Bombay HC Enhances Compensation In 1996 Fatal Road Crash; Directs Insurer To Pay ₹10 Lakh, Recover From Truck Owner Later

Mumbai: Nearly three decades after a fatal road accident claimed the life of a 30-year-old man, the Bombay High Court has enhanced the compensation awarded to his family by Rs 6.34 lakh, despite no appeal filed by the claimants seeking enhancement.

The court has directed United India Insurance Company Ltd to pay the amount, Rs 10 lakh, with interest. The insurer has been granted liberty to recover the amount from the estate of the deceased vehicle owner.

Deepak @ Dilip Govind Kachare was riding pillion on a motorcycle on the Pune-Solapur highway on June 25, 1996, when a truck rammed the two-wheeler from behind. He and his friend, the rider, died on the spot. Kachare was survived by his wife, three young children aged four, two and nine months, and his elderly mother.

In 2006, the Motor Accident Claims Tribunal (MACT) had awarded Rs 3.66 lakh to the family, holding both the truck’s owner Balasaheb Ghule and the insurer, United India Insurance Company Limited, jointly and severally liable. The insurer appealed the decision. The family did not approach HC seeking enhancement of the compensation.

However, the High Court noted that even in such a scenario, the Tribunal and appellate courts are empowered to ensure “just compensation.” Justice Shyam Chandak, in his order dated July 2, said, “The Act is a welfare legislation. Just compensation cannot be denied merely because no separate appeal or cross-objection has been filed by the claimants.”

The court noted that the tribunal had erred in deducting 25% of the amount for contributory negligence, despite the deceased being a pillion rider. It also observed that no amount had been awarded for future prospects. “This resulted in awarding lesser compensation, which is erroneous,” said the judge.

Although the insurer argued it should be exonerated as the truck’s driver held a fake licence, the court ruled that the insurer must pay the full amount, Rs 10,18,560, along with 7.5% interest from the date of the claim (August 27, 1996) and recover it from the deceased owner’s estate. “This is a fit case to pass the ‘pay and recover’ order,” the court held.

The insurer has been directed to deposit the amount within four months. The tribunal will inform the claimants and oversee disbursal, subject to any deficit court fees being paid.