The Branch Manager, the National Insurance Company Limited vs Kumkum Devi

Gautam Kumar Choudhary, J

Both, the appeal and cross objection, have been preferred against the award of compensation of compensation of Rs.11,85,500/-with interest at the rate of 6% per annum from the date of filing of the application, under Section 166 of the Motor Vehicle Act in Motor Vehicle Claim Case No. 16 of 2014 for the death of Basant Kumar Mahto who died in a motor vehicle accident on 23.07.2013.

The sole ground of challenge of compensation amount in Misc. Appeal No. 380 of 2016 is that the income of the deceased of Rs.10,000/- per month has been accepted without any supporting document of income. It is argued that the deceased, as per the pleadings, was a vegetable vendor with a monthly income of Rs.15,000/-, but not a chit of paper has been filed in support of it.

I find force in the argument on behalf of the respondents-claimants that considering the nature of occupation of the deceased, there cannot be income certificate. Learned Tribunal has dealt with at length the oral evidence for assessing the income of the deceased to be Rs.10,000/- per month. No contrary evidence was led by learned counsel for the Insurance Company. The appeal preferred by the Insurance Company is not sustainable and is, accordingly, dismissed. Statutory amount deposited by the Insurance Company to be remitted to the Tribunal to be adjusted against the compensation amount to be paid to the claimants.

The claimants have preferred the Cross Objection No. 33 of 2021 for enhancement of compensation under the following heads:

i. The deceased was survived by four dependents. Therefore, the loss of income for calculating dependency should have been computed by deducting 1/4th from the income of the deceased, whereas learned Tribunal has deducted 1/3rd.

ii. Future prospect 25% of the deceased as he was 45 years of age has also not been reckoned by learned Tribunal.

iii. A consortium of Rs.70,000/-.

iv. Income of Rs.15,000/- has not been considered by learned Tribunal from the date of filing of the claim of the claimants.

Having considered the submissions advanced on behalf of both sides and considering the nature of occupation, I do not find any infirmity so far as the income assessment of Rs.10,000/- per month has been taken by the learned Tribunal. However, in view of the ratio laid down by the Hon’ble Supreme Court in National Insurance Company Limited Vs. Pranay Sethi (2017) 16 SCC 680, the appellants/claimants are entitled to enhancement of compensation as under:

Monthly Income Rs.10,000 + 25%

Rs.12,500/-

Annual  dependency  after  deducting

1/4th   on  the  living  and  personal

expenses of the deceased

Rs.9375/-

Annual Income

Rs.9375/-x 12= Rs.1,12,500

Multiplier x 14

Rs.15,75,000/-

Conventional Head

Rs.70,000

Total

Rs.16,45,000/-

The claimants shall, therefore, be entitled to compensation of Rs.16,45,000/- with interest at the rate of 6% per annum on the compensation amount from the date of filing of claim application from the Insurance Company till the date of payment. Payment shall be made within two weeks of the order before the learned Tribunal and the same shall be disbursed to the respective claimants on proper identification as per the terms of disbursement decided by the Tribunal.

Cross Objection No. 33 of 2021 is, accordingly, disposed of.