The Divisional Manager v. Durwiksha Harijhan S/O. Sita Kumar
Motor Vehicles Act, 1988 – Ss.173(1), 147 – 'Liability only' policy
Case brief
What is this about?
Connected appeals MFA Nos.23412/2013, 20914/2013, 20915/2013 and 23413/2013 (MV) under Section 173(1) MV Act against common award dated 06.12.2012 of MACT-IX, Bellary in MVC Nos.467 and 468/2012. Key points: liability-only policy under Section 147; occupants travelling without proved goods are not covered as third parties; insurer exonerated; owner liable (Shamaraya followed). Enhancement per Pranay Sethi (future prospects 40%, multipliers 17/15, personal-expense deductions 50% and one-fourth) and Magma (consortium Rs.40,000 per dependent + 10% escalation). Keywords: occupant, third party, liability only policy, goods carriage, notional income Rs.6,500 KSLSA 2012, loss of dependency, loss of consortium, loss of estate, funeral and transportation expenses, 6% interest, deposit within eight weeks, Dharwad Bench, Hanchate Sanjeevkumar, J.
What did the court decide?
Appeals of the Insurance Company (MFA Nos.20914/2013 and 20915/2013) allowed; liability fastened on it set aside. Appeals of the claimants (MFA Nos.23412/2013 and 23413/2013) allowed in part; the common award dated 06.12.2012 in MVC Nos.467 and 468/2012 stands modified: compensation enhanced to Rs.10,49,200/- (MVC 467/2012) and Rs.14,70,500/- (MVC 468/2012) with 6% p.a. interest from the date of petition, payable by respondent No.1/owner, to be deposited within eight weeks; apportionment, deposit and release as per the Tribunal's order; amount in deposit by the Insurance Company to be transmitted to the Tribunal; no order as to costs.