of the tanker. The petrol pump, a hotel, and several vehicles, were engulfed in the fire. The deceased also succumbed to burn injuries.

The family claims that the accident took place because of rash and negligent driving by drivers of both the vehicles. They filed for a claim petition under the Motor Vehicles Act, claiming compensation from the owner/insured and insurers of the respective vehicles.

The company Shriram General Insurance Company Ltd., the insurer of the tanker involved in the accident, contended that the tanker was driven by a driver without a valid driving license and disputed its [the company’s] liability to indemnify the insured for breach of terms of the policy.

The tribunal, after considering the evidence, recorded that the deceased had died due to the burn injuries sustained in the accident, and held the drivers of both the vehicles responsible for the accident. Upon considering the age and income of the deceased, the tribunal awarded a compensation of ₹7,82,000 to the driver.

The court recorded that the insurer of the vehicle had not challenged the judgment and had already deposited 50% of the compensation along with appropriate interest, and that the family has already withdrawn the amount.

The court held: “The driver of the offending vehicle was competent to drive a transport vehicle. The Tribunal has observed that failure to make an endorsement on the driving license has not resulted in the accident. Hence there is no fundamental breach and therefore the company cannot be absolved of its liability.”

The court dismissed the appeal and said, “There is no reason to interfere with the findings.” The Bench directed the company to deposit the balance 50% of the compensation, with appropriate interest, before the tribunal.