Himachal Pradesh High Court Awards Compensation in Fatal Motor Accident Case

Court Reverses MACT Decision, Orders Insurer to Indemnify Registered Owner for Rs. 27.19 Lakhs

In a significant judgment, the Himachal Pradesh High Court has overturned the decision of the Motor Accidents Claims Tribunal (MACT) regarding two appeals filed by Kamli and others against Boby Chauhan and others. The appeals, arising from a tragic accident that occurred on August 28, 2016, resulted in the death of four individuals, including Ghanshyam, Neetu Devi, and the driver Gian Chand. The accident transpired when the vehicle, driven by Gian Chand, rolled into a deep gorge due to rash and negligent driving.

The MACT had initially dismissed the compensation claims, citing the claimants' failure to prove rash and negligent driving. However, the High Court, presided by Justice Vivek Singh Thakur, critically examined the evidence, including FIR details and witness statements, to establish that the accident was indeed caused by negligent driving. The judgment emphasized that the registered owner of the vehicle remains liable for compensation under the Motor Vehicles Act, 1988, even if the transfer of ownership was in process at the time of the accident.

Justice Thakur meticulously analyzed the statutory provisions under the Motor Vehicles Act, particularly Section 50, which outlines the obligations of transferors and transferees regarding vehicle ownership. The court concluded that the registered owner, Boby Chauhan, is liable for the compensation since the transfer process was incomplete when the accident occurred. Furthermore, the High Court confirmed the insurer's duty to indemnify the registered owner, citing the validity of the insurance policy at the time of the accident.

The court awarded compensation based on the minimum wage criteria and applied a multiplier for calculating the total amount. The compensation amounts were determined as Rs. 14,94,000 for Neetu Devi and Rs. 12,25,200 for Ghanshyam, with an interest rate of 6% per annum from the date of the petition filing. The insurance company, as per the Private Car Package Policy, is mandated to indemnify the owner, Boby Chauhan, and pay the compensation directly to the claimants or deposit the amount with the court by October 31, 2025.

This judgment reinforces the legal principle that registered vehicle owners are accountable for accidents involving their vehicles, even amidst ownership transfer processes. It also underscores the insurer’s responsibility under package policies to cover liabilities, irrespective of breaches in terms and conditions, provided the policy is active during the incident.

Bottom Line:

Compensation claim under Motor Vehicles Act - Liability of registered owner and insurer in case of incomplete transfer of vehicle prior to the accident.

Statutory provision(s): Motor Vehicles Act, 1988 Section 50, Motor Vehicles Act, 1988 Sections 279, 337, 304A

Kamli v. Boby Chauhan, (Himachal Pradesh) : Law Finder Doc Id # 2789867