Two Motorbike Crash Victims Get ₹25,000 More Each, While Karnataka HC Leaves Bus Owner Solely Liable After Premium Cheque Bounced

On 19 December 2018, the claimants were travelling on a motorcycle when it was struck by a bus; one claimant was the rider and the other the pillion passenger.

Both sustained injuries and sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The insurer contended that the premium cheque had been dishonoured, the policy cancelled, and the owner notified; the Tribunal consequently held that the policy was not in force and imposed liability on the owner alone.

It awarded ₹3,74,000 to the pillion passenger and global compensation of ₹25,000 to the rider.

The claimants appealed, challenging the insurer’s exoneration and seeking enhancement.

The appeals were brought under Section 173(1) of the Motor Vehicles Act, 1988, and the underlying compensation claims were made under Section 166.

The Court applied the Tribunal’s finding that the insurance policy was not in force because the premium cheque had been dishonoured, and did not disturb the resulting allocation of liability to the vehicle owner.

No precedent or further statutory rule was cited in the judgment.

The Court declined to interfere with the Tribunal’s finding on insurance liability and answered the first issue in the negative.

On compensation, it considered the rider’s fractures and medical evidence and awarded an additional global sum of ₹25,000.

For the pillion passenger, it considered the diagnosed head injuries, wound certificate, discharge summaries and 17 days of inpatient treatment, and likewise awarded an additional global sum of ₹25,000.

The insurer’s exoneration was left undisturbed, and the owner alone remained liable.

Each claimant was awarded an additional ₹25,000, carrying interest at 6% per annum from the date of petition until realisation.

The owner was directed to deposit the compensation with accrued interest before the Tribunal within eight weeks of receiving the certified judgment; modified awards were to be drawn.