NEW INDIA ASURANCE CO LTD. vs RADHABEN RAMJI & ORS.

Feeling aggrieved and dissatisfied with the impugned judgment and award passed by the learned Motor Accident Claims Tribunal (Main), Jamnagar in MACP No. 320 of 1988, by which, the learned Tribunal has partly allowed the said claim petition and awarded total sum of Rs. 1,98,750/to the original claimant towards compensation for the death of the deceased Ramji by holding Appellate Insurance Company liable to pay compensation, the original opponent no.4New India Assurance Company Limited has preferred present First Appeal.

Not satisfied with the amount of compensation awarded by the learned Tribunal, original claimants have preferred Cross Objections No. 169 of 1998.

In a vehicular accident which occurred on 6.8.1988 between truck bearing registration no. GTP 5181 and Tanker bearing registration no. GTP 7804 on Jamnagar Dwarka Highway, near Jagvad Sign Board, four persons including deceased Ramji died and three persons received serious injuries. That Tanker No. GTP 7804 was insured with the appellant herein - New India Assurance Company Limited and the Truck No. GTP 5181 was insured by United India Insurance Company Limited - original opponent no.7. That considering fact that there was head on collision between both the the vehicles and on appreciation of evidence, the learned Tribunal has held the driver of both the vehicles equally negligent i.e. to the extent of 50% each. That the learned Tribunal assessed the income of the deceased at Rs. 1250/per month i.e. Rs. 15000/per year. That the learned Tribunal thereafter deducted ¼ towards personal expenses of the deceased and assessed loss of the income at Rs. 11,256/per year and applying the multiplier of 15, awarded Rs. 1,68,750/towards future loss of income. The learned Tribunal awarded a further sum of Rs. 20,000/towards expectation of life and Rs.10,000/towards loss of consortium. Thus, the learned Tribunal awarded in all total sum of Rs. 1,98,750/. 3.1. Feeling aggrieved and dissatisfied with the impugned judgment and award passed by the learned Tribunal, the appellant herein - New India Assurance Company insurer of the Tanker bearing GTP No.7804 has preferred the present First Appeal and the original claimants have preferred the present Cross Objection.

Shri R.H. Mehta, learned advocate for the appellant - Insurance Company that the learned Tribunal has materially erred in holding the appellant Insurance Company - insurer of the Tanker bearing GTP No.7804 liable to pay compensation. 4.1. It is further submitted by Shri Mehta, learned advocate for the appellant that despite the fact that the learned Tribunal has held the driver of both the vehicles involved in the accident contributory negligent to the extent of 50%m still the learned Tribunal has fasten the liability upon the appellant Insurance Company to pay the compensation. No other submissions have been made. Making above submissions, it is requested to allow the present appeal preferred by the Insurance Company.

Learned advocate for the original claimants has chosen to remain absent. Present appeal and cross objection are of the year 1996, therefore, this Court has proceeded further with the hearing of the appeal exparte so far as original claimants are concerned.

Now, so far as cross objections preferred by the original claimants are concerned, from the memo of cross objections, it appears that it is the case on behalf of the original claimants that learned Tribunal has materially erred in assessing the income of the deceased at Rs. 1250/per month only while awarding future loss of income.

Having heard the learned advocate for the appellant Insurance Company and the documentary evidence on record, more particularly, conditions mentioned in IMT 16, in which, the risk of the driver of the vehicle is also covered on payment of additional premium, it cannot be said that the learned Tribunal has committed any error in holding the appellant Insurance Company liable to pay compensation. Under the circumstances, First Appeal preferred by the appellant Insurance Company deserves to be dismissed.

Now, so far as amount of compensation awarded by the learned Tribunal is concerned, from the impugned judgment and award passed by the learned Tribunal, it appears that the learned Tribunal awarded future loss of income assessing income of the deceased at Rs. 1250/per month i.e. Rs.15000/per annum. The learned Tribunal has deducted 1/4th towards personal expenses of the deceased. However, considering the fact that accident had taken place in the year 1988 and therefore, if the income would have assessed at Rs. 1500/per month and accordingly future loss of income would have been awarded it can be said to be just compensation. Thus, the income of the deceased can be said to be Rs. 18000/per annum. Looking to the number of depends / claimants only 1/4th was required to be deducted towards personal expenses of the deceased. Instead learned Tribunal has deducted ¼ th towards personal expenses of the deceased. Therefore, if 1/4th is deducted towards personal expenses of the deceased, in that case, the loss of income would come to Rs.13,500/per annum. The deceased was aged 38 years of age and therefore, the proper multiplier would come to 16. Therefore, original claimants shall be entitled to Rs. 2,16,000/towards future loss of income instead of Rs. 1,68.750/as awarded by the learned Tribunal. Thus, the original claimant shall also be entitled to Rs. 20,000/towards expectation of life and Rs. 10,000/as consortium as awarded by the learned Tribunal. The original claimants shall also be entitled to Rs.2500/towards funeral expenses. The Cross Objections are required to be partly allowed to the aforesaid extent. The learned Tribunal has awarded interest at the rate of 12% p.a. Therefore, if the interest is awarded at the rate of 12% p.a from the date of application till judgment and award passed by the learned Tribunal and for the subsequent period the interest is awarded at the rate of 9% p.a., it will meet the end of justice.

In view of the above and for the reasons stated above, present First Appeal is dismissed with modification of the interest awarded by the learned Tribunal. The Cross Objections preferred by the original claimants are partly allowed. The impugned judgment and award passed by the learned Tribunal passed in MACP No. 320 of 1988 is hereby modified to the extent and it is held that the original claimants shall be entitled to total sum of Rs. 2,48,500/towards compensation for the death of deceased Ramji. The claimants shall be entitled to aforesaid amount of compensation along with interest at the rate of 12% p.a. from the date of claim till impugned judgment and award passed by the learned Tribunal and at the rate of 9% p.a. from the date of impugned judgment and award till its realization. No costs.