Iftkhar vs Anesthetic Gases (P.) Ltd.

G.P. Mittal, J.—The Appeal is for enhancement of compensation of Rs. 3,94,503/- awarded for the death of Smt. Sabra Begum, who died in a motor vehicle accident which occurred on 26.06.2005. During inquiry before the Motor Accident Claims Tribunal (the Claims Tribunal) it was claimed that apart from looking after household work, the deceased was doing tailoring and stitching work. The Claims Tribunal disbelieved that the deceased was in gainful employment and took minimum wages of an unskilled worker to award the loss of dependency for the gratuitous services rendered by the deceased as a housewife.

It is urged that the compensation awarded is very low and meager.

This case is covered by the judgment of this Court in Royal Sundaram Alliance Insurance Co. Ltd. v. Master Manmeet Singh & Ors., MAC.APP. 590/2011, decided on 30th January, 2012. 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, ILR (2004) 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 Vs. M. Manikya Reddy and Another

(vii) Morris v. Rigby (1966) 110 Sol Jo 834 and

(viii) Regan v. Williamson 1977 ACJ 331 (QBD England),

and laid down the principle for determination of loss of dependency on account of gratuitous services rendered by a housewife. Para 34 of the judgment in Master Manmeet Singh (supra) 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.

Thus, following Master Manmeet Singh the loss of dependency comes to Rs. 6,25,388/- (3237/- + 15% x 12 x 14).

I would enhance the compensation towards loss of love and affection to Rs. 25,000/-. The Appellant would be further entitled to a sum of Rs. 10,000/- each towards loss of consortium and funeral expenses.

The overall compensation thus comes to Rs. 6,70,388/-.

The enhanced compensation of Rs. 2,75,885/- shall carry interest @ 7.5% per annum from the date of filing of the Petition till its payment.

Respondent No. 2 Oriental Insurance Company Limited is directed to deposit the enhanced compensation along with interest with UCO Bank, Delhi High Court Branch, New Delhi within six weeks.

10% of the enhanced compensation shall be payable to each of the Appellants No. 1 to 5 whereas 25% shall be payable to each of the Appellants No. 6 and 7.

60% of the enhanced compensation shall be held in fixed deposit for a period of three years. Rest shall be released on deposit.

The Appeal is allowed in above terms. Pending Applications stand disposed of.