MACT Presiding Officer Sanjay Sharma asked the National Insurance Company Ltd, insurer of the offending vehicle, to pay Rs 16.06 lakh to the family of Trilok Puri resident Ram Kishore who died in November 2015.
"It is proved that the man died in a motor vehicular accident caused by rash and negligent driving of the offending vehicle (car) by the driver," the tribunal said.
It asked the company to compensate the victim's family after noting that the offending vehicle had not breached any terms and conditions of the insurance policy.
The tribunal noted that Kishore, a tailor by profession, is survived by his wife and four children.
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In the plea seeking compensation, the family alleged that the cycle which Kishore was riding was hit from behind by a rashly driven private cab at Vasundhara in Uttar Pradesh on November 8, 2015.
The cab driver claimed that the accident had taken place due to negligence of the victim who was riding his bicycle on wrong side and suddenly came in front of his vehicle.