Source: Supreme Court

Why in News?

The Supreme Court (SC) has observed that the insurance company is not liable if the claimant was travelling in the trailer attached to the tractor, which was not insured though tractor was insured in the case of Dhondubai v. Hanmantappa Bandappa Gandigude.

Background

• The present matter pertains to compensation asked for the injuries suffered in an accident to which the Motor Accidents Claim Tribunal (MACT) through its judgment in 2015 awarded compensation of Rs. 1,78,500/- with interest at 6% per annum.
• The Bombay High Court (HC) enhanced the compensation to Rs.9,99,280/- with interest at 9% per annum through its judgment in 2018.
• The HC, while acknowledging that the claimant was in the trailer which was not insured that was being towed by an insured tractor, absolved the Insurance Company of responsibility and the compensation was to be taken from the owner of the vehicle.
• The appellant/claimant therefore presented the claim before the Supreme Court (SC) seeking payment of the compensation.

Court’s Observations

• The SC bench comprising of Justice A.S. Bopanna and Prashant Kumar Mishra observed that the law is well settled that when a tractor and trailer are involved, both the tractor as well as the trailer are required to be insured.
  • In a normal circumstance, when the claimant was travelling in the trailer which was not insured, the liability on the Insurance Company cannot be fastened.
• However, the bench, while observing that the claimant is a lady who was working as a labourer aged about 20 years as on the date of the accident, relied on the case Oriental Insurance Company Ltd. v. Brij Mohan & Ors. (2007) and invoking its powers granted by Article 142 of Constitution of India held that in such circumstances, it would not be possible for the claimant to recover the amount from the owner.
  • Therefore, in that circumstance, it directed that the respondent-Insurance Company shall pay the amount awarded by the HC as compensation with the accrued interest and recover the same from the owner of the vehicle.

Motor Accidents Claim Tribunal (MACT)

• Motor Accident Claims Tribunals deals with claims relating to loss of life/property and injury cases resulting from Motor Accidents.
• Established by Motor Vehicle Act 1988, Claims Tribunal is defined under Section 165 which authorizes the State Government to constitute Claims Tribunals to adjudicate claims for compensation originating from motor vehicle accidents, ensuing death or bodily injury to persons or damage to any property of third parties.
• Section 165(3) provides for qualifications to be a member of the tribunal as follows:
  • A person shall not be qualified for appointment as a member of a Claims Tribunal unless he -
    • (a) is, or has been, a Judge of a High Court, or
    • (b) is, or has been, a District Judge, or
    • (c) is qualified for appointment as a Judge of a High Court or as a District Judge.
• Key features of the Motor Accidents Claims Tribunal include:
  • Jurisdiction: MACT has jurisdiction to hear cases involving accidents caused by the use of motor vehicles and the resulting in injuries or fatalities.
  • Compensation: Its primary purpose is to determine the amount of compensation that should be awarded to the victims or their legal heirs in case of death. This compensation typically covers medical expenses, loss of income, disability, and pain and suffering.
  • Speedy Resolution: They aim to provide quicker resolutions to accident-related cases compared to regular courts. This is important for the timely disbursement of compensation to the victims or their families.
  • Appeals: Decisions given by MACTs can be appealed in Higher Court of respective state by any of the dissatisfied parties.
    • Section 173 of Motor Vehicles Act, 1988 states that subject to the other provisions, any person aggrieved by an award from a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court.
    • Also, no appeal shall lie against any award of a Claims Tribunal if the amount in dispute in the appeal is less than ten thousand rupees.
  • Insurance Companies: Insurance companies often play a role in these cases, especially when the compensation is sought from the insurer of the vehicle responsible for the accident.