Source: Bombay High Court 

Why in News? 

Recently, the Kerala High Court in the matter of Bajaj Allianz General Insurance Co. Ltd. v. Sunita Virendra Sahani has held even without dependency the insurance company's liability does not cease and does not bar the claimants from filing a claim petition.   

What was the Background of the Bajaj Allianz General Insurance Co. Ltd. v. Sunita Virendra Sahani Case?  

• In this case a person was crossing road who was hit by the auto rikshaw and died.  
• The parents, wife and daughter of the deceased (Defendant) filed for claim before the Motor Accident Claims Tribunal (MACT). 
• The income of the deceased mentioned was not proved but it was pleaded that the deceased was a skilled labour and his income was Rs. 6000/-. 
• The defendant argued that the claim by the parents of the deceased is not maintainable as they used to live separately in a village and therefore, they cannot claim as dependents of the deceased. 
• The MACT however passed an order in the favour of the defendant and computed the compensation of Rs. 14,14,000/-. 
• The plaintiff aggrieved by the decision of MACT filed the present petition before the Bombay High Court. 

What were the Court’s Observations? 

• The Bombay High Court observed various cases and inferred that even in the absence of dependency does not cease the rights of the person claiming under the deceased to claim compensation.  
• It was further added by the Bombay High Court that even without dependency the insurance company's liability does not cease and does not bar the claimants from filing a claim petition. 
• It was held by the High court that parents are dependents of the son irrespective if they live together or separately. 
• Therefore, the contention made by the petitioner in the present case by the plaintiff was dismissed and it was concluded by the Bombay High Court that all the claimants are entitled to compensation and confirmed the decision of the MACT.    

Case Law 

• Montford Brothers of St Gabriel & Ors v. United India Insurance Co. Ltd. (2014): In this case it was held that every legal representative of the deceased is entitled to claim compensation under the Motor Vehicle Act, 1988 (MV). 

Objective of Motor Vehicle Act? 

• Road safety. 
• Efficient transportation. 
• Protection of the rights of road users. 
• The Act provides a comprehensive framework for traffic regulations, vehicle standards, licensing, and penalties for violations.   

Who are the Legal Representatives Under Motor Vehicle Act? 

• As per Clause (1) of Section 166 of MV Act following can be the claimants and the legal representatives as: 
  • He has sustained an injury. 
  • He is the owner of the property.  
  • He is the legal representative of the person who died in the motor accident. 
  • He is the agent authorized by the injured person, or by the legal representatives of the deceased. 

Required Conditions to be Entitled for Claiming Under Claim Tribunals? 

• As per Section 165, Clause (1) the following circumstances are required to be entitled for claiming compensation under claim tribunals: 
  • When the accident involves death or bodily injury to a person.  
  • When the accident results in the loss of any property of a third party. 
  • When such accidents arise out of the use of motor vehicles.