[Cites 3, Cited by 0]
Bombay High Court
The United India Insurance Company Thr. ... vs Mohan Vinayak Gaikwad And Others on 9 April, 2026
2026:BHC-NAG:5592
1 fa599.2015.odt
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH : NAGPUR
FIRST APPEAL NO.599/2015
The United India Insurance Company,
through its Branch Manager, Branch
Office, Near Balaji Plots, Deoji Khimaji
Mangal Karyalaya, Khamgaon,
Tq. Khamgaon, Distt. Buldhana,
Represented by Manager,
The United India Insurance Company
R.O. Nagpur. ... Appellant
- Versus -
1. Mohan Vinayak Gaikwad,
Aged 45 Yrs., Occu. Nil.
2. Mrs. Shobha W/o Mohan Gaikwad,
Age 42 Yrs., Occ. Household.
3. Ku. Nita Mohan Gaikwad,
Aged 16 Yrs., Occu. Student.
(Minor through Parent Guardian
Father Claimant No.1)
All R/o Khupgaon, Tah. Distt. Buldana.
4. Gurvindersing S/o Kuldipsingh Tuteja,
Age Major, Occu. Transport Business,
R/o 54, Shinde Colony at Post, Tah.
Distt. Aurangabad.
5. Nimba S/o Babulal Patil,
Age Major, Occu. Agriculturist,
R/o Pathrod, Post Kolgaon,
Tah. Bhadgaon, Distt. Jalgaon. ... Respondents
2 fa599.2015.odt
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Mrs. Mrunal Naik, Advocate for the Appellant.
Mr. S.P. Pawar, Advocate for the Respondent Nos.1 to 3.
Mr. Gaurav Gadge h/f. Mr. Pradeep Shantaram Kshirsagar, Advocate
for the Respondent No.5.
----------------
CORAM: NEERAJ P. DHOTE, J.
DATE OF RESERVING THE JUDGMENT: 22.01.2026.
DATE OF PRONOUNCING THE JUDGMENT: 09.04.2026.
ORAL JUDGMENT
This is an Appeal under Section 173 of the Motor Vehicles Act,
1988 (for short "M.V. Act") by the Insurance Company against the
judgment and award dated 22.09.2014 passed by the learned Motor
Accident Claims Tribunal, Buldhana in Claim Petition No.307/2011
awarding compensation of Rs.8,90,000/- with 8% interest in the
Claim Petition preferred by the Respondent Nos.1 to 3 under Section
163-A of the M.V. Act.
2. Heard the learned Advocate for the Appellant and the learned
Advocate for the Claimants. Scrutinized the papers.
a) It is submitted by the learned Advocate for the Appellant that,
the Claim Petition was not maintainable. The compensation awarded
by the learned Tribunal was not as per the Second Schedule. No
offence was registered against the vehicle which was insured with
the Appellant Company. The F.I.R. was not challenged. The
Claimants cannot be compensated for the wrong committed by the
deceased. The learned Tribunal committed an error by awarding the
compensation as if the Claim Petition was filed under Section 166 of
3 fa599.2015.odt
the M.V. Act. In the Claim Petition under Section 163-A of the M.V.
Act, the structured compensation is to be granted. In view of the
settled legal position, the impugned judgment and award be suitably
modified. In support of her submissions, she relied on the judgments
in Sarla Verma (smt) and ors. V/s. Delhi Transport Corporation and
anr., (2009) 6 SCC 121 wherein the distinction between Section
163-A and Section 166 of the M.V. Act is shown and in New India
Assurance Company Limited V/s. Usha Devi and others , 2025 SCC
OnLine SC 1417 wherein the Claim Petition was filed under Section
163-A of the M.V. Act and the compensation was awarded as per the
Second Schedule of the M.V. Act.
b) It is submitted by the learned Advocate for the Claimants that,
the learned Tribunal has rightly considered the evidence on record
and awarded the compensation. No interference was called for in
the impugned judgment and award. In support of his contentions,
he relied on the judgment in United India Insurance Co. Ltd. V/s.
Sunil Kumar and Anr., 2017(13) SCALE 652 wherein it is observed
that, in Claim Petition under Section 163-A of the M.V. Act it is not
open for the insurer to raise any defence of negligence on the part of
the Victim.
3. In Sarla Verma (supra) it is observed that, the principles
relating to determination of liability and quantum of compensation
are different for claims made under Section 163-A of M.V. Act and
claims under Section 166 of M.V. Act. Section 163-A and Second
Schedule in terms do not apply to determination of compensation in
Applications under Section 166. In New India Assurance Company
Limited (supra), the Claim Petition was filed under Section 163-A of
4 fa599.2015.odt
the M.V. Act claiming compensation of Rs.15,00,000/-. The
compensation was considered as per the Second Schedule i.e.
Rs.40,000/- per annum and necessary deductions were made and an
appropriate multiplier was applied and the compensation was
quantified to Rs.4,00,000/- and odd amount. In United India
Insurance Co. Ltd. (supra) it is observed that, it is clear that, the
grant of compensation under Section 163-A of the M.V. Act on the
basis of the structured formula is in the nature of final award and
the adjudication thereunder is required to be made without any
requirement of any proof of negligence of driver/owner of the
vehicle(s) involved in the accident.
4. From the above referred decisions, it is clear that, the
principles in respect of the Claim Petitions under Section 163-A and
166 of the M.V. Act are well settled. The learned Tribunal has not
awarded the compensation as per the structured formula. The
learned Advocate for the Appellant and learned Advocate for the
Claimants have tendered their calculations as per Second Schedule
of the M.V. Act. On going through the calculations submitted by
both the sides, the compensation is determined in the light of
Second Schedule of the M.V. Act, as under:-
Sr. Heads Amount
No.
1 Annual Income of the deceased Rs.40,000/-
2 Amount after applying Rs.6,80,000/-
multiplier of 17 (Rs.40,000/- x 17)
3 Less 1/3 deductions towards Rs.2,26,666/-
personal expenses (Rs.6,80,000/- x 1/3)
4 Amount after 1/3rd deductions Rs.4,53,334/-
5 fa599.2015.odt
5 Funeral expenses Rs.2,000/-
6 Loss of consortium Rs.5,000/-
7 Loss of estate Rs.2,500/-
8 Total amount of compensation Rs.4,62,834/-
(Rs.4,53,334/- + Rs.2,000/-
+ Rs.5,000/- + Rs.2,500/-)
5. In view of the above, the compensation determined by the
learned Tribunal in the impugned judgment and award stands
modified. The Claimants shall be entitled to the amount of
compensation of Rs.4,62,834/- from the Appellant and Respondent
Nos.4 and 5 jointly and severally with the same rate of interest
granted by the learned Tribunal. After the withdrawal of the
amount of compensation along with interest accrued thereon, by
the Claimants out of the amount deposited by the Appellant, the
excess amount, if any, be refunded to the Appellant along with
interest accrued thereon. The Appeal is disposed of in the above
terms with no order as to costs. The Record and Proceedings be sent
back to the learned Tribunal.
(NEERAJ P. DHOTE, J.)
Tambaskar.
Signed by: MR. N.V. TAMBASKAR
Designation: PS To Honourable Judge
Date: 09/04/2026 10:56:32
