Shimla Devi and Others vs The Oriental Insurance Co. and Others

G.P. Mittal, J.—The Appellants seek enhancement of compensation in respect of death of Dinesh Kumar, who died in a motor accident on 05.11.2006.

During the inquiry before the Tribunal it was claimed that the deceased was working as a driver and was earning Rs. 10,000/-. In the absence of any documentary evidence with regard to the employment and his earning, the Tribunal took the minimum wages of a skilled worker on the date of the accident i.e. Rs. 3,736/- per month to be the deceased''s income to compute the compensation.

The Appellant''s grievance is that no compensation has been granted on account of increase in the cost of living and the compensation awarded towards loss of love and affection was on the lower side.

In view of the judgments of this Court in (i) UPSRTC v. Munni Devi, IV (2009) ACC 879 ; (ii) National Insurance Company Ltd. Vs. Renu Devi and Others, ; and (iii) Narinder Bishal & Anr. v. Rambir Singh & Ors. MAC APP. 1007-08/2006 decided by this Court on 20th February, 2008, 50% of the minimum wages have to be added to offset the inflation due to indexation. The minimum wages are revised not only to meet the inflation but also to improve the standard of living of the lowest paid workers and hence there is need to add 50% of the minimum wages to arrive at the victim''s income.

The loss of dependency, thus, works out to be Rs. 9,07,848/- ( Rs. 3,736/- + 50% = Rs. 5,604 - 1/4th x 12 x 18). The compensation of Rs. 40,000/- granted by the Tribunal towards loss of love & affection is on higher side, the same needs to be reduced to Rs. 25,000/-. The compensation awarded is tabulated hereunder: -

Sl. No.

Head of Compensation

Compensation granted by the Tribunal

Compensation granted by the High Court

1.

Loss of dependency

Rs. 6,05,232/-

Rs. 9,07,848/-

2.

Loss of love and affection

Rs. 40,000/-

Rs. 25,000/-

3.

Loss of consortium

Rs. 10,000/-

Rs. 10,000/-

4.

Medical expenses

Rs. 82,163/-

Rs. 82,163/-

5.

Loss of future prospects

6.

Pain and suffering

7.

Funeral expenses

Rs. 10,000/-

Rs. 10,000/-

8.

Loss of estate

Rs. 10,000/-

Rs. 10,000/-

Total

Rs. 7,57,395/-

Rs. 10,45,011/-

The Respondents are jointly and severally liable to pay the enhanced compensation of Rs. 2,87,616/- along with interest @ 7.5% from the date of filing of the petition till the date of payment. Respondent No.1 is directed to deposit the amount within six weeks. 10% of the enhanced compensation along with proportionate interest shall be payable to each Appellants No.2 to 5 and rest of the amount shall be payable to Appellant No.1.

60% of the amount payable to Appellants No.1, 4 & 5 shall be held in the form of FDR for a period of 5 years. Rest of the amount shall be released forthwith. The amount payable to Respondents No.2 & 3 shall be held in the form of FDR in UCO Bank, Delhi High Court Branch, New Delhi till they attain the age of majority. The Appellants would be entitled to payment of quarterly interest.

The appeal is allowed in above terms.

A copy of this order be communicated to UCO Bank, Delhi High Court Branch, New Delhi.