S.163A MV Act | Legal Heirs Can Claim Compensation Even If Deceased Driver Was Negligent: AP High Court

The Andhra Pradesh High Court has held that the negligence of a deceased driver does not bar his legal heirs from claiming compensation under Section 163-A of the Motor Vehicles Act, 1988 observing that the provision is a beneficial legislation under which proof of negligence is not relevant. [2026 LiveLaw (AP) 109]Justice Venkateswarlu Nimmagadda allowed an appeal filed by the deceased driver's widow and minor son against the award of the Motor Accidents Claims Tribunal which had restricted the compensation to Rs. 50,000 under Section 140 of the Motor Vehicles Act, 1988 after holding that the deceased himself was negligent in causing the accident. The Court enhanced the compensation to Rs. 5 lakh by extending the benefit of Section 164A of the Motor Vehicles Act, 1988 and observed:“It is evident that the accident resulted in the death of the deceased and, therefore, the claim petition under Section 163-A of the Motor Vehicles Act, 1988 is maintainable, having regard to the object of the Act, which is a beneficial and welfare legislation. Even assuming that the deceased was negligent and contributed to the accident, in view of the amendment brought by Act 32 of 2019, the claimants would be entitled to compensation of Rs.5,00,000/- in the case of death as contemplated under Section 164 of the Motor Vehicles Act, 1988. Though the accident had occurred prior to the said amendment, at the time of final adjudication by this Court, the claimants are entitled to be granted the maximum benefit so as to ensure award of just and reasonable compensation.”The appeal arose from a claim petition filed by the wife and minor son of a tractor driver who died after the tractor overturned in 2012. The Motor Accidents Claims Tribunal held that the accident occurred due to the deceased's own negligence and found no proof of his employment. The claimants, however, maintained that he was employed as a tractor driver by the first respondent, the owner of the tractor, and was earning Rs. 10,000 per month.The High Court held that the Tribunal had erred in discarding the wife's unrebutted oral testimony regarding the deceased's employment merely because documentary proof of salary was unavailable, observing that wages in the agricultural sector are often paid through informal means. It further noted that the insurer had failed to produce any evidence to prove that the deceased did not possess a valid driving licence.Holding that the Motor Vehicles Act is a beneficial welfare legislation, the Court observed that even though the accident occurred prior to the 2019 amendment, the claimants were entitled to the enhanced statutory compensation of Rs. 5 lakhs under Section 164. It accordingly allowed the appeal and directed payment of the enhanced compensation with 9% interest per annum from the date of the claim petition till realization.Case Title: Veerapaneni Venkata Subhashini & Anr. v. Arikatla Venkata Rathnam & Anr.Case No.: M.A.C.M.A. No. 262 of 2023Counsel for the Appellants: Nuthalapati Krishna MurthyCounsel for Respondent: Mrs. S. PranathiClick Here To Read/Download Order

S.163A MV Act | Legal Heirs Can Claim Compensation Even If Deceased Driver Was Negligent: AP High Court

Ritika Verma

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Ritika Verma

S.163A MV Act | Legal Heirs Can Claim Compensation Even If Deceased Driver Was Negligent: AP High Court

Ritika Verma

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Ritika Verma

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