The New India Assurance Co. Ltd. vs Renuka

B. Sreenivas Gowda, J.—By consent of the learned counsel appearing for the parties, appeal is heard and disposed of finally, at the stage of admission itself.

It is a case of death of one Kumar in a road traffic accident. His wife, two minor children and father filed a claim petition in MVC No. 578/2012 before MACT, Basavakalyan seeking compensation under Section 166 of the Motor Vehicles Act from the owner and the insurer of the offending vehicle. The Tribunal, by impugned judgment and award, has awarded a sum of Rs. 17,73,000/- with interest at 6% per annum from the date of claim petition till the date of realization. Aggrieved by the sum awarded by the Tribunal, the Insurance Company has preferred this appeal seeking reduction of compensation.

As there is no dispute regarding death of deceased in the road traffic accident that occurred on 29.02.2012 due to rash and negligent driving of the offending Lorry bearing Reg. No. AP-09/T-3143 by its driver and liability of the insurer of the said vehicle, the only point remains for consideration in this appeal is:

"Whether the quantum of compensation awarded by the Tribunal is just and reasonable or does it call for enhancement?"

After hearing the learned counsel appearing for the parties and perusing the judgment and award of the Tribunal, we are of the view that the quantum of compensation awarded by the Tribunal is not just and reasonable it is on the higher side and therefore, it requires to be reduced.

The claimants in support of their contention that the deceased by working as a Mason was earning Rs. 12,000/- per month, except examining the first claimant wife of the deceased as PW-1 have not adduced any cogent evidence substantiating the income of the deceased. In the absence of proof of income, considering the age of the deceased as 35 years at the time of accident, year of the accident as 2012 and avocation as Mason, his income could be assessed at Rs. 250/- per day, which comes to Rs. 7,500/- per month. As all the claimants are dependant legal heirs of the deceased, deduction of 1/4th of the income of the deceased by the Tribunal towards living expenses of deceased is just and proper. The Tribunal is also justified in applying the multiplier of ''16'' based on the age of the deceased who was 35 years old at the relevant point of time. If so, loss of dependency would work out to Rs. 10,80,000 (Rs. 7,500 x 3/4 x 12 x 16) and it is awarded as against Rs. 17,28,000/- awarded by the Tribunal.

As we found compensation awarded under various conventional heads is on the lower side, the same is re-determined.

The first claimant-wife has lost her husband at her young age of 25 years and therefore we award a sum of Rs. 1,00,000/- towards loss of consortium as against Rs. 10,000/- awarded by the Tribunal. Claimants 2 and 3 have lost their father at the age of 6 years and 4 years respectively and claimant No. 4 father has lost his son at his old age. Therefore, we award Rs. 75,000/- towards loss of love and affection at the rate of Rs. 25,000/- to each of claimant Nos. 2, 3 and 4 and we award a sum of Rs. 25,000/- towards transportation of body and funeral expenses.

Thus, the claimants are entitled to following compensation:

Hence, the claimants are entitled to a total compensation of Rs. 12,80,000/- as against Rs. 17,73,000/- awarded by the Tribunal, and the compensation awarded by the Tribunal is reduced by Rs. 4,93,000/-.

Accordingly, appeal is allowed in part and the Judgment; and award passed by the Tribunal is modified to the extent stated herein above. Claimants are entitled to a total compensation of Rs. 12,80,000/- as against Rs. 17,73,000/- awarded by the Tribunal with the same rate of interest as awarded by the Tribunal.

The insurance company is directed to deposit the reduced compensation amount with interest within 3 months from the date of receipt of a copy of this judgment after deducting amount, if any, already deposited. The same shall be disbursed in favour of the claimants in terms of the award of the Tribunal.

Amount in deposit is ordered to be transmitted to the Tribunal in terms of this order.

No order as to costs.