National Insurance Company Ltd. vs Sri Harish Ch. Roy

1. Heard the Ld. counsel Mr. A. R. Agarwala, Ms. D. D. Barman and Ms. S. Roy.

2. Both the appeals being filed against the judgment and award passed by Motor Vehicle Accident Tribunal, Dhubri, in MAC Case No. 139/2013

are taken together for hearing and disposal with the consent of the parties.

3. The undisputed facts, which may be relevant for disposal of the present appeals are that one Ajit Kr. Roy died in a motor vehicle accident on

15.3.2013, due to rash and negligent driving of the vehicle bearing registration No. As-17/0949. At the time of accident the age of the victim was 21

years and his monthly income was Rs. 3,600/-. The offending vehicle was owned by the respondent M/s Krishna Trading Co. and insured with the

National Insurance Company.

4. The parents of the deceased filed an application praying for compensation and the learned Motor Accident Claims Tribunal, by the impugned

award, granted the compensation of Rs. 4,94,600/- with interest @ of 9 % from the date of filing the petition.

5. Aggrieved by the award the claimants have preferred the appeal praying for enhancement of the compensation. The Insurance Company has

also filed an appeal for reduction of the compensation.

6. Learned counsel for the Insurance Company submits that deceased was a bachelor and the claim petition was filed by the parents and as such

the deduction on account of personal expenses of the deceased ought to have been made 50% of the income. However the Ld. Tribunal deducted

only 1/3rd of the income and thereby failed to award a just compensation.

7. Learned counsel for the claimants submits that while determining the loss of dependency, future prospect was not considered, though 40 % of the

income ought to have been added as future prospect. Further contention of the learned counsel for claimants is that the quantum of compensation on

account of conventional heads like funeral expenses was extremely low and no compensation was awarded towards loss of estate. Learned counsel,

therefore, urged for enhancement of compensation.

8. So far as deduction of the personal expenses of the deceased is concerned, in the instance case, deceased being a bachelor and the claim petition

having been filed by the parents, the deduction should have been 50 per cent and not 1/3rd in view of the decision of the Hon’ble Apex Court in

Sarla Verma Vs. DTC (2009) 6 SCC 121, and as such I find merit in the submission of the learned counsel for the Insurance Company.

9. Apparently, the Ld. Tribunal did not take into consideration, the future prospect, though, considering the age of the deceased, an amount equal to

40 % of the actual income of the deceased ought to have been added to the income as future prospect, in view of the decision of the Hon’ble

Apex Court in Pronay Sethi Vs. National Insurance Company AIR 2017 SC 5157. The age of the deceased being 21 years, multiplier should have

been 18. However, the Ld. Tribunal erroneously applied 17 as multiplier. Apparently no amount was awarded towards loss of estate. As per the

principle laid down in the Case of Pronay Sethi Vs. National Insurance Company (Supra) an amount of Rs. 15,000/- each is required to be awarded

on account of funeral expenses and loss of estate respectively. Thus adding 40% of the income to the actual income of the deceased and Rs. 15,000/-

each on account of loss of estate and funeral expenses, just and reasonable compensation to which the claimant is entitled is assessed as under:

a.  Monthly Income of deceased :     Rs. 3600.00

b. Future prospect 40%            :     Rs. 1440.00Â

   Total                                   :     Rs. 5040.00Â

c. Deduction by ½                   :     Rs. 2520.00

d. Â Â Total loss of dependency X 18.002520 x 12 x 18Â =Â :Â Â Â Â Â Rs. 5,44,320.00

e. Funeral Expenses               :     Rs. 15,000.00

f. Loss of estate                      :     Rs. 15,000.00Â

 Total                                     :     Rs. 5,74,320.00/-

10. Insurance Company shall satisfy the above award of Rs. 5,74,320/- with the interest @ 9 % from the date of filing of the claim petition by

depositing the same with the Tribunal within 6 (six) weeks. The amount paid if any, including no for liability, shall stand adjusted. The Tribunal shall

ensure that 50 % of the awarded amount including interest be fixed deposited in the name of mother of the deceased for two years and 25 per cent

for one year in a nationalized bank

11. Both the appeals stand disposed of. The statutory amount of Rs. 25,000/- deposited by the Insurance Company be returned.

12. Send down the LCR.