In a first appeal filed before the Gujarat High Court against a judgment dated 07-10-2021 by the Motor Accident Claim tribunal, Godhra (MACT) whereby the claim petition was partly allowed and a sum of Rs. 54,666/- along with 9% interest was awarded while deducting 70% of the total amount on account of self-negligence, a Single Judge Bench of Justice Mool Chand Tyagi modified the judgment and partly allowed the appeal.
On 26-08-2012, the appellant was driving a luxury bus from Godhra to Morwa. Respondent 5 was driving a trailer in a rash and negligent manner and coming at an excessive speed, dashed with the said bus, causing grievous injuries to the appellant. Thereafter, the appellant filed the claim petition before the MACT. Being aggrieved and dissatisfied with the impugned judgment, the appellants preferred the present appeal.
The insurer for both vehicles in the present case was United India Insurance Co. Ltd. (UIICL), which contended that the 70% deduction on account of self-negligence was appropriate and that there was no infirmity in the impugned judgment.
Regarding the quantum, the Court noted that the income had been assessed at Rs. 4000/-, and after referring to National Insurance Company Ltd.v. Pranay Sethi 2017 (16) SCC 680, stated that the notional monthly income of the claimant is required to be enhanced by 40% on account of his future prospects. Hence, the monthly income was Rs. 5600/-. After discussing all heads, the Court stated that the appellant shall be entitled for an additional compensation of Rs. 1,83,042/- at 9% interest per annum.
Further, the Court perused the insurance policy and found that UIICL charged a premium of Rs. 50/- under the head of “WC to employee 2”. It was also found that the policy was subject to the terms and conditions as well as IMT Endorsement Nos. 21, 38, and 40. It was stated that in view of IMT 40, the risk of the luxury bus driver was covered under the policy. The Court held that in case of self negligence, if the insurance company has charged an additional premium to cover the risk of the driver, it shall be held liable.
The Court found that the MACT committed a grave illegality by deducting 70% on account of the appellant’s self-negligence. Thus, the award was modified and the present appeal was partly allowed. UIICL was directed to satisfy the award with additional compensation within six weeks.
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