T.K. Gopalan and M.M. Ambika vs P.M. Muthu and National Insurance Co. Ltd.

R. Basant,J.

The Appellants are the claimants. They are spouses aged 54 years and 43 years respectively. They claimed compensation for loss suffered by them on account of the death of their minor daughter who died in a road traffic accident which took place on 27/1/2003. Against a total claim of Rs. 2,00,000/-, the Tribunal awarded an amount of Rs. 1,66,500/- as per the details shown below:

Sl. No. Heads Amount Awarded

Part-I

1 Transport to Hospital and taking of dead body to house - Rs. 1,000/

2 Damage to clothing and articles - 500/

3 Funeral expenses - 5,000/

Part-II

1 Pain and sufferings - 15,000/

2 Shortened expectancy of life - Nil

3 Loss of love and affection - 25,000/

4 Loss of Dependency - 1,00,000/

5 Loss of estate - 20,000/

Total - 1,66,500/

The challenge is only on the quantum of the amount awarded. The learned Counsel for the Appellants submits that, at least, the amount that would have been payable u/s 163A of the Motor Vehicles Act must have been awarded by the Tribunal. This has been so held in National Insurance Co. Ltd. Vs. Muneer, . We are satisfied that, in the interests of justice, though this claim is u/s 166 of the M.V. Act, the minimum indisputable amount which is liable to be paid u/s 163A can be ordered to be paid. The challenge must succeed only to that extent.

The next question to ascertain is the quantum of compensation payable. The deceased was aged below 15 years and hence horizontal entry No. 1 of the table/chart in Clause-1 of the Second Schedule comes into play.

The deceased had not started earning and therefore in the absence of any evidence about earning, we choose to follow the presumption of prudence which is available under Clause-6 of the 2nd Schedule of the M.V. Act. Rs. .15,000/- per annum is thus assumed to be the annual income of the deceased for the purpose of computation of compensation under the 2nd Schedule.

We have repeatedly held that multiplier given in Column No. 2 of the 2nd Schedule is of no use at all in the ascertainment of compensation payable in the case of death. That is relevant only for the purpose of ascertaining the quantum of compensation payable in non-fatal disability cases coming under Clause-5 of the 2nd Schedule. We therefore have to ignore entry under Column No. 2 under the head of multiplier while attempting to ascertain the quantum of compensation payable in case of death.

There is no particular entry for an annual income of Rs. .15,000/-. We have already taken the view that the Schedule must be given a realistic interpretation and understanding. The horizontal entries refer to persons of different age groups. The vertical entries also, we assume, must refer to the range of income of the deceased persons. In that view of the matter, the first vertical column relating to annual income must be reckoned as pertaining to persons of the income upto Rs. .3,000/- Similarly, the subsequent columns must also be held to refer to persons earning income upto Rs. 4,200/-, Rs. 5,400/-, Rs. 6,600/- etc., upto Rs. 40,000/- in the last column. So reckoned, the deceased in this case must fall under the group of persons earning above Rs. 12,000/- upto Rs. 18,000/- given under vertical Column No. 10. This means that the amount "rupees in thousands" payable is 360 i.e., Rs. 3,60,000/-. From this, 1/3rd amount is to be deducted as expenses in the Note. This means that the compensation payable under Clause-1 of the 2nd Schedule would be Rs. 2,40,000/-( Rs. 3,60,000/- x 2/3). In addition, an amount of Rs. 2,000/- under the head of funeral expenses and Rs. 2,500/- under the head of loss of estate shall also be payable under Clause-3. Thus the total amount payable would be:

Compensation for fatal accidents under Clause-1 of the Second Schedule ( Rs. 3,60,000/- x 2/3) - Rs. 2,40,000/-

2 Funeral Expenses under Clause 3(i) Rs. 2,000/-

3 Loss of estate under Clause 3(iii) Rs. 2,500/-

Total - Rs. . 2,44,500/-

In the result:

(a) This appeal is allowed in part.

(b) In addition to the amounts already awarded by the Tribunal, the Appellant is found entitled to a further amount of Rs. 78,000/- (Rupees seventy eight thousand only) ( Rs. 2,44,500/-minus Rs. 1,66,500/-).

(c) The entire amount of compensation shall bear interest as directed by the Tribunal.