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Judgment
G.P. Mittal, J.—The Appeal is for reduction of compensation of Rs. 7,30,200/- awarded for the death of Anubhav Tyagi, a bachelor aged 25 years in an accident which occurred on 17.09.2009. None appears on behalf of Respondents No. 1 and 2 despite service of notice of Appeal. The learned counsel for the Appellant submits that there is no breach of terms of policy, therefore, service of Respondents No. 3 and 4 is dispensed with.
The only ground of challenge is that in a petition u/s 163A of the Motor Vehicles Act, 1988 (the Act), compensation has to be granted in accordance with the structured formula as given in Schedule-II to the Motor Vehicles Act.
The issue is no longer res integra. This Court in New India Assurance Co. Ltd v. Pitamber & Ors. (MAC APP. 304/2009 decided on 23.01.2012) after analyzing the various judgments of this Court and the judgments of Supreme Court in The Oriental Insurance Co. Ltd. etc. Vs. Hansrajbhai V.Kodala and Others etc. etc., and Deepal Girishbhai Soni and Others Vs. United India Insurance Co. Ltd., Baroda, held that in a petition u/s 163A of the Act the compensation towards loss of dependency and non-pecuniary heads has to be granted in accordance with the structured formula as given in Schedule-II of the Motor Vehicles Act.
In view of this, loss of dependency comes to Rs. 4,53,400/- (40,000 x 2/3 x 17). The Appellants are entitled to compensation of Rs. 2,000/- towards funeral expenses and Rs. 2,500/- towards loss to estate. The overall compensation thus comes to Rs. 4,57,900/-.
The compensation is thus reduced from Rs. 7,30,200/- to Rs. 4,57,900/-. This amount shall carry interest @ 7.5% per annum as awarded by the Claims Tribunal. The Appellant/Insurance Company has not yet deposited the amount of compensation in terms of the order dated 13.04.2012. Let the amount of Rs. 4,57,900/- along with interest be deposited with the Claims Tribunal within six weeks.
The deceased was a bachelor, 75% of the compensation awarded shall go to the Respondent No.1 and 25% to the Respondent No.2. 60% from the amount awarded shall be held in Fixed Deposit for a period of three years. Rest of the amount shall be released forthwith.
On filing of proof of deposit of the awarded amount with the Claims Tribunal within eight weeks, the statutory deposit of Rs. 25,000/- shall be refunded to the Appellant/Insurance Company.
The Appeal is allowed in above terms. No costs.