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2017 DIGILAW 17 (JK)

United India Insurance Co. v. Darshna Devi

2017-01-31

RAMALINGAM SUDHAKAR

body2017
Judgment CondI. No.141/2016 1. In view of the reasons assigned, a good ground is made out for condoning the delay of 55 days in preferring the appeal. Delay is, accordingly, condoned and appeal is taken on board. 2. Condonation application disposed of. 3. Registry to register and number the Appeal. CIMA No.27/2017 4. The appellant-Insurance Company is on appeal challenging the award dated 06.06.2016 passed by the Motor Accident Claims Tribunal, Jammu. 5. It is a case of fatal accident. The deceased-Sanjay Gupta alias Rajesh, aged 35 years at the time of accident (38 years as per the postmortem report) died in the accident which happened on 01.12.2008. On his death, his widow, aged 29 years two minor daughters aged 9 and 7 years and one son, aged 2 ½ years made a claim before the Tribunal for compensation. 6. The Tribunal fixed the Income of the deceased- Sanjay Gupta at Rs.6000/- and on the plea that the deceased was working as Accountant cum Salesman added 50% for calculating the amount of income i.e., Rs. 6000 + 3000 = Rs. 9000/- per month. The Tribunal deducted 1/4th towards personal expenses of the deceased and by adopting the multiplier of 16, granted the compensation along with interest @ 9% from the date of institution of the petition till realization, under the following heads:— 1. Loss of Dependency Rs. 14,56,000/- 2. Funeral Expenses Rs. 25,000/- 3. Loss of Estate Rs. 5,000/- 4. Loss of Consortium Rs. 1,00,000/- 5. Loss of love and care Rs. 1,00,000/- 6. Expenses on treatment Rs. 50,000/- 7. Transportation Expenses Rs. 14,000/- Total Rs. 17,50,000/- 7. In appeal it is pleaded that the enhancement of 50% to the wages for a person who is not a regular employee is bad. It is pleaded that considering the age of the deceased-Sanjay Gupta multiplier adopted by the Tribunal is on the higher side. Further it is pleaded that even as per the calculation of the Tribunal the excess amount has been granted on account of pecuniary loss. 8. In this case admittedly, the deceased was working as Accountant cum Salesman in a Private Firm, therefore, he was not a regular employee. There is no specific evidence to show that there is prospect of higher income in the future. However, taking note of the occupation income of Rs. 8. In this case admittedly, the deceased was working as Accountant cum Salesman in a Private Firm, therefore, he was not a regular employee. There is no specific evidence to show that there is prospect of higher income in the future. However, taking note of the occupation income of Rs. 8000/- per month can be fixed because deceased-Sanjay Gupta was supporting a large family consisting of wife and three minor children. From this 1/4th has to be deducted towards personal expenses of the deceased. The pecuniary loss to the dependants will be Rs. 6000/- per month. The multiplier in this case would be 15 in terms of para 42 of the decision of Sarla Verma and Ors. v. Delhi Transport Corporation and Anr., (2009) 6 SCC 121 . 9. The Tribunal has granted excess due to the above error. Therefore, claimants would be entitled to Rs. 6000 x 12 x 15 = Rs. 10,80,000/- as compensation. An amount of Rs. 25,000/- is granted for funeral expenses and Rs. 1,00,000/- on account of loss of Consortium. The amount granted towards expenses for treatment, is confirmed as not disputed. For loss of love and affection to the three minor children amount is enhanced to Rs. 1,50,000/- from Rs. 1,00,000/- as it is meager. For loss of estate compensation is enhanced to Rs. 10,000/-. The amount granted on account of Transportation expenses is not disputed and the same is confirmed. 10. The interest granted by the Tribunal at 9% cannot be justified. Accident in the instant case happened in the year 2008. The appropriate interest will be 7.5% per annum and hence interest stands reduced. 11. The award of the Tribunal is thus modified and the claimants are entitled to the following compensation, with interest at the rate of 7.5% per annum. S. No. Heading Award of the Tribunal Modified award 1. Loss of dependency Rs. 14,56,000/- Rs. 10,80,000/- 2. Funeral expenses Rs. 25,000/- Rs. 25,000/- 3. Loss of Estate Rs. 5,000/- Rs. 10,000/- 4. Loss of Consortium Rs. 1,00,000/- Rs. 1,00,000/- 5. Loss of Love and Care Rs. 1,00,000/- Rs. 1,50,000/- 6. Expenses on treatment Rs. 50,000/- Rs. 50,000/- 7. Transportation Expenses Rs. 14,000/- Rs. 14,000/- Total Rs 17,50,000/- Rs. 14,29,000/- 12. Appeal is allowed as above. 13. Appellant-Insurance Company is directed to deposit the entire awarded amount along with interest within eight weeks, if not already deposited. 1,00,000/- Rs. 1,00,000/- 5. Loss of Love and Care Rs. 1,00,000/- Rs. 1,50,000/- 6. Expenses on treatment Rs. 50,000/- Rs. 50,000/- 7. Transportation Expenses Rs. 14,000/- Rs. 14,000/- Total Rs 17,50,000/- Rs. 14,29,000/- 12. Appeal is allowed as above. 13. Appellant-Insurance Company is directed to deposit the entire awarded amount along with interest within eight weeks, if not already deposited. On such deposit, a sum of Rs. 2,50,000/- each ( Rupees two lacs and fifty thousand) shall be kept in fixed deposit in the name of minor children till they attain the age of majority. The balance amount shall be released in favour of the claimant-widow.