Compensation amount increased after insurer failed to prove evidence

February 14, 2024by Primelegal Team0

Title: ORIENTAL INSURANCE COMPANY LTD V K. SURAMBAYEE

Citation: C.M.A.(MD)No.870 of 2012 and MP(MD) No.1 of 2012

Dated on: 9.2.2024

Corum:  HON’BLE JUSTICE P. DHANABAL

Facts of the case

The case concerns a vehicle accident claim filed by respondents, who are the rightful heirs of a deceased person named Karuthapandi. Karuthapandi and his brother were riding a two-wheeler when a tractor crashed with their vehicle due to the driver’s reckless and negligent driving. The accident claimed Karuthapandi’s life immediately. The petitioners claimed that the accident resulted from the tractor driver’s negligence. Complainants petitioned the Motor Accident Claims Tribunal for compensation of Rs. 10,00,000, claiming that Karuthapandi was earning Rs. 20,000 per month at the time of his death. The respondent, an insurance company, disputed the claim, saying that the accident occurred due to negligence of two-wheeler rider, and that the tractor driver did not have a valid license to operate the vehicle at the time of the accident. During the hearings, the claimants produced witnesses and evidence to back up their case, but the insurance company did not provide any evidence or witnesses. The Tribunal, after considering the arguments and evidence, granted the claimants Rs. 3,70,000 with interest. The insurance company appealed the decision, challenging the liability

Issue

The main issue in the appeal is whether the driver of the tractor had a valid license to drive the vehicle and whether the insurance company is liable to pay the compensation to the claimants.?

Court analysis and Judgement

The court dismissed the appeal in terms of culpability but partially permitted it in terms of amount. The court changed the Tribunal’s verdict and increased the compensation to Rs.6,00,000/- with interest. According to the Supreme Court’s decision in the Mukund Dewangan case, the tractor driver possessed a valid license to drive a light motor vehicle, hence no separate badge or endorsement was required.

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Written by- Namitha Ramesh

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