Court Directs Insurance Company to Pay Rs. 5 Lakhs to Victim's Family, Emphasizes "Pay and Recover" Principle
In a significant judgment, the Calcutta High Court has directed the Magma HDI General Insurance Company to pay an enhanced compensation of Rs. 5,00,000 to the family of a minor who tragically lost her life in a 2014 motor vehicle accident. This ruling comes in light of the amended Second Schedule of the Motor Vehicles Act, 1988, which mandates a fixed compensation for fatal accidents, overriding the earlier amount determined by the Motor Accident Claims Tribunal.
The case, titled "Soma Das v. Manager, Magma HDI General Insurance Company Limited," was presided over by Justice Md. Shabbar Rashidi. The appellants, Soma Das and Gour Gopal Das, had challenged the previous tribunal ruling which awarded Rs. 3,49,500 for the loss of their daughter, Shinjini Das, who died after being hit by a truck on her way to school.
The Court highlighted that the amendment to the Second Schedule, effective from May 22, 2018, applies to all pending claims, irrespective of the accident's date. Thus, the fixed compensation of Rs. 5,00,000 applies to the case at hand, as the appeal was pending post-amendment.
Furthermore, the judgment reinforced the "pay and recover" principle, allowing the insurance company to recover the compensation amount from the truck's owner if it is proven that the driver violated the terms of the insurance policy. This includes instances where the driver held a fake license, as was contended in this case.
In its ruling, the Court also granted interest at a rate of 6% per annum on the compensation amount from the date of filing the claim application until realization. The judgment emphasized the legislative intent behind the amendment as beneficial, aiming to simplify compensation determination and ensure timely relief to victims' families.
The insurance company is required to deposit the compensation amount with the Registrar General within six weeks, following which it will be disbursed to the claimants in equal shares.
The judgment aligns with the Supreme Court's stance in similar cases, reiterating the procedural nature of the amendment and its applicability to ongoing cases. This decision marks a crucial step in ensuring justice for accident victims and their families, reinforcing the legal framework's commitment to swift and equitable compensation.
Bottom Line :
Motor Vehicles Act, 1988 - Amendment to Second Schedule providing fixed compensation of Rs. 5,00,000/- for fatal accidents is applicable to pending claim applications/appeals post-May 22, 2018, regardless of the date of the accident. The principle of "pay and recover" applies where the driver of the offending vehicle violated terms of the insurance policy.
Statutory provision(s): Motor Vehicles Act, 1988 Section 163A, Second Schedule Amendment
