New Motor Vehicle Act- Relinquishment of Shares

New Motor Vehicle Act- Relinquishment of Shares

In Renu Rani Shrivastava & Anr. Versus New India Assurance Company Ltd. & Ors, Palash Kumar the deceased was working as Senior Editor in Asian Age, Mumbai. The MACT has awarded compensation of Rs.1,37, 25,000 in the favour of dependants of deceased. While the High Court reduced the compensation from Rs.1,37,25,000 to Rs.1,03,50,000 considering the fact that both the drivers were equally responsible for negligence on their part. 

In an appeal, the Apex Court Bench observed through the submitted evidence that the lorry driver not only drove recklessly but was also negligent while driving and thus collided with Palash Kumar’s (deceased) vehicle. The Apex Court thus set aside the order of the High Court that there was contributory negligence on part of both the drivers. The court also observed that the High Court and the MACT is not justified in deciding the compensation as the compensation is to be computed by adding 40% of the income of the deceased as future prospects.

The one of main contentions of Insurance Company was that wife of deceased has no right to claim compensation from the Insurance Company as she has relinquished her share in favour of her in-laws and has got certain properties in lieu thereof. 

The bench comprising Justice Mohan M. Shantanagoudar and Justice Ajay Rastogi observed ;

That the internal family matters shall not affect the award of compensation by the Court or the Tribunal. The grant by the Motor Vehicle Tribunal or by the Court in respect of accidental death of a person will not be affected by the family affairs inasmuch as the compensation as per law has to be awarded by the court in the favour of the dependants of the deceased.


eStartIndia Team

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