Case Note & Summary
The case arises from a motor vehicle accident that occurred on 21.01.2007 involving a lorry bearing registration No.KA-18/553. The deceased, Sundara Naik, aged 45 years, was a coolie earning Rs.4,500/- per month. He died in the accident. The claimants, his wife and two children, filed a claim petition before the Motor Accident Claims Tribunal, seeking compensation. The Tribunal partly allowed the claim and awarded Rs.4,52,000/- with interest at 6% per annum. Dissatisfied with the quantum, the claimants filed MFA No.4245/2014 seeking enhancement. The insurance company filed MFA No.728/2014 challenging its liability on the ground that the driver of the lorry did not possess a valid driving license at the time of the accident, as the license had lapsed. The High Court considered both appeals together. The court held that the notional income of the deceased should be taken as Rs.4,500/- per month as per the Lok Adalat guidelines for the year 2007. Applying the multiplier of 13 as per Sarla Verma v. Delhi Transport Corporation, the loss of dependency was calculated at Rs.4,68,000/-. Adding conventional heads, the total compensation was enhanced to Rs.8,52,000/-. Regarding the insurance company's appeal, the court found that the driver's license was lapsed at the time of the accident, which means it was not a valid license. However, the insurance company failed to prove that the insured had knowledge of the license being lapsed or that there was a willful breach of policy conditions. Therefore, the insurer was held liable to pay the compensation, but with a right to recover the same from the insured owner of the vehicle. The appeals were disposed of accordingly.
Headnote
A) Motor Vehicle Accident - Compensation - Death - Multiplier Method - Claimants sought enhancement of compensation for death of Sundara Naik in a road accident - Tribunal awarded Rs.4,52,000/- - High Court enhanced compensation to Rs.8,52,000/- applying multiplier of 13 based on age of deceased (45 years) and notional income of Rs.4,500/- per month - Held that multiplier should be as per Sarla Verma case and notional income for 2007 accident should be Rs.4,500/- (Paras 10-14). B) Motor Vehicle Accident - Liability of Insurer - Lapsed Driving License - Insurance company contended that driver's license was lapsed at time of accident, constituting breach of policy conditions - High Court held that lapsed license is not a valid license, but insurer must prove willful breach by insured - In absence of evidence that insured knew license was lapsed, insurer cannot avoid liability - Held that insurer is liable to pay compensation with right to recover from insured (Paras 15-20).
Issue of Consideration
Whether the claimants are entitled to enhanced compensation for the death of Sundara Naik in a motor vehicle accident, and whether the insurance company is liable to pay compensation despite the driver's license being lapsed at the time of accident.
Final Decision
MFA No.4245/2014 is allowed in part; compensation enhanced from Rs.4,52,000/- to Rs.8,52,000/- with interest at 6% per annum from the date of petition till deposit. MFA No.728/2014 is dismissed; the insurance company is directed to pay the compensation with liberty to recover the same from the owner of the vehicle.
Law Points
- Motor Vehicle Accident Compensation
- Multiplier Method
- Contributory Negligence
- Breach of Policy Conditions
- Lapsed Driving License
- Section 173(1) MV Act
