Allahabad High Court Upholds Tribunal's Award of Rs.5.7 Lakh in Motor Accident Claim

National Insurance Company's Appeal Dismissed; Compensation Awarded Without Proof of Negligence

In a significant judgment, the Allahabad High Court has upheld the decision of the Motor Accident Claims Tribunal, Etawah, awarding a total compensation of Rs. 5.7 lakh to the family of Nand Kishore, who tragically died in a motor accident. The appeal, filed by National Insurance Company Limited, challenged the tribunal's award under Section 163A of the Motor Vehicles Act, 1988, which provides for compensation based on a structured formula without requiring proof of negligence.

The accident occurred on November 12, 2018, when Nand Kishore was hit by a loader while waiting by the roadside. The tribunal had awarded Rs. 5 lakh for loss of dependency and an additional Rs. 70,000 for non-pecuniary damages, including loss of consortium and funeral expenses, with an annual interest rate of 7%.

The insurance company contended that the delayed lodging of the FIR and the compensation exceeding the statutory limit under Section 164 was erroneous. However, Justice Sandeep Jain, presiding over the case, reinforced the tribunal's stance, emphasizing that the delay in FIR does not invalidate the claim if the accident's occurrence is established. The court cited precedents that highlight the non-necessity of proving negligence in claims under Section 163A.

The judgment also reaffirmed that non-pecuniary damages are permissible under the Uttar Pradesh Motor Vehicles Rules, 1998, even in no-fault cases under Section 163A. The court referred to the 2018 amendment to the Second Schedule of the Act, which outlines compensation guidelines, and upheld the tribunal's interpretation that additional compensation for non-pecuniary damages is valid.

The decision underscores the judiciary's commitment to ensuring adequate compensation for victims' families without entangling them in protracted litigation over fault determination, aligning with the principles of social justice and expedited relief envisioned by the Motor Vehicles Act.

Bottom Line:

Motor Vehicles Act - Compensation under Section 163A - Structured formula compensation to be awarded without proof of negligence - Non-pecuniary damages permissible under Rule 220-A of Uttar Pradesh Motor Vehicles Rules, 1998.

Statutory provision(s): Motor Vehicles Act, 1988 Section 163A, Uttar Pradesh Motor Vehicles Rules, 1998 Rule 220-A

National Insurance Company Limited v. Smt. Sudha Kumari, (Allahabad) : Law Finder Doc Id # 2800513