ICICI Lombard General Insurance Co. Ltd. vs Vibha Devi and Others

G.P. Mittal, J.—The Appellant seeks reduction of compensation of Rs. 10,73,000/- awarded for the death of Rakesh Kumar who died in a motor accident which occurred on 23.12.2009. During inquiry before the Motor Accident Claims Tribunal (the Claims Tribunal) it was claimed that the deceased was working as a labourer and was earning Rs. 4,500/- per month.

Vibha Devi (PW-1) the deceased''s widow admitted during cross-examination that she did not have any documentary evidence with regard to the occupation and earning of the deceased. The minimum wages of an unskilled worker on the date of the accident were Rs. 3953/- per month, on which addition of 50% was made on account of inflation, deduction of one-fourth was made towards the personal and living expenses and the multiplier was taken as ''17'' to compute the loss of dependency as Rs. 9,18,000/-.

It is urged by the learned counsel for the Appellant that since there was no evidence of future prospects no addition should have been made in the assumed income. It is contended that future inflation is built in the multiplier and no addition could have been made on that count. It is stated that award of Rs. 1,25,000/- towards loss of love and affection is excessive.

In Dhaneshwari & Another v. Tajeshwar Singh & Others MAC. APP 997/2011 decided on 19.3.2012, after noticing the Judgments of this Court i Smt. Anari Devi Vs. Shri Tilak Raj and Another, , National Insurance Co. Ltd. Vs. Pooja and Others, Om Kumari & Ors. v. Shish Pal & Ors. 140 (2007) DLT 62, Narinder Bishal & Anr. v. Rambir Singh & Ors. MAC APP. 1007-08/2006, decided on 20.02.2008, New India Assurance Co. Ld. v. Vijay Singh MAC APP. 280/2008 decided on 09.05.2008; Oriental Insurance Company Limited v. Smt. Rajni Devi & Ors. MAC APP.286/2011 decided on 06.01.2012; Smt. Gulabeeya Devi v. Mehboob Ali & Ors. MAC APP.463/2011 decided on 10.01.2012 and IFFCO TOKIO Gen. Ins. Co. Ltd. v. Rooniya Devi & Ors. MAC APP.189/2011 decided on 30.01.2012 and Division Bench Judgments of this Court in Delhi Transport Corporation and Another Vs. Lalita, ) and Rattan Lal Mehta v. Rajinder Kapoor & Anr. II (1996) ACC 1 (DB), this Court has held that in view of Rattan Lal Mehta (supra) increase in minimum wages cannot be given on account of future inflation.

The loss of dependency therefore has to be calculated on the basis of the deceased''s income as per the Minimum Wages Act i.e. Rs. 3953/- per month rounded of to Rs. 4,000/- per month.

Thus, the loss of dependency comes to Rs. 6,12,000/- (4000/- x 3/4 x 12 x 17).

The Claims Tribunal awarded a sum of Rs. 1,25,000/- towards Loss of Love and Affection. As Loss of love and affection can never be measured in terms of money. Thus, uniformity has to be adopted by the Courts while granting non-pecuniary damages. The Supreme Court in Sunil Sharma and Others Vs. Bachitar Singh and Others, and in Baby Radhika Gupta and Others Vs. Oriental Insurance Co. Ltd. and Others, granted only Rs. 25,000/- (in total to all the claimants) under the head of loss of love and affection. Thus, I would reduce the compensation under this head to Rs. 25,000/- only.

The overall compensation is recomputed as under:-

Sl. No.

Compensation under various heads

Awarded by this Court

1.

Loss of Dependency

Rs. 6,12,000/-

2.

Loss of Love & Affection

Rs. 25,000/-

3.

Loss to Estate

Rs. 10,000/-

4.

Loss of Consortium

Rs. 10,000/-

5.

Funeral Expenses

Rs. 10,000/-

Total

Rs. 6,67,000/-

The overall compensation is thus reduced from Rs. 10,73,000/- to Rs. 6,67,000/-.

The excess amount of Rs. 4,06,000/- along with the proportionate interest and the interest if any, accrued during the pendency of the Appeal shall be refunded to the Appellant Insurance Company.

Statutory amount deposited shall also be refunded to the Appellant Insurance Company.

The Appeal is allowed in above terms. Pending application also stands disposed of.