Family Of Man Killed In Two-Jeep Crash Can Recover Full Compensation From One Insurer: Orissa HC

The claimants sought compensation under Section 166 of the Motor Vehicles Act, 1988, following the death of their sole breadwinner in a collision involving two Commander jeeps.

The Motor Accidents Claims Tribunal awarded ₹1,94,000 with interest at 6% per annum and directed the appellant insurer to pay the award.

The insurer appealed, principally contending that both vehicles were negligent and that it should bear only 50% of the liability.

The appeal was filed 20 days late, and the insurer sought condonation of delay under Section 5 of the Limitation Act, 1963.

Section 5 of the Limitation Act, 1963 permits condonation of delay where the applicant establishes “sufficient cause”; that expression is to be applied pragmatically, with a liberal approach appropriate to a short delay where the circumstances do not indicate negligence or apathy.

Under Section 173(1) of the Motor Vehicles Act, 1988, an aggrieved party may appeal an award of the Claims Tribunal.

The Court applied Khenyei v. New India Assurance Co. Ltd., (2015) 9 SCC 273: in cases of composite negligence, the claimant may recover the entire compensation from any one of the joint tortfeasors because their liability is joint and several; apportionment is not permissible as against the claimant. Any determination of inter se responsibility is relevant to recovery between tortfeasors, subject to the conditions stated in that decision.

The Court accepted the insurer’s explanation that late processing of the file caused the 20-day delay and found no indication of deliberate default or absolute apathy; given the short duration, it condoned the delay.

On the merits, the insurer’s composite-negligence argument did not absolve it from payment of the full award to the claimants: under Khenyei, the claimants could recover the whole compensation from the insurer of one joint tortfeasor, while any inter se recovery remained a matter between the tortfeasors.

The Court also found no basis to disturb the Tribunal’s assessment of compensation, which the claimants had not challenged.

It directed the insurer to pay the award and accrued interest within eight weeks; if the amount had already been deposited, the insurer could appropriate it toward payment to the claimants, with the statutory deposit and accrued interest to be refunded upon proof of payment.

No order as to costs was made.