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Judgment
G.P. Mittal, J.—The Appellant IFFCO TOKIO General Insurance Company Limited impugns a judgment dated 27.08.2010 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby a compensation of Rs. 8,67,000/- was awarded for the death of Smt. Shyamo Devi who died in a motor vehicle accident which occurred on 15.01.2009. The Trial Court referred to Lata Wadhwa and Others Vs. State of Bihar and Others, where the value of gratuitous services rendered by the housewife was taken as Rs. 3,000/- per month, doubled it on the ground that the case pertains to the year 2009, and applied the multiplier of 11 to compute the loss of dependency as Rs. 7,92,000/-.
The Claims Tribunal further awarded a sum of Rs. 50,000/- towards loss of love and affection, Rs. 10,000/- each towards loss of consortium and loss to estate and Rs. 5,000/- towards funeral expenses, to compute the overall compensation of Rs. 8,67,000/-.
It is urged by the learned counsel for the Appellant that the compensation awarded is exorbitant and excessive.
This case is covered by the judgment of this Court in Royal Sundaram Alliance Insurance Co. Ltd. and Vs. Master Manmeet Singh and Others etc. etc., This Court noticed the following judgments of the Supreme Court:-
(i) General Manager, Kerala State Road Transport Corporation, Trivandrum Vs. Mrs. Susamma Thomas and others,
(ii) National Insurance Company Limited v. Deepika & Ors., 2010 (4) ACJ 2221,
(iii) Amar Singh Thukral v. Sandeed Chhatwal, (2004) ILR 2 Del 1,
(iv) Lata Wadhwa and Others Vs. State of Bihar and Others,
(v) Gobald Motor Service Ltd. and Another Vs. R.M.K. Veluswami and Others,
(vi) A. Rajam v. M. Manikya Reddy & Anr., AP/0303/1988,
(vii) Morris v. Rigby (1966) 110 Sol Jo 834 and
(viii) Regan v. Williamson 1977 ACJ 331 (QBD England),
and laid down the principles for determination of loss of dependency on account of gratuitous services rendered by a housewife. Para 34 of the judgment in Master Manmeet Singh is extracted hereunder:-
To sum up, the loss of dependency on account of gratuitous services rendered by a housewife shall be:
(i) Minimum salary of a Graduate where she is a Graduate.
(ii) Minimum salary of a Matriculate where she is a Matriculate.
(iii) Minimum salary of a non-Matriculate in other cases.
(iv) There will be an addition of 25% in the assumed income in (i), (ii) and (iii) where the age of the homemaker is upto 40 years; the increase will be restricted to 15% where her age is above 40 years but less than 50 years; there will not be any addition in the assumed salary where the age is more than 50 years.
(v) When the deceased home maker is above 55 years but less than 60 years; there will be deduction of 25%; and when the deceased home maker is above 60 years there will be deduction of 50% in the assumed income as the services rendered decrease substantially. Normally, the value of gratuitous services rendered will be NIL (unless there is evidence to the contrary) when the home maker is above 65 years.
(vi) If a housewife dies issueless, the contribution towards the gratuitous services is much less, as there are greater chances of the husband''s re-marriage. In such cases, the loss of dependency shall be 50% of the income as per the qualification stated in (i), (ii) and (iii) above and addition and deduction thereon as per (iv) and (v) above.
(vii) There shall not be any deduction towards the personal and living expenses.
(viii) As an attempt has been made to compensate the loss of dependency, only a notional sum which may be upto Rs. 25,000/- (on present scale of the money value) towards loss of love and affection and Rs. 10,000/- towards loss of consortium, if the husband is alive, may be awarded.
(ix) Since a homemaker is not working and thus not earning, no amount should be awarded towards loss of estate.
An Appeal being SLP (C) No. 19711/2012 filed against the above referred judgment as ICICI Lombard General Insurance Company Limited v. Shiv Kumar & Ors., was dismissed by the Supreme Court by an order dated 24.07.2012.
Applying Master Manmeet Singh the loss of dependency comes to Rs. 5,11,632/- (3876/- x 12 x 11).
The Claimants are further entitled to a sum of Rs. 25,000/- towards loss of love & affection, Rs. 10,000/- towards loss of consortium and Rs. 5,000/- towards funeral expenses. The overall compensation comes to Rs. 5,51,632/-.
The compensation is reduced from Rs. 8,67,000/- to Rs. 5,51,632/- (including the interim compensation of Rs. 50,000/-).
The excess amount of Rs. 3,15,368/- along with proportionate interest and the interest accrued, if any, during the pendency of the Appeal shall be refunded to the Appellant Insurance Company.
The compensation awarded shall be released/held in fixed deposit in terms of the order passed by the Claims Tribunal.
The statutory deposit of Rs. 25,000/- be refunded to the Appellant Insurance Company.
The Appeal is allowed in above terms. Pending Applications also stand disposed of.