Authority: High Court of Karnataka at Bengaluru

Order Date: 9 July 2026

Case Overview

  • Parties: Appellant – The Manager, Cholamandalam MS GIC Ltd (insurer). Respondents – 1. Puttarajamma (widow, ~47 yrs), 2. Yogesha (son, ~29 yrs), 3. Ambarisha (son, ~27 yrs) – claimants; 4. K. Somanna (driver, ~32 yrs); 5. Prabhakara (owner, ~31 yrs).
  • Nature of Proceeding: Miscellaneous First Appeal No. 799 of 2023 under Section 173(1) of the Motor Vehicles Act against the Motor Accident Tribunal (MAT) award dated 05‑07‑2022 in MVC No. 893/2015.
  • Accident Details: Road traffic accident on 16‑11‑2014 involving a Tata Ace (Regn.No. KA‑09‑B‑5127). The deceased, Chaluvaiah, was transporting vegetables he cultivated, traveling in the goods vehicle as the owner of the goods.
  • Tribunal Award: Compensation under heads – Loss of dependency (Rs 8,23,000), Loss of estate (Rs 15,000), Loss of consortium (Rs 1,20,000), Funeral expenses (Rs 15,000); Total: Rs 9,73,000. Interest @ 6% p.a. from date of petition till realization was also awarded.
  • Appellant’s Contentions: Deceased was an unauthorized passenger; policy excludes such passengers. Vehicle lacked a valid permit; owner (Respondent 5) was charged under Sections 3(1) r/w 181 of the Motor Vehicles Act. Hence, insurer should not be liable and should recover from the vehicle owner.
  • Respondents’ Contentions: Deceased was an agriculturist carrying his own vegetables; he was the owner of the goods and thus a legitimate occupant. Vehicle was insured with the appellant; driver possessed a valid licence.
  • Evidence: Charge sheet Ex.P8 shows Respondent 4 (driver) charged under IPC §§ 279, 337, 338, 304A and Motor Vehicles Act §§ 187, 3(1), 181, 66(1), 192(A); Respondent 5 (owner) charged under MV Act § 5 r/w 180 for allowing the vehicle to run without a permit. FIR Ex.P2 confirms deceased was transporting his own vegetables.

Final Outcome

  • The appeal is allowed in part.
  • The liability imposed on the insurer to pay the compensation with interest is set aside.
  • The insurer shall pay the compensation with interest to the claimants and recover the same from the vehicle owner (Respondent 5).
  • All other findings of the Tribunal remain undisturbed.
  • The office is directed to transmit the amount in deposit to the Tribunal.

Topics: Motor Accident Claim, Insurance Liability, Court Judgment