Motor Vehicle Act Is A Beneficial Legislation, Should Be Interpreted In Favour Of Affected Persons: Madras High Court

The Madras High Court has observed that the Motor Vehicle Act is beneficial legislation and should be interpreted in favor of the affected persons. Justice R Subramanian and Justice R Sakthivel thus enhanced the compensation awarded to the family of a deceased minor boy in an accident involving vehicles driven by minor boys. The boy's family had approached the court to enhance the compensation awarded by the Chief Judge, Motor Accident Claims Tribunal, Chennai. In contrast, the Insurance company sought to set aside the award. The deceased was traveling as a pillion rider in the motorcycle along with his friends when another motorcycle, ridden in a rash and negligent collided and crashed into the motorcycle. At the time of the accident, the deceased was 17 years old and pursuing 2nd year Diploma in Electrical and Electronics Engineering at Panimalar Polytechnic College. The family sought a compensation of Rs. 50,00,000 with 12% interest. On the other hand, the insurance company opposed the claim and submitted that the motorcycles involved in the accident were ridden by minors who did not possess valid driving licenses. The company argued that since the owners had permitted minors to ride the motorcycle without a license, they had violated the terms and conditions of the insurance policy. The company also argued that the compensation sought was exorbitant and did not bear any legal, equitable, and reasonable basis. The tribunal noted that since the vehicle was ridden by minors, the terms and conditions of the policy had been violated. The Tribunal thus held that the insurance company was liable to pay compensation and later recover the same from the owners of the vehicle at 50% each. The court noted that since the deceased was covered under the insurance policy at the time of the accident, the tribunal had rightly concluded that the insurance company was liable to pay the award amount and recover it from the owners equally. However, the court decided to interfere with the quantum of compensation awarded and awarded an enhanced compensation including future prospects of the deceased. The court thus directed the insurance company to deposit the modified award to the credit of the case on the file of the Chief Judge, MACT, Court of Small Cases, Chennai with interest within a period of eight weeks. Counsel for Petitioner: Mr.M.B.Raghavan for M/s.M.B.Gopalan & Associates Counsel for Respondent: Mr.Ramya V. Rao Citation: 2024 LiveLaw (Mad) 221 Case Title: IFFCO-Tokio General Insurance Company Ltd v Kalaiselvi and others Case No: CMA NOS.423 AND 828 OF 2021Click here to read/download the judgment

Motor Vehicle Act Is A Beneficial Legislation, Should Be Interpreted In Favour Of Affected Persons: Madras High Court

Upasana Sajeev

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