National Insurance Co. Ltd. vs Usha Devi Sharma and Others

G.P. Mittal, J.—The Appeal is for reduction of compensation of Rs. 25,78,680/- awarded for the death of Rajneesh Prakash Sharma, who died in an accident which occurred on 22.10.2002. The only ground of challenge in the Appeal is that the Appellants were not entitled to any addition on account of future prospects.

The deceased was aged 44 years and was in permanent employment with Canara bank. The Claims Tribunal accepted his salary as Rs. 14176/-, added 50% towards future prospects, 50% was deducted towards personal expenses and applied the multiplier of 15 to compute the loss of dependency. As per Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another, the addition towards future prospects would be 30% and deduction would be 1/4th instead of 1/3 as made by the Claims Tribunal. The loss of dependency would thus come to Rs. 24,87,888/- ( Rs. 14176x12+30%x1/4x15). On adding a sum of Rs. 25,000/- towards loss of Love and Affection and Rs. 10,000/- each towards Loss of Consortium, Loss to Estate and Funeral Expenses, the overall compensation comes to Rs. 25,42,888/- as against an award of Rs. 25,76,680/-.

In the circumstances, the compensation awarded cannot be said to be exorbitant and excessive. Thus the Appeal has to fail; the same is accordingly dismissed.

Statutory amount of Rs. 25,000/-be refunded to the Appellant.

The amount deposited shall be disbursed in favour of Respondents No. 1 to 4 in terms of the order passed by the Claims Tribunal. Pending applications also stand disposed of.