The Madras High Court has observed that the Motor Vehicle Act is beneficial legislation and should be interpreted in favor of affected persons.
Justice R. Subramanian and Justice R. Sakthivel subsequently increased the compensation awarded to the family of a deceased minor boy who died in an accident involving vehicles driven by minors.
The boy’s family had appealed to the court to enhance the compensation awarded by the Chief Judge of the Motor Accident Claims Tribunal, Chennai, while the insurance company sought to have the award set aside.
The deceased was riding as a pillion passenger on a motorcycle with his friends when another motorcycle, ridden recklessly and negligently, collided with them. At the time of the accident, the deceased was 17 years old and a second-year student pursuing a Diploma in Electrical and Electronics Engineering at Panimalar Polytechnic College. The family sought compensation of Rs. 50,00,000 with 12% interest.
Conversely, the insurance company opposed the claim, arguing that the motorcycles involved in the accident were ridden by minors without valid driving licenses. The company contended that the owners had violated the terms and conditions of the insurance policy by allowing minors to ride the motorcycles. Additionally, the company argued that the compensation sought was exorbitant and lacked any legal, equitable, or reasonable basis.
The tribunal observed that, since the vehicles were ridden by minors, the terms and conditions of the policy had been violated. Consequently, the tribunal held that the insurance company was liable to pay the compensation but could later recover 50% of the amount from each of the vehicle owners.
The court noted that since the deceased was covered under the insurance policy at the time of the accident, the tribunal had correctly concluded that the insurance company was liable to pay the compensation amount and subsequently recover it equally from the vehicle owners.
However, the court decided to adjust the amount of compensation awarded, including considerations for the deceased’s future prospects. The court directed the insurance company to deposit the revised compensation amount, along with interest, to the credit of the case on the file of the Chief Judge, MACT, Court of Small Causes, Chennai, within a period of eight weeks.
