Page 56 - Insurance Times May 2023

of the deceased, cost of living, and other relevant factors. (3) When an award is made under this section, the person
The Hon'ble Supreme Court elaborated on the term of "just who is required to pay any amount in terms of such
compensation" under Section 168 of the Motor Vehicles Act. award shall, within thirty days of the date of announcing
Section 168 of the Motor Vehicles Act reads as under: the award by the Claims Tribunal, deposit the entire
(1). Award of the Claims Tribunal - On receipt of an amount awarded in such manner as the Claims Tribunal
application for compensation made under section 166, may direct.
the Claims Tribunal shall, after giving notice of the
The Supreme Court held that the High Court was not right
application to the insurer and after giving the parties
in deducting 2/3rd of the deceased's total income towards
(including the insurer) an opportunity of being heard,
his personal expenses and was of the view that a deduction
hold an inquiry into the claim or, as the case may be,
of 40% would be appropriate for quantifying compensation.
each of the claims and, subject to the provisions of
In the opinion of the Supreme Court, the claimants were
section 162 may make an award determining the
entitled to a total compensation of Rs 28,00,000/- which was
amount of compensation which appears to it to be just
higher than the amount claimed by the claimants/
and specifying the person or persons to whom
dependents of the deceased. The Hon'ble Supreme Court
compensation shall be paid and in making the award
relied upon the judgements of Nagappa v. Gurudayal Singh1,
the Claims Tribunal shall specify the amount which shall
Magma General Insurance v. Nanu Ram2, and Ibrahim v.
be paid by the insurer or owner or driver of the vehicle
Raju3; the Court observed, "There is no restriction that the
involved in the accident or by all or any of them, as the
Court cannot award compensation exceeding the claimed
case may be; provided that where such application
amount, since the function of the Tribunal or Court under
makes a claim for compensation under section 140 in
Section 168 of the Motor Vehicles Act, 1988 is to award 'just
respect of the death or permanent disablement of any
compensation'".
person, such claim and any other claim (whether made
in such application or otherwise) for compensation in The court observed that the Motor Vehicles Act is a
respect of such death or permanent disablement shall beneficial and welfare legislation. A 'just compensation' is
be disposed of in accordance with the provisions of one in which the compensation awarded is reasonable on
Chapter X. the basis of evidence produced on record. It cannot be said
to have become time-barred. The court further observed
(2) The Claims Tribunal shall arrange to deliver copies of
the award to the parties concerned expeditiously and that there is no need for a new cause of action to claim an
in any case within a period of fifteen days from the date enhanced amount. The courts are duty bound to award just
of the award. compensation."

SC sets aside SAT's order against IRDAI
The Supreme Court has set aside the order of a Securities Appellate Tribunal (SAT) where the tribunal had made
strong comments about the insurance regulator in a dispute involving insurance brokers. The apex court, in its order,
said that it failed to find any document that established that a bribe was paid. The tribunal had issued an order on
an appeal by UK-based insurance broker Atkins Special Risks.
Atkins had said that it had been providing reinsurance cover to a private company Jagson International between
2002-12 and that the chairman Jagdish Gupta had diverted the business to Marsh in return for kickbacks. Atkins had
approached the tribunal after the insurance regulator Irdai disposed of its complaint that Marsh had poached busi-
ness unlawfully. Earlier, the tribunal had observed that the complaint showed that the appellant had relied on docu-
mentary evidence in support of the contention that Gupta had sought bribe and was bribed by the officers of Marsh
for diverting their reinsurance business.
Not only had the SAT overturned IRDAI's order, it had also passed strong comments against the regulator's member
P J Joseph and opined that the order issued by Joseph amounted to aiding and abetting corruption. Last year, the SC
had expunged the harsh words against Joseph from SAT's order while admitting an appeal. Allowing the appeal in its
latest order, the SC said that the order of the IRDAI passed on January 9, 2018, is sustained.
"On going through the materials made available before us at the time of hearing, we are of the opinion that there
was no occasion for interfering with the order of the Irdai by the tribunal," the order said.

50 May 2023 The Insurance Times