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1999 DIGILAW 222 (PAT)

New India Assurance Co. Ltd. v. Kedar Prasad Rai

1999-03-24

G.S.SHARMA

body1999
Order Heard the parties. On 10.8.1990 Ranju Kumari a six years old child died in a motor accident. While going to the Flour Mill with her elder brother Arvind Kumar, she was dashed by a Tata Maxi-407, bearing registration no. BEE-1284, which ultimately fell into a ditch. It was insured with New India Assurance Co. Ltd. Father-respondent no. 1 herein filed claim Case No. 14 of 1990 for compensation under the Motor Vehicles Act. The Tribunal by the impugned judgment and award directed the Insurance Company to pay a sum of Rs. 1 lac as compensation plus 10 per cent interest and costs to the claimant. It was found that the accident took place on account of rash and negligent driving of the vehicle, wherein Ranju Kumari died. It was held that the claimant was entitled to get total compensation under different heads a sum of Rs. 1 lac. Out of the said amount Rs. 25000/- was already paid to the claimant by way of interim compensation. Practically in a case of motor accident, where death of a minor child had occurred, compensation is to be awarded on lump sum basis. Considering status of the parties, financial condition of the family of which the deceased belonged to and imagination of his/her shining in future life. Admittedly the minor girl was only six years had no• income and so assessment of compensation can not be done on multiplier method. 2. To me it appears that the Tribunal committed serious error of law in awarding the lump sum compensation without any basis whatsoever and such amount should not have been in the form of windfall or gain to the father of the deceased girl. Looking to the intention of the Parliament in the Act that the death of a person in case of 'no fault liability' compensation should not be less than Rs. 50,000/-, it can be taken as good guidance to determine the quantum of compensation in case of death of a child. 3. Considering all aspects in the present case, in my view, a sum of Rs. 50,000/- would be a proper assessment of the compensation on lump sum basis to be paid to the claimant-respondent no. 1 herein. Hence the impugned judgment is modified and quantum of total compensation assessed by Tribunal to the tune of Rs. 1 lac is reduced to Rs. 50,000/- only. 50,000/- would be a proper assessment of the compensation on lump sum basis to be paid to the claimant-respondent no. 1 herein. Hence the impugned judgment is modified and quantum of total compensation assessed by Tribunal to the tune of Rs. 1 lac is reduced to Rs. 50,000/- only. It is stated that Rs. 25000/- by way of interim compensation has already been paid. Hence the said amount is to be deducted. Further a sum of Rs. 25000/- which has been deposited by the appellant in this Court for the purpose of this appeal vide Challan No. 191 dated 20.8.1998 under proviso to Section 173 of the Act is permitted to be withdrawn by the claimant-respondent no.1 on proper verification and in accordance with law. Thereafter the claimant-respondent no. 1 shall only be entitled to get interest at the rate of 12% (sic) per annum from the date of claim application till today. 4. This appeal is, accordingly, disposed of.