New India Assurance Co. Ltd. vs Munnavar Sultana and Others

G. P. Mittal, J.—The Appellant New India Assurance Co. Ltd. impugns the award dated 18.05.2011 passed by the Motor Accident Claims Tribunal (the Tribunal) whereby a compensation of Rs. 16,60,242/- was granted on account of death of Sarvar, who was aged 24 years at the time of accident. The contentions raised by the Appellant Insurance Co. are: -

(i) The Tribunal admitted that there was no evidence that the deceased was doing embroidery work still the minimum wages of the skilled worker were taken instead of minimum wages of an unskilled worker.

(ii) The compensation awarded towards loss of consortium is excessive and against the ratio of Smt. Sarla Verma and Others Vs. Delhi Transport Corporation and Another,

(iii) The number of claimants were 4 and, therefore, 1/4th was to be deducted towards personal expenses instead of 1/5th in view of Sarla Verma v. DTC (supra).

In my view the appeal is bound to succeed on the above grounds.

In the absence of any evidence as to the deceased''s vocation the Respondents (Claimants) were entitled to compensation @ Rs. 3,680/-, which were the minimum wages of an unskilled worker. On the basis of Kiran Devi & Ors. v. Surjeet Yadav & Ors., MAC. APP. No.511/2009 decided on 18.01.2010; Kanwar Devi v. Bansal Roadways, 2008 ACJ 2182; National Insurance Company Ltd. v. Renu Devii, III (2008) ACC 134 and UPSRTC v. Munni Devi, MAC. APP. No.310/2007, an addition of 50% was made by the Tribunal. The dependency thus works out as Rs. 3,680/- + 50% - 1/4th x 12 x 18 = Rs. 8,94,240/-. In addition, the Appellants were entitled to a sum of Rs. 7,500/- towards funeral expenses, Rs. 10,000/- towards loss of estate, Rs. 10,000/- towards loss of consortium and Rs. 25,000/- towards love and affection in addition to the medical expenses actually spent i.e. Rs. 4,28,000/-. The total compensation is assessed as Rs. 13,74,740 on which the Respondents (Claimants) shall be entitled to interest @ 7.5% per annum from the date of filing of the petition till the date of the deposit of the amount in the Court after deducting a sum of Rs. 50,000/- (awarded as interim compensation).

Out of the awarded amount a sum of Rs. 4,28,000/- along with proportionate interest shall be paid to Respondent No.2 (the deceased''s father), the amount which was spent by the deceased''s father, shall be immediately disbursed to him.

From the remaining amount of Rs. 9,46,740/- a sum of Rs. 4,46,740/- with proportionate interest shall be payable to Respondent No.3 (deceased''s wife). A sum of Rs. 1,00,000/- along with proportionate interest shall be disbursed to her while another Rs. 1,00,000/- shall be held in the form of FDR for a period of 2 years. The remaining amount shall be held in FDR for a period of 10 years. A sum of Rs. 2,50,000/- shall be payable to Respondent No.4 the minor child of the deceased, which shall be held in FDR till the time Respondent No.4 attains the age of 21 years. Respondent No.1 shall be entitled to an amount of Rs. 1,50,000/- out of which Rs. 50,000/- shall be released to Respondent No.1 along with proportionate interest and the remaining amount shall be held in the form of FDR for a period of 3 years. Respondent No.2 shall be entitled to a sum of Rs. 1,00,000/- out of which Rs. 25,000/- shall be released along with proportionate interest and the remaining amount held in the form of FDR for a period of 3 years. The Respondents shall be entitled to payment of monthly interest on the amount held in FDR by transfer to their savings accounts. The amount in the fixed deposit shall be held in UCO Bank, Delhi High Court Branch, New Delhi.

The appeal is allowed in above terms. The excess amount deposited by the Insurance Co. shall be refunded immediately. Statutory amount of Rs. 25,000/-, if deposited, shall also be refunded.

A copy of this order be communicated to UCO Bank, Delhi High Court Branch, New Delhi.