National Insurance Co. Ltd. vs Sudesh and Others

J.R. Midha

The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs. 17,31,000/- has been awarded to claimants/respondents No. 1 to 6. The appellant seeks reduction of the award amount. The accident dated 12th November, 2002 resulted in the death of Krishan Lal Arora. The deceased was aged 49 years at the time of the accident and was survived by his widow, two sons, one daughter and parents who filed the claim petition before the Claims Tribunal. The deceased was working as a Meter Reading Inspector with the BSES Rajdhani Power Limited drawing a salary of Rs. 11,074/- per month. The Claims Tribunal added 50% towards his future prospects, deducted 1/3rd towards his personal expenses and applied the multiplier of 13 to compute the loss of dependency at Rs. 17,16,000/-. The Claims Tribunal has awarded Rs. 15,000/- towards funeral expenses. The total compensation awarded is Rs. 17,31,000/-.

The learned counsel for the appellant has urged at the time of hearing of this appeal that the future prospects should not have been taken into consideration and in any view of the matter, the future prospects could not have been more than 30% in terms of the judgment of the Supreme Court in the case of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another,

There is merit in the submission of learned counsel for the appellant. In the case of Sarla Verma (Supra), the Supreme Court has held that the future prospects in respect of person aged between 40-50 years should be taken as 30%. The future prospects in respect of the deceased are, therefore, reduced from 50% to 30%.

The learned counsel further submits that the Claims Tribunal has not deducted personal allowances and Income Tax while computing the income of the deceased. No Income Tax is payable for the relevant year if the highest permissible deductions and investments are taken into account. However, the washing allowance of Rs. 35/- being a personal expenditure is deducted from the salary of the deceased. The income of the deceased after the aforesaid deduction is taken as Rs. 11,039/-.

The deceased has left behind six legal representatives and according to the judgment of the Supreme Court in the case of Sarla Verma (Supra), the personal expenses of 1/4th should have been deducted whereas the Claims Tribunal has deducted 1/3rd. In that view of the matter, the personal expenses are reduced from 1/3rd to 1/4th.

The Claims Tribunal has not awarded any compensation for loss of consortium, loss of love and affection and loss of estate. Rs. 10,000/- is awarded towards loss of consortium and Rs. 10,000/- towards loss of estate. Rs. 16,968/- is awarded towards loss of love and affection.

Taking the income of the deceased to be Rs. 11,039/-, adding 30% towards future prospects, deducting 1/4th towards his personal expenses and applying the multiplier of 13, the loss of dependency is computed to be Rs. 16,79,032/-. The claimants are thus entitled to a total compensation of Rs. 17,31,000/- as per the break-up given herein below -

Loss of dependency

:

Rs. 16,79,032/-

Compensation towards funeral expenses

:

Rs. 15,000/-

Compensation towards loss of consortium

:

Rs. 10,000/-

Compensation towards loss of love and affection

:

Rs. 16,968/-

Compensation towards loss of estate

:

Rs. 10,000/-

Total

:

Rs. 17,31,000/-

For the reasons as aforesaid, there is no ground for reduction of the award amount. The amount awarded by the Claims Tribunal is upheld. The appeal is dismissed.

The appellant has deposited the entire award amount with the Claims Tribunal out of which 75% amount has been released to the claimants and the remaining amount is lying with the Claims Tribunal in terms of the order dated 28th September, 2005. Let the remaining award amount be released to the claimants in terms of the award.

The statutory amount deposited by the appellant be refunded to the appellant.

The LCR be sent back forthwith. Copy of this judgment be sent to the claimants/respondents No. 1 to 6 as well as their counsel.