Oriental Insurance Co Ltd vs Rahul Gupta @ Manoj Kumar & Ors

R.K.Gauba, J

The claimant (appellant in MAC.appeal No.542/2013) had suffered injuries in a motor vehicular accident that occurred on 29.10.2005 involving

negligent driving of a half body truck bearing registration no. HR-38/D-6016, admittedly insured against third party risk for the period in question with

the Oriental Insurance Company Limited (the insurer). On his accident claim case (MACT No. 309/10/06) instituted on 03.01.2006, the Tribunal held

inquiry and, by judgment dated 02.05.2012, awarded compensation in the total sum of Rs.2,75,766/- calculating it thus:-

A) Pecuniary damages (Special damages)

a) Medical bills ……………………….……….Rs.10,000/-

b) Future Medical Expenses……………………Rs.5,000/-

c) Special diet………………………………… Rs.10,000/-

d) Conveyance charges…………………………Rs.5,000/-

e) Loss of Income…………………..………. Rs.18,995/-

f) Loss of future income………………………..Rs.1,36,771/-

B) Non-peciniary damages (General damages):

g) Loss of amenities and expectation of life……Rs.20,000/-

h) Pain, sufferings & frustration etc.……………Rs.70,000/-

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Total: Rs.2,75,766/-

The liability to pay the said amount was fastened on the insurer, counsel fee in the sum of Rs.30,000/- having been added thereto.

The only ground pressed by the insurance company in its appeal concerns the inclusion of counsel fee, submitting that it was uncalled for. Per

contra, the claimant argues that in calculating the loss of future income due to disability assessed at 20%, the element of future prospects was wrongly

kept out. Such contention needs to be accepted.

Following the ruling of a Constitution Bench of the Supreme Court in SLP (C) 25590/2014, National Insurance Company Ltd. Vs. Pranay Sethi and

Ors., the element of future prospects of increase to the extent of 40% deserves to be added. Thus, the loss of future income due to disability is re-

computed as Rs.(3166 X 140/100 X 20/100 X 12 X 18) Rs. 1,91,479.68 rounded off to Rs.1,91,480/-. This would mean the award needs to be

increased by (1,91,480/- - 1,36,771/-) Rs.54,709/-. The award is increased to (2,75,766/- + 54,709/-) Rs.3,30,475/- rounded off to Rs.3,31,000/-

(Rupees Three Lakhs and Thirty One Thousand only). Needless to add, the increased award will also carry interest as levied by the Tribunal.

There being no justification for such inclusion, the direction for payment of counsel fee is set aside. The award is modified accordingly.

By order dated 27.07.2012 (in MAC. Appeal No. 794/2012), the insurance company had been directed to deposit the entire awarded amount with

UCO Bank, Delhi High Court Branch and 60% of such deposit was allowed to be released to the claimant. Since the award has been increased, the

registry shall release the balance lying in deposit to the claimant. The insurer shall satisfy the balance award by requisite deposit with the Tribunal

within 30 days.

The statutory amount shall be refunded upon proof of award having been satisfied is furnished.

The appeals stand disposed of accordingly.