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2016 DIGILAW 481 (JK)

United India Insurance Co. Ltd. v. Meera Devi

2016-09-29

R.SUDHAKAR

body2016
JUDGMENT : R. Sudhakar, J. 1. The Insurance Company as well as Claimants have filed Appeal and Cross Appeal against the award dated 6.1.2006 passed by the Motor Accidents Claims Tribunal, Jammu. It is a case of fatal accident. Common facts on both the Appeals are as follows: "Accident happened on 30.3.2003. Devindra Thakur, Havaldar Driver in the Army was driving One Ton vehicle. This vehicle was proceeding from Jammu to Nowshera. The offending Vehicle Bus No. JKS-1453 driven in a rash and negligent manner by its driver hit the Army Vehicle, as a consequence thereof, the Army Vehicle turned turtle and in the accident Havaldar Devendra Thakur died on spot. Private Bus was insured with the Appellant-Insurance Company." 2. The finding of negligence on the part of the driver of the private Bus insured with the Appellant-Insurance Company and the liability of the owner and the Insurance Company to compensate the claimant is not in dispute. The only issue raised in the appeal on behalf of the Insurance Company is on the quantum of compensation and in Cross-Appeal, the claimants seek enhancement of the compensation. 3. Deceased Havaldar Devendra Thakur was claimed to be 43 years old at the time of accident and his wife 39 years old, daughter 19 and son 17 years old and the father 65 years, presently who is no more were the claimants and they have claimed Rs. 40,00,000 (Rupees forty lac only) as compensation. 4. In support of the claim for compensation, following witnesses are examined on behalf of the claimants: "(i) Meera Devi-claimant; (ii) Havaldar Ram Paul; (iii) Havaldar Kambli." Exhibit EXPW-KD relating to salary certificate and EXPW K1 relating to the date of Birth of the deceased Havaldar Devendra Thakur were filed. Neither any witness has been examined nor document has been filed on behalf of Insurance Company. 5. The Tribunal fixed the income of the deceased at Rs. 10,200 and by adopting multiplier of 12, granted the following amount as compensation along with interest @ 6% per annum from, the date filing of the claim petition till the payment is made. The award was passed on 6.1.2006. 1. For loss of dependency. Rs. 15,94,944/- 2. For loss of consortium. Rs. 15,000/- 3. For loss of Estate. Rs. 15,000/- 4. For funeral expenses. Rs. 3,000/- Total Rs. 16,27,944 6. The award was passed on 6.1.2006. 1. For loss of dependency. Rs. 15,94,944/- 2. For loss of consortium. Rs. 15,000/- 3. For loss of Estate. Rs. 15,000/- 4. For funeral expenses. Rs. 3,000/- Total Rs. 16,27,944 6. The Appellant-Insurance Company primarily pleads that the manner in which calculation was made for arriving at the compensation under the loss of pecuniary benefits is faulty, whereas, it should be in accordance with the decision rendered by the Hon'ble Apex Court incase titled Reshma Kumari and Others v. Madan Mohan and Another, (2013) II ACC 907 (SC) : (2013) VII SLT 489 : 2013 (2) Law Herald (SC) 1583. There is no dispute on age. 7. The error pointed out by the Insurance Company is that while calculating the future prospects considering the age of the deceased as 43 years it should be 30% whereas the Tribunal erroneously is taken as 50%. He fairly submits that the multiplier of 12 is wrongly adopted by the Tribunal whereas it should be 14 in terms of the decision rendered by the Hon'ble Apex Court in case titled Sarla Verma and Ors. v. Delhi Transport Corporation & Anr., (2009) III ACC 708 (SC) : (2009) VI SLT 663 : (2009) 162 DLT 278 (SC) : (2009) 6 SCC 121 . Fairness on the part of Insurance Company is appreciated. 8. Insofar as the Cross Appeal is concerned, on behalf of learned Counsel for the claimants pointed out that it is true that 30% future prospects should be awarded and not 50% and if 14 as multiplier is adopted, the claimant will be entitled to higher compensation besides meager amount has been granted for loss of consortium and no amount has been given to the children for loss of love and affection. 9. Taking note of the above plea, the award of the Tribunal which is not in consonance with the decisions rendered in Reshma Kumari's as well as Sarla Verma's cases (supra), considering the age of the deceased as 43 years and his admitted income as Rs. 10,200 if 30% future prospects is added it will come to Rs. 13,231 of which 1/4th should be deducted for personal expenses of the decease, i.e. minus Rs. 3,307 and the monthly pecuniary benefits comes to Rs. 9,924. Adopting 14 multiplier, the annual Pecuniary loss comes to (Rs. 9,924 x 12 x 14) = Rs. 16,67,232. 10,200 if 30% future prospects is added it will come to Rs. 13,231 of which 1/4th should be deducted for personal expenses of the decease, i.e. minus Rs. 3,307 and the monthly pecuniary benefits comes to Rs. 9,924. Adopting 14 multiplier, the annual Pecuniary loss comes to (Rs. 9,924 x 12 x 14) = Rs. 16,67,232. Accordingly the claimant should be entitled to Rs. 16,67,232. For loss of consortium Rs. 15,000 is granted. Keeping in mind the age of the deceased and the age of widow a sum of Rs. 30,000 is granted towards the loss of consortium. For loss of love and affection for two children, as sum of Rs. 35,000 each is granted, totaling Rs. 70,000. Loss of Estate Rs. 25,000 and for funeral expenses Rs. 15,000 is granted. Considering the date of accident and the date of award, interest at the rate of 7.5% per annum is granted for the enhanced award. 10. The award of the Tribunal is modified and the claimants are entitled to the following enhanced compensation along with interest at the rate of 6% per annum from the date filing of the claim petition till the payment is made:- S. No. Heading Award of the Tribunal Modified award 1. For loss of Dependency Rs. 15,94,944/- Rs. 16,67,232/- 2. For Consortium Rs. 15,000/- Rs. 30,000/- 3. For loss of Estate Rs. 15,000/- Rs. 25,000/- 4. For Funeral Expenses For loss of love and affection Rs. 3,000/- Nil Rs. 15,000/- Rs. 70,000/- Total Rs. 16,27,944/- Rs. 18,07,232/- 11. Learned Counsel appearing for the Appellant-Insurance Company seeks four weeks' time to deposit the enhanced award and it is granted. Appeal and Cross appeal stand disposed of in the above terms enhancing the award of the Tribunal.