The division judge bench of Justice Hemant Gupta and Justice Sudhanshu Dhulia of the apex court in the case of Narayan & Ors Vs Manager Royal Sundaram Alliance Insurance Co. Ltd. & Ors increased the compensation of the claimants after taking into consideration the future prospects.
BRIEF FACTS
The factual matrix of the case is that the accident occurred when the deceased was driving a two-wheeler and the deceased died on the spot. Thereafter, the claim petition was filed by the deceased’s parents and younger brother. The tribunal awarded the amount of Rs 10,05,000/- and the matter was taken to the High Court which after considering the submissions of the insurance company awarded them increased compensation on the opinion that the income of the deceased should be taken as Rs.15,000/- and the multiplier should have been eighteen instead of fifteen. The High Court further increased the compensation granted under the head of loss of consortium to Rs.75,000/-. Therefore, the High Court awarded the amount of Rs.17,70,000/- with the amount to be given at 6% interest.
COURT’S OBSERVATION
The apex court held that the Tribunal and the High Court have erred in not granting future prospects to the claimants in terms of the judgement of National Insurance Company v. Pranay Sethi & Ors. Accordingly, the appeal is allowed and the future prospects at the rate of 40% is granted to the claimants. The total compensation payable to the appellants would be Rs 37,80,000/- at 7.5% interest.
CASE NAME- Narayan & Ors Vs Manager Royal Sundaram Alliance Insurance Co. Ltd. & Ors
CITATION- CIVIL APPEAL NO. 6855 OF 2022
CORUM- Justice Hemant Gupta and Justice Sudhanshu Dhulia
DATE- 22.09.22
Read Judgment @Latestlaws.com
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