HC cuts accident relief from Rs 8L to Rs 50,000, Auto News, ET Auto

The judge observed that the applicants are only entitled to compensation under article 140 of the law which stipulates that in the event of death or permanent disability of any person resulting from road accidents, the owner of the vehicle is required to pay Rs 50,000 in the event of death and Rs 25,000 in the event of permanent disability. So the judge overturned the court’s sentence and ordered the insurer to pay the family 50,000 rupees.

Madurai: Observing that driver’s negligence must be established in order to claim compensation under section 166 of the Motor Vehicle Act, the Madras District Court reduced compensation awarded to members of the family of a victim of an accident of Rs 8.02 lakh to Rs 50,000. The case concerned the death of a woman after the two-wheeler on which she was riding with her husband skidded in the district of Thanjavur in August 2013.

Selvam and his wife Pushpalatha were traveling by bicycle near the village of Poonayiruppu when a cow crossed the road. When he applied the brake, the vehicle skidded and they fell. Although both were injured, Pushpalatha died in hospital the same day. Selvam and her daughters have offered compensation to the Thanjavur Road Accident Claims Court. The court issued an order in 2015 requiring the insurance company to pay compensation of Rs 8.02lakh, ruling that there had been no negligence on the part of Selvam who drove the two-wheeler. Contesting the order, the insurance company filed this various civil action before the bench of HC Madurai.

Judge K Murali Shankar pointed out that in a claim under section 166 of the law, it is mandatory to show that a person is guilty of negligent driving and that only in this case, the owner of the offending vehicle can be made responsible. In the present case, there is no evidence that the careless driving of the offending vehicle was responsible for the accident. The insurance company argued in court that Selvam did not have a driver’s license and paid a fine for the same in the lower court.

The judge observed what other evidence or documents are needed to demonstrate that the condition of the insurance policy has been breached. The judge observed that the applicants are only entitled to compensation under article 140 of the law which stipulates that in the event of death or permanent disability of any person resulting from road accidents, the owner of the vehicle is required to pay Rs 50,000 in the event of death and Rs 25,000 in the event of permanent disability. So the judge overturned the court’s sentence and ordered the insurer to pay the family 50,000 rupees.

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