Motor Accidental Claims Tribunal rejects ‘Drunk driving’ defence, awards Rs 1.23 crore to family of deceased

The insurance company have no right to recover the compensation from any of the respondents, the court said on February 16, 2026.

‘The proof of rash and negligent driving’ 

• It is a settled proposition of law that, in an action founded on the principle of fault liability, the proof of rash and negligent driving of the offending vehicle is sine qua non (an essential condition). 
• Besides, it is evident that FIR was registered and a charge-sheet was filed against the driver after a detailed investigation, and in case of motor vehicular accident claims, the contents of the charge-sheet are relevant in evidence.
• The postmortem report reflects that the deceased was found to have sustained multiple antemortem injuries, and his death was caused by shock and haemorrhage as a result of antemortem injuries
• The petitioners have been able to prove on the basis of preponderance of probabilities (more likely than not to be true) that the accident had occurred due to the rash and negligent driving of the offending vehicle by the driver.

Quantum of compensation

• The petitioners are entitled to compensation in this case.
• The MACT is to hold an enquiry to determine the amount of compensation to be just and reasonable.
• The amount of compensation should be fair and reasonable, neither excessively high nor unfairly low.
• There are four claimants in this case, who are the wife, two minor children and the mother of the deceased. Hence, considering the four dependents upon the deceased, 1/4 of the income of the deceased is to be deducted towards his personal living expenses.
• In view of the settled guidelines, by adding the prospects at 30 per cent to the annual income of the deceased, Rs 9,14,327, applying the multiplier of 18, after making a deduction of 1/4 of the income of the deceased, the loss of dependency is computed as Rs 1,21,12,978.
• In reference to the case Pranya Sethi & Others 2017, a compensation of Rs 40,000, Rs 15,000 and Rs 15,000 respectively has been fixed on account of loss of consortium, loss of estate and funeral expenses and further, it is required to be enhanced at 10 per cent every three years.
• Therefore, a compensation of Rs 44,000, Rs 16,500  and Rs 16,500 respectively on account of loss of consortium, loss of estate and funeral expenses is required to be granted.
• The petitioners shall also be entitled to interest at 7 per cent per annum on the award amount from the date of filing of the claim petition till realisation.

‘The insurance company cannot avoid its statutory liability’

• The ratio decidendi (the reason for the decision)of the Pearl Beverages case, on which the insurance company relied, is not applicable in this case, and the insurance company cannot avoid statutory liability. 
• The insurance company has not presented any evidence to prove that immediately before the accident in question, the driver had consumed alcohol.
• The opinion of the doctor in the MLC  of the driver that he was under the influence of alcohol is primarily an opinion that is not admissible in evidence. 
• Therefore, it is held that the insurance company shall not have any right to recover the award amount from any of the respondents. 

Background: Willful breach of the insurance policy

• On May 30, 2022, the deceased was going to his home from the office by motorcycle at normal speed when the offending vehicle, at a very high speed, negligently hit the deceased’s vehicle.
• As a result of the impact, the deceased sustained grievous injuries and was immediately taken to the hospital, where he was declared dead by the doctor.
• On May 31, 2022, an FIR was registered under sections of the IPC, and a charge sheet was filed by the investigating officer against the driver.
• The deceased was working as a foreman with the Aeronautical Quality Assurance Wing, Ministry of Defence, Government of India, with a salary of Rs 86,527 per month.
• The petitioners (wife, minor son, minor daughter and mother), on behalf of the deceased, claimed compensation of Rs 1.5 Crores along with interest at 12 per cent per annum from the date of the accident till its realisation.
• The written statement on behalf of the driver stated that the deceased was himself responsible for the accident, and the driver did not cause the alleged accident.
• The insurance company, besides the general defences, took the statutory defence that the driver of the offending vehicle was not holding a valid and effective driving license at the time of the accidentand was under the influence of alcohol
• The insurance company stated that the insured had committed a willful breach of the terms and conditions of the insurance policy and, therefore, the insurance company was not liable to pay any compensation in the said case.
• On August 22, 2024, all the required evidence by the petitioner was submitted.

Awarded Compensation

• The tribunal awards a compensation of Rs 1,23,22,000 along with interest at 7 per cent per annum from the date of filing of this claim petition till realisation in favour of the petitioners to be paid by the insurance company.
• If the tribunal ordered any temporary payments during the case, that money will be subtracted from the final settlement. Also, any interest on that temporary money will be waived, as per the tribunal.
• The insurance company is directed to deposit the amount within 30 days from this date into the account of the petitioner, the court said on February 16, 2026.