Kerala High Court: Anil K, Narendran, J., allowed this Motor Accident Claim Appeal filed against the order of Motor Accidents Claims Tribunal.

In the instant appeal, a claim petition filed under Section 166 of the Motor Vehicles Act 1988 was challenged for being inadequate. The appellant sustained injuries in a motor accident, which occurred on 27-04-2014, while he was riding a motorcycle. At the place of accident, the motorcycle was hit by a car. The counsel for the motorcyclist K.A. Hassan alleged that the accident occurred due to the rash and negligent driving of the car by the respondent 1. A claim petition was filed before the Tribunal claiming a total compensation of 4,50,000 rupees.

The car driver, while admitting the occurrence of accident contended through his counsel, A.A. Ziyad Rahman that the accident happened due to the rash and negligent riding of the motorcycle by the motorcyclist. It was contended by the Insurance Company that the compensation claimed is highly excessive.

The Tribunal arrived at a conclusion that the accident occurred due to the rash and negligent driving of the car by its driver. The Tribunal awarded a total compensation of 99,500 rupees together with interest at the rate of 9% per annum from the date of petition till realisation.

The Court relied on National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, wherein a Constitution Bench of the Supreme Court held that, Section 168 of the Motor Vehicles Act, 1988 deals with the concept of ‘just compensation’ and the same has to be determined on the foundation of fairness, reasonableness and equitability on an acceptable legal standard. The aim is to achieve an acceptable degree of proximity to arithmetical precision on the basis of materials brought on record in an individual case.

 In the view of the above considerations, the Court granted an additional compensation of 15,750 rupees with interest at the rate of 8% per annum from the date of petition till realisation. Since insurance coverage of the said vehicle was not in dispute, the insurer was held liable to indemnify additional compensation granted in this appeal, together with interest to the insured within a period of two months. [Asharaf K.A v. Easow T.T., 2020 SCC OnLine Ker 7968, decided on 20-01-2020]

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