Motor Vehicles Act – Passenger Victims Not Affected by Contributory Negligence Between Drivers; Insurer’s Liability to Pay Compensation Upheld

Case Name: Future Generali India Insurance Company v. Seema and Others

Citation: FAO No. 7231 of 2019

Date of Judgment: 6 January 2020

Bench: Justice Rajiv Narain Raina

Held: The Punjab and Haryana High Court dismissed the insurer’s appeal and affirmed the award of compensation in favour of the claimants. It held that contributory negligence between the drivers of the vehicles involved in the accident cannot diminish the compensation payable to the legal heirs of a deceased passenger. The insurer remains liable to satisfy the award, though it may recover a proportionate share from the other vehicle’s insurer or owner in accordance with law.

Summary: The case arose from a fatal road accident on 01.11.2017, when a Canter carrying several family members collided with a Tipper Truck. A criminal case was registered against both drivers, and charges were framed. The insurer argued that, based on a witness’s admission in cross-examination that both drivers were negligent, the case was one of contributory negligence. It contended that the compensation awarded should be reduced by half. The Court rejected this argument, holding that the deceased was only a passenger and not a driver, and therefore issues of contributory negligence between the two drivers had no bearing on the claimants’ entitlement. The insurer could, however, seek to recover a share from the other vehicle’s insurer or owner but was bound to first satisfy the award in favour of the victims’ family.

Decision: The High Court dismissed the appeal, upheld the Tribunal’s award in favour of the claimants, and clarified that the insurer’s liability to pay full compensation subsists, with liberty to recover an equitable share from the Canter’s insurer and owners.