United India Insurance Co. Ltd. - Petitioner @HASH Meera Devi and Others

Mr. Ramalingam Sudhakar, J. - The Insurance Company as well as Claimants have filed Appeal and Cross Appeal against the award dated

06.01.2006 passed by the Motor Accidents Claims Tribunal, Jammu.

It is a case of fatal accident. Common facts on both the Appeals are as follows:

Accident happened on 30.03.2003. Devindra Thakur, Havaldar Driver in the Army was driving One Ton vehicle. This vehicle was proceeding

from Jammu to Nowshera. The offending Vehicle Bus No. JKS-1453 driven in a rash and negligent manner by its driver hit the Army Vehicle, as a

consequence thereof, the Army Vehicle turned turtle and in the accident Havaldar Devendra Thakur died on spot. Private Bus was insured with the

Appellant-Insurance Company.

The finding of negligence on the part of the driver of the private Bus insured with the Appellant-Insurance Company and the liability of the owner

and the Insurance Company to compensate the claimant is not in dispute. The only issue raised in the appeal on behalf of the Insurance Company

is on the quantum of compensation and in Cross-Appeal, the claimants seek enhancement of the compensation.

Deceased Havaldar Devendra Thakur was claimed to be 43 years old at the time of accident and his wife 39 years old, daughter 19 and son 17

years old and the father 65 years, presently who is no more were the claimants and they have claimed Rs. 40,00,000/- (Rupees Forty Lac only) as

compensation.

In support of the claim for compensation, following witnesses are examined on behalf of the claimants:-

(i) Meera Devi-claimant;

(ii) Havaldar Ram Paul; and

(iii) Havaldar Kambli.

Exhibit EXPW-KD relating to salary certificate and EXPW K1 relating to the date of Birth of the deceased Havaldar Devendra Thakur were filed.

Neither any witness has been examined nor document has been filed on behalf of Insurance Company.

The Tribunal fixed the income of the deceased at Rs. 10,200/- and by adopting multiplier of 12, granted the following amount as compensation

along with interest @ 6% per annum from the date filing of the claim petition till the payment is made. The award was passed on 06.01.2006.

For loss of dependency Rs. 15,94,944/-

For loss of consortium Rs. 15,000/-

For loss of Estate. Rs. 15,000/-

For funeral expenses Rs. 03,000/-

Total Rs. 16,27,944/-

The Appellant-Insurance Company primarily pleads that the manner in which calculation was made for arriving at the compensation under the

loss of pecuniary benefits is faulty, whereas, it should be in accordance with the decision rendered by the Hon'ble Apex Court in case titled

Reshma Kumari and others v. Madan Mohan and another, reported as 2013 (2) Law Herald (SC)1583. There is no dispute on age.

The error pointed out by the Insurance Company is that while calculating the future prospects considering the age of the deceased as 43 years it

should be 30% whereas the Tribunal erroneously has taken as 50%. He fairly submits that the multiplier of 12 is wrongly adopted by the Tribunal

whereas it should be 14 in terms of the decision rendered by the Hon'ble Apex Court in case titled Sarla Verma and ors. v. Delhi Transport

Corporation & anr., reported as (2009) 6 SCC 121. Fairness on the part of Insurance Company is appreciated.

Insofar as the Cross Appeal is concerned, on behalf of learned counsel for the claimants pointed out that it is true that 30% future prospects

should be awarded and not 50% and if 14 as multiplier is adopted, the claimant will be entitled to higher compensation besides meager amount has

been granted for loss of consortium and no amount has been given to the children for loss of love and affection.

Taking note of the above plea, the award of the Tribunal which is not in consonance with the decisions rendered in Reshma Kumari's as well as

Sarla Verma's cases (supra), considering the age of the deceased as 43 years and his admitted income as Rs. 10,200/- if 30% future prospects is

added it will come to Rs. 13,231/- of which ¼th should be deducted for personal expenses of the decease, i.e. minus Rs. 3,307/- and the

monthly pecuniary benefits comes to Rs. 9,924/-. Adopting 14 multiplier, the annual Pecuniary loss comes to (Rs. 9,924 x12 x14)=Rs. 16,67,

232/-. Accordingly the claimant should be entitled to Rs. 16,67,232/-. For loss of consortium Rs. 15,000/- is granted. Keeping in mind the age of

the deceased and the age of widow a sum of Rs. 30,000/- is granted towards the loss of consortium. For loss of love and affection for two

children, as sum of Rs. 35,000/- each is granted, totalling Rs. 70,000/-. Loss of Estate Rs. 25,000/- and for funeral expenses Rs. 15,000/- is

granted. Considering the date of accident and the date of award, interest at the rate of 7.5% per annum is granted for the enhanced award.

The award of the Tribunal is modified and the claimants are entitled to the following enhanced compensation along with interest at the rate of

6% per annum from the date filing of the claim petition till the payment is made:-

S. No. Heading Award of the Tribunal Modified award

For loss of Dependency Rs. 15,94,944/- Rs. 16,67,232

For Consortium Rs. 15,000/- Rs. 30,000/-

For loss of Estate Rs. 15,000/- Rs. 25,000/-

For Funeral Expenses Rs. 03,000/- Rs. 15,000/-

For loss of love and affection Nil Rs. 70,000/-

Total Rs. 16,27,944/- Rs. 18,07,232/-

Learned counsel appearing for the Appellant-Insurance Company seeks four weeks' time to deposit the enhanced award and it is granted.

Appeal and Cross appeal stand disposed of in the above terms enhancing the award of the Tribunal.