Allahabad High Court
Smt. Laxmi Devi And 2 Others vs Iffco Tokia General Insurance Co. Ltd. ... on 27 October, 2025
HIGH COURT OF JUDICATURE AT ALLAHABAD
Neutral Citation No. - 2025:AHC:188095
HIGH COURT OF JUDICATURE AT ALLAHABAD
FIRST APPEAL FROM ORDER No. - 3002 of 2016
Smt. Laxmi Devi And 2 Others
.....Appellant(s)
Versus
Iffco Tokia General Insurance Co. Ltd. And 2 Others
.....Respondent(s)
Counsel for Appellant(s)
:
Vidya Dhar Dubey
Counsel for Respondent(s)
:
, Pawan Kumar Singh
Court No. - 38
HON'BLE SANDEEP JAIN, J.
1. The instant appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the claimants against the impugned judgment and award dated 22.04.2016 passed by the Motor Accident Claims Tribunal/Additional District Judge,Court No.4, Aligarh in MACP No. 478 of 2015, Smt. Laxmi Devi & others Vs. Iffco Tokio General Insurance Co. Ltd & others, whereby, compensation of Rs.10,56,800/- alongwith interest at the rate of 7% per annum has been awarded to the claimants for the untimely death of Pawan Kumar(deceased) in an accident which occurred on 21.03.2015.
2. Since there is no cross appeal by the owner/driver and insurer of the offending Truck No.HR-55-M 3361, as such, only the issue of compensation is being decided by this appeal.
3. The tribunal also concluded that the deceased had contributed towards the accident as such, deducted an amount of 10% towards contributory negligence.
4. The claimants claimed that the deceased was aged about 32 years and was working as Manager in Hotel Ganesh Garden, Aligarh and was drawing salary of Rs.12,000/- per month but the tribunal has assessed his income as Rs.9,000/- per month, deducted 1/3 towards personal expenses, applied multiplier of 16, awarded Rs.10,000/- towards loss of consortium and Rs.5,000/- towards loss of estate, Rs. 5000/- towards funeral expenses. In this way, after deducting 10% towards contributory negligence, the tribunal awarded a total compensation of Rs.10,56,800/- along with interest @ 7 per cent per annum to the claimants, which was ordered to be indemnified by the insurer of the offending vehicle.
5. Learned counsel for the appellant submitted that no compensation towards future prospect has been awarded by the tribunal and the tribunal has awarded less amount towards loss of estate, funeral expenses and loss of consortium keeping in view the Constitution Bench judgement of the Apex Court in the case of National Insurance Co. Ltd vs Pranay Sethi & others, (2017) 16 SCC 680.
6. Learned counsel for the respondent-insurance company is present and has requested for the case to be passed over but, since half of the judgement has been dictated, as such, his request is declined.
7. It is apparent that as per Rule 220A of the U.P. Motor Vehicle Rules 1998, the claimants are entitled to future prospect at the rate of 50%. As per the decision of the Constitutional Bench of the Apex Court in Pranay Sethi(supra), the claimants are entitled to loss of consortium of Rs.40,000/- and Rs.15,000/- each towards loss of estate and funeral expenses, which is to be enhanced at the rate of 10% after every three years.
8. In the case of Magma General Insurance Company Ltd. Vs. Nanu Ram @ Chuhru Ram & others, (2018) 18 SCC 130, the Apex Court has awarded Rs.40,000/- each towards spousal consortium, parental consortium and filial consortium.
9. In view of the above precedents of the Apex Court and the statutory Rules of 1998, the claimants are entitled to 50% future prospect since the deceased was aged only 32 years old but the tribunal has not awarded any compensation towards future prospect to the claimants, which is erroneous.
10. In view of the above legal position, the compensation payable to the claimants is redetermined as under:-
S.No.
Compensation Heads
Amount Awarded(in Rs.)
In Accordance with.
1.
Monthly income of deceased
9,000/-
-
2.
Annual Income of deceased
9,000X12=1,08,000/-
Pranay Sethi(supra)
3.
Less 1/3rd deduction towards personal expenses
36,000/-
Pranay Sethi(supra)
4.
Net annual income on which claimants were dependent
72,000/-
Pranay Sethi(supra)
5.
Add future prospects @50% since deceased was below 40 years
36,000/-
Pranay Sethi(supra)
6.
Total annual dependency of claimants on deceased
1,08,000/-
Pranay Sethi(supra)
7.
Multiplier applied since age of deceased was 32 years
Pranay Sethi(supra)
8.
Total loss of dependency to the claimants
1,08,000X16=1,728,000/-
Pranay Sethi(supra)
9.
Less 10% towards contributory negligence of the deceased
1,72,800/-
-
10.
Net compensation
15,55,200/-
-
11.
Loss of consortium to widow and 2 minor daughters @Rs.40,000/-each, increased by 10% after every 3 years
48,400X3=1,45,200/-
Pranay Sethi(supra) and Magma General Insurance Co. Ltd. (supra)
12.
Loss of estate @ Rs.15,000/- increased by 10% after every 3 years.
18,150/-
Pranay Sethi(supra)
13.
Funeral Expenses@ Rs.15,000/- increased by 10% after every 3 years.
18,150/-
Pranay Sethi(supra)
14.
Total compensation
17,36,700/-
11. In this way, the claimants are entitled to total compensation of Rs.17,36,700/- alongwith interest @ 7% per annum from the date of filing of the claim petition till it?s actual payment, which is to be indemnified by the insurer of the offending truck.
12. The appeal is allowed. The award of the tribunal is modified to the above extent.
13. If any amount has been paid by the insurance company previously, then the insurance company is entitled to adjust it accordingly. The insurance company is directed to deposit the enhanced amount of compensation before the concerned tribunal within two months. The tribunal will be at liberty to proportionally award the enhanced amount of compensation to the claimants keeping in view their age.
14. The original record of the lower court be sent back, forthwith.
15. Office is directed to remit back the statutory deposit made by the Insurance Company to the Tribunal concerned, forthwith.
(Sandeep Jain,J.)
October 27, 2025
Himanshu
