Oriental Insurance Company Ltd. vs Sunita Devi and Others

G.P. Mittal, J.—The Appeal is for reduction of compensation of Rs. 6,76,744/- awarded in favour of the Respondents No. 1 to 4 (the Claimants) for the death of Ramesh Yadav, who died in a motor vehicle accident which occurred on 02.04.2006. The only ground of challenge is that in a Petition (as in the instant case) u/s 163A of the Motor Vehicles Act, 1988 (the Act) the compensation is payable as per the structured formula given in the second Schedule and there is a cap of income of Rs. 40,000/- per month in such cases.

Mr. S.N. Parashar, Advocate concedes that in a Petition u/s 163A of the Act the compensation has to be in accordance with the structured formula.

The proposition of law is settled as per The Oriental Insurance Co. Ltd. etc. Vs. Hansrajbhai V.Kodala and Others etc. etc., , Deepal Girishbhai Soni and Others Vs. United India Insurance Co. Ltd., Baroda, and The Oriental Insurance Company Limited Vs. Meena Variyal and Others, .

The deceased''s income as per the minimum wages was taken as Rs. 3271/- per month. The Claims Tribunal made an addition of 50% on account of inflation which was not permissible. Similarly, the Claims Tribunal awarded compensation of Rs. 50,000/- towards loss of love and affection.

As per the second Schedule of the Act only a compensation of Rs. 9,500/- is payable towards loss to estate, loss of consortium and funeral expenses.

It was established that the deceased was aged 26 years at the time of the accident. Thus, instead of a multiplier of ''17'' as applied by the Claims Tribunal, the appropriate multiplier would be ''18''. The loss of dependency thus comes to Rs. 4,71,024/- (3271/- x 2/3 x 12 x 18).

On adding a sum of Rs. 9,500/-, that is, ( Rs. 2,500/- towards loss to estate, Rs. 5,000/- towards loss of consortium and Rs. 2,000/- towards funeral expenses), the overall compensation comes to Rs. 4,80,524/-, which shall carry interest @ 7.5% per annum from the date of filing of the petition till its payment.

The compensation of Rs. 4,80,524/- along with interest shall be disbursed in favour of the Claimants in terms of the order passed by the Claims Tribunal.

The excess amount of Rs. 1,96,220/- along with proportionate interest and the interest accrued, if any, during the pendency of the Appeal shall be refunded to the Appellant Insurance Company.

The statutory deposit of Rs. 25,000/- shall be refunded to the Appellant Insurance Company.

The Appeal is allowed in above terms. Pending Applications also stand disposed of.