Case title: 

National Insurance Co. Ltd. v. Lauretta Shashi Mogale and Ors.

Date of Order: 

8th December, 2023.

Bench: 

Shivkumar Dige, J

Parties:

Appellant: National Insurance Co. Ltd

Respondent: Lauretta Shashi Mogale and Ors.

SUBJECT

Motor accidents are a common occurrence on roads worldwide. When such incidents occur, the people involved may face various challenges, including physical injuries, damage to vehicles, and emotional trauma. In such a scenario, seeking compensation through motor accident claims becomes crucial. The Motor Accident Claims Tribunal (MACT) is a specialized court set up to resolve disputes that arise out of the Motor Accidents Act, of 1988. It was established to provide a speedy and impartial resolution to motor accident claims.

OVERVIEW

• The present matter dealt with an appeal filed by National Insurance Co. Ltd. against the Motor Accident Claims Tribunals for compensation in a fatal accident case.
• The family held that on July 26, 2011, deceased Shashin Mogale was proceeding in his car on the way to his house. At about 1:55 am, a tanker recklessly came from the opposite direction and crashed with the car of the deceased. Mogale was admitted to the hospital but he was subject to various injuries.
• The Tribunal, considering his salary at Rs. 98,700 per month including arrears, awarded compensation of Rs. 88,22,000.  The insurance company questioned the same in the present appeal. The claimants also filed a cross-objection, seeking enhancement of the compensation awarded.

ISSUE RAISED

• Whether the cross-objection by the claimant seeking for enhanced amount of Rs. 1671227/- as compensation maintainable?

ARGUMENTS ADVANCED BY THE APPELLANT

• The insurance company stated that the Tribunal incorrectly calculated the deceased's compensation by factoring in arrears of salary.
• Further, the appellants argued that the postmortem report indicated there was an alcohol smell, indicating the deceased was under the influence of liquor, but the tribunal did not consider this fact.

ARGUMENTS ADVANCED BY THE RESPONDENT

• Learned counsel for respondents argued that the offense was registered against the driver of the offending truck. The spot-panchanama clearly indicated that the driver came on the wrong side of the road and gave a dash to the vehicle of the deceased. 
• It was further submitted that the Chemical Analysis Report was received after the completion of the trial. It was produced on record and does not show that at the time of the accident, the deceased was under the influence of alcohol. Thus, the counsel requested the Hon’ble Court to allow the cross-objection and set aside the appeal.

JUDGEMENT ANALYSIS

• The Hon’ble High Court of Bombay held that the Tribunal's inclusion of arrears in the salary calculation was erroneous. After deducting arrears, taxes, and certain allowances, the court concluded at a revised monthly income of Rs. 75,812 for the deceased.
• Justice Shivkumar Dige, while upholding enhancement of compensation to the family of a deceased in an accident, deducted the amount of arrears mentioned in his salary slip while calculating monthly income.
• The court relied upon the view of the Hon’ble Apex Court in the case of Magma General Insurance Co. Ltd. where it was held that each claimant is entitled to Rs.48,000/- as consortium amount, Rs.18,000/- for loss of estate and Rs.18,000/- towards funeral expenses.
• Furthermore, the court did not find any merit in the submission of learned counsel for the appellant that there was contributory negligence of the deceased in the said accident.

CONCLUSION

As a result of the court's partial acceptance of the appeal and cross objection, the compensation amount was raised to Rs. 1,04,93,227 from Rs. 16,71,229. Since the accident occurred in 2011, the court rejected the insurance company's request to stay this order.