Case Note & Summary
The appeal arises from an Award dated 1st February 2024 passed by the Motor Accident Claims Tribunal, Mumbai in Application No.626/2017, awarding compensation of Rs.58,54,183/- with interest at 7.5% per annum to the claimant, Alka Vijay Chautray, for injuries sustained in a motor vehicle accident on 8th January 2015. The claimant was standing on the road when a tempo driven rashly and negligently by Bhalerao Adaji Katkar hit her. The insurer, Bajaj Allianz General Insurance Company Ltd., contested the claim. The Tribunal held the driver negligent and awarded compensation. The insurer appealed on three grounds: (i) the driver's licence was for light motor vehicle (non-transport) whereas the tempo weighed 7500 kg, thus invalid; (ii) the claimant had received Rs.1,75,000 from mediclaim which should be deducted; (iii) the multiplier of 14 applied by the Tribunal was incorrect. The Court heard arguments from Mr. Sarthak S. Diwan for the appellant and Mr. Vasant N. More for the respondent-claimant. The Court examined the licence issue and held that under Section 10(2)(d) of the Motor Vehicles Act, 1988, a light motor vehicle licence covers transport vehicles with gross weight not exceeding 7500 kg, so the licence was valid. On the mediclaim issue, the Court held that the amount received from mediclaim must be deducted to prevent double compensation. On the multiplier, the Court applied the Sarla Verma guidelines and reduced the multiplier from 14 to 13 as the claimant was 48 years old. The Court partly allowed the appeal, reducing the compensation by Rs.1,75,000 and adjusting the multiplier, resulting in a modified award.
Headnote
A) Motor Vehicles Act - Driving Licence - Validity - Light Motor Vehicle Licence for Tempo - Section 10(2)(d) of Motor Vehicles Act, 1988 - The driver held a licence to drive light motor vehicle (non-transport) but the tempo had a gross weight of 7500 kg. The Court held that a light motor vehicle licence covers a tempo as the definition of light motor vehicle includes transport vehicles with gross weight not exceeding 7500 kg. The licence was valid. (Paras 4-5) B) Motor Accident Compensation - Deduction of Mediclaim - Double Compensation - The claimant received Rs.1,75,000 from Star Health and Allied Insurance Company as mediclaim for the same injuries. The Court held that this amount must be deducted from the compensation awarded to avoid double recovery. (Para 6) C) Motor Accident Compensation - Multiplier - Age of Claimant - The Tribunal applied multiplier of 14 based on the age of the claimant (48 years). The Court held that the correct multiplier as per Sarla Verma v. DTC is 13 for age 46-50. The multiplier was reduced to 13. (Para 7)
Issue of Consideration
Whether the driver's licence for light motor vehicle (non-transport) is valid for driving a tempo weighing 7500 kg; Whether the mediclaim amount received by the claimant should be deducted from the compensation awarded; Whether the multiplier applied by the Tribunal is correct.
Final Decision
Appeal partly allowed. The Court held that the driver's licence was valid. The mediclaim amount of Rs.1,75,000 shall be deducted from the compensation. The multiplier is reduced from 14 to 13. The award is modified accordingly. No order as to costs.
Law Points
- Driver's licence for light motor vehicle covers tempo up to 7500 kg
- Mediclaim amount received by claimant must be deducted from compensation
- Multiplier to be based on age of deceased or injured
- Notional income assessment for self-employed persons
