Insurance: Where Deceased was a young permanent employee at time of accident, addition should be 50% towards future prospects, HC rules (Read Judgement)

The bench comprising of Justice V.G. Bisht passed judgment in the case titled National Insurance Company v. Suresh Narayan Khopar & ors.

The factum of accident resulting in death of the deceased, age and occupation are not in dispute. All that I am required to look into and decide is the income of deceased, appropriate application of multiplier, future prospects and consortium.

Facts:

The deceased was plying her scooter and was proceeding towards Mumbai from Thane. One motor truck came from behind in a very fast speed rashly and negligently and gave forcible dash from behind to the scooter and due to said impact, the deceased was knocked down on the road and sustained serious fatal injuries. Later, she succumbed to her injuries.

The claimants, who are parents, contended that at the time of death their daughter was in service and drawing salary of Rs. 30,000/- per month. The appellant-Insurance company contested the case before the Tribunal. On appreciation of material before it, the Tribunal allowed the claim petition awarding compensation of Rs. 23,60,000/- with interest at the rate of 7% per annum from the date of application till realization.

Justice Bisht pointed out that, “nature of salary was variable depending on the incentives earned by the deceased on a monthly basis. I agree with the learned counsel for the respondents that the last drawn salary for the month of August 2007 should have been reckoned for all purposes. More so, when the accident took place. Thus, the last drawn salary for the month of August 2007 was Rs.20,575/-. Therefore, the total annual gross income would be Rs.20,575 x 12 = Rs.2,46,900/-. Next step is the deduction on account of living and personal expenses of the deceased.”

The Court relied upon Smt.Sarla Verma & Ors. vs. Delhi Transport Corporation and Anr. AIR 2009 SC 3104 case where the Hon’ble Apex Court at paragraph 15 held that “Where the deceased was a bachelor and the claimants are parents, the deduction follows a different principle. In regard to bachelors, normally 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself”.

The present is a case where the deceased was a permanent employee and was 24 years old at the time of accident. In view of that, the addition should be 50% towards future prospects.

"The factum of accident resulting in death of the deceased, age and occupation are not in dispute. All that I am required to look into and decide is the income of deceased, appropriate application of multiplier, future prospects and consortium," the Judge stated.

The Court also referred to case Magma General Insurance Company where the Hon’ble Apex Court held that Filial consortium is the right of the parents to compensation in the case of accidental death of a child.

Appellant – Insurance Company was directed to pay Rs. 35,43,150/- along with interest at the rate of 8% per annum from the date of filing of the Claim Petition till payment, less that already deposited, within a period of eight weeks from the date of receipt of this judgment.

Read the Judgment: