High Court Partly Allows Insurer’s Appeal, Reduces Motor Accident Compensation After Correcting Contributory Negligence Deduction

A bench of Honourable Mr. Justice Hasmukh D. Suthar heard the first appeal filed by an insurance company challenging the award passed by the Motor Accident Claims Tribunal, Banaskantha. The appeal contested the quantum of compensation awarded to the claimants and the Tribunal’s treatment of contributory negligence assessed against the deceased driver.

The High Court partly allowed the appeal and modified the award to correct an error in the operative deduction for contributory negligence. The Court upheld the Tribunal’s assessment of the deceased’s monthly income at Rs.16,600, the application of 40% future prospects, a multiplier of 16 and the deduction of one-third for personal and living expenses, but intervened only to give effect to the 20% contributory negligence already apportioned. The Court observed that interference was required “to that limited extent” and recalculated the award so that, after a 20% deduction, the payable amount stood at Rs.24,99,776. The Court, in its reasoning, observed: “So far as the aspect of negligence is concerned, there is no dispute with regard to the apportionment determined by the learned Tribunal at 80% on the part of the driver of the offending vehicle and 20% on the part of the deceased. However, it clearly appears that, despite apportioning 20% contributory negligence to the deceased, the learned Tribunal has deducted only 10% from the total compensation in the operative part of the award. Therefore, interference is required to that limited extent.” The Court directed the insurer to deposit the modified award, allowed recovery of any excess already paid, and remitted records to the Tribunal for disbursement after compliance with court-fee formalities.

Background The dispute arose from a fatal collision on 24.05.2010 when a truck allegedly driven rashly and negligently collided with the car driven by the deceased, who succumbed to injuries. Claimants filed a petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation. The Tribunal assessed income, prospects and heads of damages and awarded a total of Rs.28,12,248, apportioning 80% negligence to the truck driver and 20% to the deceased but, in the operative part, deducted only 10% for contributory negligence.

The insurer (appellant) contended that the Tribunal misapplied evidence and erred by not deducting the full 20% as assessed. Respondents defended the award as fair and grounded in evidence. The High Court heard submissions, examined documentary material, and relied on precedents including Bimla Devi v. H.R.T.C., Parmeshwari Devi v. Amir Chand, National Insurance Co. Ltd. v. Pranay Sethi for future prospects, and Sarla Verma for the multiplier principle. The Court accepted the Tribunal’s methodology in assessing income on the basis of minimum wages and notional income, applied 40% future prospects for a 31-year-old deceased, deducted one-third for personal expenses as there were three claimants, and applied multiplier 16, finding those choices “just and proper and [they] did not call for any interference.”

Noting the arithmetic and consequential discrepancy in the operative portion of the award, the High Court recalculated heads of damages: future loss of income Rs.29,74,720; loss of consortium Rs.1,20,000; loss of estate Rs.15,000; funeral expenses Rs.15,000; total Rs.31,24,720. After deducting 20% contributory negligence, the payable amount became Rs.24,99,776. The appeal was partly allowed; the award was reduced from Rs.28,12,248 to Rs.24,99,776. The insurer could recover any excess Rs.3,12,472 if already paid. The Court directed deposit of the awarded amount within four weeks if not deposited, ordered remission of records to the Tribunal and directed recovery of any deficit court fees prior to disbursement.

Case Details: Case No.: C/FA/4321/2022 (First Appeal No. 4321 of 2022) Case Title: NATIONAL INSURANCE COMPANY LIMITED Versus SAJJANKANVAR WD/O DECD LAGHUSINH ALIAS LAKSHMANSINH DURJANSINH DEVDA RAJPUT & ORS. Appearances: For the Petitioner(s): MR RATHIN P RAVAL (5013) for the Appellant(s) No. 1 For the Respondent(s): KAASH K THAKKAR (7332) for the Defendant(s) No. 1,2,3; MR KK THAKKAR (2834) for the Defendant(s) No. 1,2,3; MR M T SAIYAD (3848) for the Defendant(s) No. 4