The New India Assurance Co. Ltd. vs Mara Chinna Rajanna and Others

G. Radhakrishna Rao, J.—Aggrieved by the award passed by the lower tribunal granting compensation of Rs. 60,000/- for the death of a boy aged about 16years in motor accident, the insurance company filed the appeal. The parents of the deceased also filed cross-objections for enhancement.

It is contended by the insurance company that the lower tribunal has not followed the procedure prescribed by the Supreme Court in assessing the quantum of compensation. The Lower tribunal held that due to the death of the boy, the parents had lost their future hope. He therefore fixed the compensation by applying the multiplier 15. The learned Judge has lost sight of the fact that the deceased was only 16 years by the time of accident and the question of his rendering assistance to his parents will arise only after he gets good employment and earns attractive salary. Basing upon the merit certificates in games and percentage of marks obtained by the deceased in his SSC examination, the learned Judge granted the amount presuming that he would get attractive job and the parents were deprived of the same by virtue of the said accident. But, in these days, obtaining of good marks is different from getting an attractive job. The presumption of the learned Judge that he would get good employment is without basis. Even assuming that the deceased gets good job after his education, he may not spend more than Rs. 1,000/- per year and assuming that he would serve for complete 30 years in employment, the total contribution to the parents can be arrived at Rs. 30,000. The death of the deceased would certainly have caused mental agony and sorrow in the mind of the parents. Therefore, an amount of Rs. 5,000/- can be allotted to the parents under this head. The parents claimants are altogether entitled for a sum of Rs. 35,000/- towards compensation. As the lower tribunal granted interest at 6% only, I enhance the same to 12% per annum.

In view of the above findings, I allow the CMA in part and the decree of the Lower Tribunal is modified granting compensation of Rs. 35,000/- to the claimants together with interest at 12% per annum.

The Cross-objections filed by the claimants are dismissed accordingly.