Oriental Insurance Co. Ltd. vs Amina Begum and Others

Mohammad Yaqoob Mir, J.—By the medium of this appeal the award passed by the Motor Accident Claims Tribunal (Additional District

Judge), Doda dated 16th March, 2007 holding claimants entitled to an amount of Rs. 9,36,500 as compensation with interest @ 7.5 per cent per

annum from the date of filing of claim petition till its realization is assailed. On 10th October, 2004, Mohd. Sharief Natnoo, a Govt. Servant at the

age of 35 years lost life in a motor vehicular accident at Neel Trahal KM 13, Doda-Bharat Road, when he was travelling in the vehicle (Matador)

bearing No. 544 JK06 which met with an accident due to rash and negligent driving of its driver.

The offending vehicle is owned by respondent No. 7, same was insured with Oriental Insurance Company (appellant). On the basis of

respective pleadings of the parties, Tribunal has framed the following four issues:

(1) Whether the deceased died on 10th October, 2004 at 4 p.m. at Doda-Bharat road in a Road Traffic Accident, due to rash and negligent

driving of the driver of the vehicle No. JK06-0544.

--OPP

(2) If issue No. 1 is proved in affirmative, then whether the petitioners (therein) are entitled to compensation, if yes, then, how much and from

whom?

--OPP

(3) Whether the vehicle was being driven in violation of insurance policy?

--OPR-1

(4) Relief.

Finding returned on issue No. 1 by the learned Tribunal is not disputed.

Learned Tribunal after appreciating the evidence as has been produced and on proper application of law and then on the basis of the salary

certificate of the deceased as was produced has taken the monthly income of the deceased as Rs. 11,160 per month.

It is also noticed that the deceased is survived by widow, two sons and three minor daughters, eldest at the time of accident was 21 years old.

Learned Tribunal after applying the law as has been laid down in the judgment I (1996) ACC 592 (SC) : 1996 (SLT Soft) 841 : 1996 (2)

T.A.C. 286 (S.C.), U.P. Transport Corporation v. Tarlok Chand, has opined that the dependence value of the income of the deceased has to be

taken as Rs. 7,000 p.m., 11 has been applied as multiplier, therefore, the amount of compensation has been worked out as under:

Grant of Rs. 2,500 as funeral expenses and Rs. 5,000 for love and affection is impermissible. The funeral expenses to the extent of Rs. 2,000/-

are permissible, same is allowed.

Therefore, the total amount of just compensation payable to the claimant shall be as under:

Regarding issue No. 3, the respondent No. 1 therein (appellant) was to prove the same. But he has failed to produce any evidence so as to

show that the vehicle was driven in violation of insurance policy.

Learned Counsel for the appellant highlighted that in the accident, eight passengers died and more than twenty passengers were injured. The

owner as per permit was authorized to carry 15 passengers and a driver. Carrying passengers more than authorized amounts to violation to the

conditions of the insurance policy which disentitles the insured to claim indemnification by the insurer.

It was for the Insurance Company who had raised this defence to prove that the vehicle was carrying 22 passengers and the permit was only

for 15 passengers. When the Insurance Company (insurer) has failed to prove the same before the learned Tribunal, how can such an argument

without any support be entertained in the appeal?

The object of welfare legislation has to be promoted. On the basis of surmises, the victim cannot be deprived of getting the just compensation.

Learned Tribunal has appreciated the position of the dependence. The widow, five children with eldest child being 21 years old, all dependent on

the salary of the deceased. The tragedy has befallen on them, their only bread-earner died in the accident. Court cannot afford to be swayed by

sentiments in working out the just compensation. There can be no compensation for the loss of life but a small protection by way of consolation to

the family of the deceased so as to save them from any further awkward situation on income side.

With modification as indicated in para 9 in the quantum of compensation, the award impugned dated 16th March, 2007 is maintained. Appeal

to the extent succeeds. The amount of compensation along with interest/as may have accrued thereon minus the amount which has been paid, be

released in favour of the claimants strictly in terms of the award. Surplus amount, if any, shall be refunded to the Insurance Company along with

interest which may be accrued to that extent thereon. Appeal accordingly succeeds as such is disposed of along with connected CMA. Copy of

the judgment be sent to the Tribunal along with its record.