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2018 DIGILAW 2317 (MAD)

Liberty Videocon General Insurance Company Limited v. Theerthan

2018-08-01

KRISHNAN RAMASAMY, N.KIRUBAKARAN

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JUDGMENT : N. KIRUBAKARAN, J. 1. The appeal has been preferred by the insurance company, against the award of Rs. 17,42,000/- for the death of one Pachaiyammal, aged about 45 years, self employed, allegedly earning about 15,000/- per month, in the accident, which occurred on 17.12.2015, when she was walking on Trichy to Chennai National Highway and hit down by the lorry belonging to the 7th respondent, insured with the appellant/insurance company. 2. Heard, Mr. M.B. Raghavan, learned counsel appearing for the appellant. He would submit that in the absence of any proof regarding income, the Tribunal erroneously determined the monthly income at Rs. 9,000/- and added 30% towards future prospects, whereas only 25% has to be added. Further, he would submit that as per the Constitution Bench's judgment of the Honourable Apex Court in National Insurance Company Ltd. vs. Pranay Sethi and Others, 2017 (2) TNMAC 609 (SC), only Rs. 40,000/- has to be added towards loss of consortium, whereas the Tribunal awarded a sum of Rs. 50,000/-. Hence, he seeks for reduction of compensation. 3. A perusal of the records would show that the deceased is said to have worked as a Coolie and earned Rs. 15,000/- per month. However, the Tribunal in the absence of any proof rightly determined the monthly income at Rs. 9,000/- notionally, which is inconsonance with judgment of the Honourable Supreme Court delivered in Syed Sadiq vs. United India Insurance Company, 2014 (1) TNMAC 459. In the referred judgment, the Hon'ble Supreme Court, fixed the monthly income at Rs. 6,500/- for a vegetable vendor, who sustained injuries in the accident which occurred in the year 2008 whereas in the present case, the accident occurred on 17.12.2015. In view of inflation and consumer price index, Rs. 9,000/- determined by the Tribunal is justified. 4. The contention made by the learned counsel for the appellant that 30% should not have been added towards future prospects and only 25% has to be taken towards future prospects is justified. Therefore, this Court adds only 25% towards future prospects. After adding 25% towards future prospects, the monthly income would be at Rs. 11,250/- (Rs. 9000/- + 25% of Rs. 9000/-). 5. The size of the family is six. Therefore, this Court adds only 25% towards future prospects. After adding 25% towards future prospects, the monthly income would be at Rs. 11,250/- (Rs. 9000/- + 25% of Rs. 9000/-). 5. The size of the family is six. As per the judgment of the Honourable Supreme Court in Sarla Verma and Others vs. Delhi Transport Corporation and Another, 2009 (2) TNMAC 1 (SC), 1/5th has to be deducted towards personal expenses, whereas the Tribunal wrongly deducted 1/4th. After deducting 1/5th towards personal expenses, the monthly contribution would be at Rs. 9,000/- (Rs. 11,250/- (-) 1/5th of Rs. 11,250/-) 6. The age of the deceased is 45 years, as per Ex.P.2-Post mortem certificate and the appropriate multiplier of 14 was rightly adopted by the Tribunal. Hence, the same is confirmed. Therefore, applying the said multiplier, the loss of income would be at Rs. 15,12,000/- (Rs. 9,000/- x 12 x 14). 7. Loss of consortium: The Tribunal awarded a sum of Rs. 50,000/- under this head, which is contrary to the Constitution Bench's judgment of the Honourable Apex Court in National Insurance Company Limited vs. Pranay Sethi and Others, 2017 (2) TNMAC 609 (SC). Hence, the same is reduced to Rs. 40,000/-. 8. Loss of love and affection: The Tribunal awarded a sum of Rs. 1,50,000/- under this head to claimants 2 to 6. The same is confirmed. 9. Funeral expenses: The Tribunal awarded a sum of Rs. 25,000/- under this head. The same is reduced to Rs. 15,000/- 10. Transportation: The Tribunal awarded a sum of Rs. 5,000/- under this head. The same is enhanced to Rs. 10,000/- 11. Loss of estate: No amount was awarded by the Tribunal, under this head. Hence, this Court awards a sum of Rs. 15,000/- under this head:- Head Amount Total loss of income Rs. 15,12,000 Loss of consortium Rs. 40,000 Loss of love and affection Rs. 1,50,000 Funeral expenses Rs. 15,000 Transportation charges Rs. 10,000 Loss of estate Rs. 15,000 Total Rs. 17,42,000 12. Hence, the total compensation payable in this case is Rs. 17,42,000/-. Therefore, the Tribunal's award of Rs. 17,42,000/- is confirmed in the above manner. 13. The interest awarded by the Tribunal at the rate of 7.5% per annum is confirmed and the ratio fixed by the Tribunal in respect of the shares of the claimants is also confirmed. 14. Hence, the total compensation payable in this case is Rs. 17,42,000/-. Therefore, the Tribunal's award of Rs. 17,42,000/- is confirmed in the above manner. 13. The interest awarded by the Tribunal at the rate of 7.5% per annum is confirmed and the ratio fixed by the Tribunal in respect of the shares of the claimants is also confirmed. 14. The appellant/Insurance Company is directed to deposit the entire award amount, with interest and costs, as per the award passed by this Court, after deducting the amount already deposited, if any, within a period of six weeks from the date of receipt of a copy of this order. On such deposit being made, the Tribunal is directed to transfer the shares of claimants 1 to 4 to their respective bank accounts, through RTGS, within a period of one week thereon. As far as 5th and 6th claimants/minors' share are concerned, the same shall be deposited in interest bearing Fixed Deposit in any one of the Nationalised Banks, till they attain majority. The 1st respondent is permitted to withdraw interest accruing on such deposit once in three months. 15. Accordingly, this appeal is dismissed. Consequently, connected miscellaneous petition is closed. No costs.