New India Assurance Company Ltd vs Indra And Ors

This appeal has been preferred by the appellant-Insurance Company against the judgment and award dated 07.09.2015 passed by the Motor Accident Claims Tribunal No.1, Jaipur Metropolitan, Jaipur (for short 'the Tribunal'), whereby, the tribunal awarded a sum of Rs.12,07,800/- as compensation along with interest @ 6% per annum.

Learned counsel for the appellant has submitted that the tribunal committed an error in awarding compensation on the higher side. The tribunal erred in assessing the income of the deceased as Rs.6,000/- per month by considering him as a skilled labourer. While considering his income, it was observed that at the relevant time, rate of minimum wages fixed by the State for a skilled labourer was Rs.6,000/- per month. While at the relevant time, rate of minimum wages fixed by the State for skilled labourer was Rs.4,836/- per month only. The tribunal also erred in awarding 30% towards future prospects of the deceased. The age of the deceased was determined by the tribunal as 45 years at the time of accident, therefore, in view of the judgment of the Hon'ble Apex Court in National Insurance Company Ltd. & Pranay Sethi & Ors., reported in AIR 2017 SC 5157, 25% should have been allowed towards future prospects. It was also contended that it was neither pleaded nor any evidence was produced on record that the son of the deceased Jai Prakash was dependent on the deceased. Therefore, Jai Prakash cannot be said to be dependent on the deceased and in view of this fact, the tribunal erred in deducting 1/4 of the income towards personal expenses of the deceased. In support of this contention, learned counsel for the appellants has placed reliance on the judgment of the Orissa High Court in New India Assurance Company Ltd. Vs. Antaryami Purohit & Ors., reported in 1 (2011) ACC 846.

On the other hand, learned counsel for the respondents has opposed the appeal and supported the impugned judgment and award.

I have considered the rival submissions made by the learned counsel for the parties and have perused the material available on record and also the ruling cited by the learned counsel for the appellant.

The claim-petition was filed by the appellants asking for the compensation on account of death of Ram Kumar in a motor vehicle accident which occurred on 02.07.2013. The tribunal assessed the income of the deceased as Rs.6,000/- per month considering the deceased as skilled labourer and observing that at the relevant time, rate of minimum wages fixed by the State Government for a skilled labourer was Rs.6,000/- per month. However, at the relevant time, prevalent rate of minimum wages fixed by the State for a skilled labourer was Rs.4,836/- per month only. Therefore, the income of the deceased is liable to be assessed as Rs.4,836/- per month i.e. Rs.58,032/- per annum. As the deceased was aged about 45 years at the time of accident, therefore, in view of the judgment of Hon'ble Apex Court in Pranay Sethi & Ors. (Supra), an addition of 25% is to be awarded towards future prospects of the deceased, which comes to Rs.14,508/-. Thus, the income of the deceased comes to Rs.72,540/- (58,032+14,508). Further, it was clearly mentioned in the claim petition that all the claimants are dependent on the deceased and there is no evidence on record which proves that Jai Prakash aged about 24 years was doing any work and was not dependent on the deceased at the relevant time. The ruling cited by the learned counsel for the appellant in this regard is not applicable to the facts and circumstances of the present case. Thus, the tribunal was right in deducting one fourth of the said income towards personal expenses of the deceased. Admittedly, deceased was aged about 45 years at the time of accident. Thus, to work out the dependency of the claimants, the multiplier of 14 would be applied. In this way, the amount of compensation comes to Rs.7,61,670/- (72,540x3/4x14). The claimants would be further entitled to receive a sum of Rs.70,000/- towards conventional heads. Thus, the total amount of compensation receivable by the claimants comes to Rs.7,61,670+70,000=8,31,670/-.

Accordingly, this appeal is partly allowed. Impugned award dated 07.09.2015 is modified to the extent that the compensation amount receivable by the claimants is Rs.8,31,670/- instead of Rs.12,07,800/- as awarded by the Tribunal. Remaining terms and conditions of the award shall be the same.