Delhi High Court
Yashpal Luthra & Anr. vs United India Insurance Co. Ltd. ... on 17 December, 2009
Author: J.R. Midha
*IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.176/2009
Date of Decision: 17th December, 2009
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YASHPAL LUTHRA & ANR. ..... Appellant
Through : Mr. M.K. Sinha, Adv.
versus
UNITED INDIA INSURANCE CO. LTD. AND ANR ..... Respondent
Through : Mr. L.K. Tyagi and
Mr. Kishore Rawat, Adv.
for R-1.
Mr. D.K. Nag, Adv. with
Ms. Reshmi Rea Sinha, Adv.
for IRDA.
Mr. Pankaj Seth, Adv. for
Royal Sundaram Alliance
Insurance Co. Ltd. and
Universal Sompo General
Insurance Co. Ltd.
Mr. Pradeep Gaur, Adv. for
National Insurance Co. Ltd.
Ms. Manjusha Wadhwa, Adv.
for Oriental Insurance Co.
Ltd.
Ms. Suman Bagga, Adv. for
Choldamandalam.
Mr. Kamal Deep, Adv. for
Shri Ram General Insurance
Co. Ltd.
Mr. Sameer Nandwani, Adv.
for Reliance General
Insurance Co. Ltd. with Mr.
Ranjan Sinha, Manager
(Legal).
Mr. Sameer Nandwani, Adv.
for Ms. Anjali Bansal, Adv.
for Bharti Axa General
Insurance Co. Ltd. and
Raheja QBE General
Insurance Co. Ltd. with Mr.
Vivek Saxena.
Mr. Arun Mohan, Sr. Adv. as
amicus curiae.
MAC.APP.No.176/2009 Page 1 of 6
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
1. Whether Reporters of Local papers may YES
be allowed to see the Judgment?
2. To be referred to the Reporter or not? YES
3. Whether the judgment should be YES
reported in the Digest?
JUDGMENT (Oral)
1. The appellants have challenged the award of the
learned Tribunal whereby compensation of Rs.4,53,300/- has
been awarded to the appellants against respondent No.2
only. The appellants seek enhancement of the award
amount against both the respondents.
2. The accident dated 24th February, 2006 resulted in the
death of Vinod Luthra. The deceased was survived by his
widow and parents who filed the claim petition before the
learned Tribunal.
3. On 24th February, 2006 at about 9.30 pm, the deceased
was returning home on motorcycle bearing No.DL-7SAU-2074
being driven by his friend. The deceased was sitting on the
pillion of the said motorcycle. At Ahuja Park red light near
Lodhi Road Complex, the aforesaid motorcycle was hit by an
unknown vehicle, due to which the deceased fell down and
suffered fatal injuries.
4. The deceased was aged about 24 years at the time of
the accident. In the absence of any documentary proof of
income, the learned Tribunal took the minimum wages of
Rs.3,300/- for unskilled worker, deducted 1/3rd towards his
personal expenses and applied the multiplier of 17 to
compute the loss of dependency at Rs.4,48,800/-. The
learned Tribunal has awarded Rs.2,000/- towards funeral
expenses and Rs.2,500/- towards loss of estate. The learned
Tribunal has awarded total compensation of Rs.4,53,300/- to
the appellants.
5. Respondent No.1 contested the claim petition before
the learned Tribunal on the ground that respondent No.1 has
not covered the risk of a pillion rider on the two-wheeler.
The learned Tribunal accepted the plea of respondent No.1
and exonerated respondent No.1 from the liability. The
learned Tribunal passed the award of Rs.4,53,300/- against
respondent No.2 only.
6. The appellants have urged the following grounds at the
time of the hearing of this appeal:-
(i) The motorcycle in question was insured by
respondent No.1 under a comprehensive/package
policy which covers the risk of a pillion rider and,
therefore, respondent No.1 is liable to pay the
award amount to the appellants.
(ii) The multiplier be enhanced from 17 to 18.
(iii) The compensation be awarded for loss of love and
affection and loss of consortium.
7. With respect to the liability of respondent No.1 under
the policy, the General Manager of respondent No.1 was
examined by this Court under Section 165 of the Indian
Evidence Act on 5th November, 2009 when he admitted the
liability of respondent No.1 in respect of the deceased and
undertook to deposit the entire award amount along with
interest as per the award of the learned Tribunal within 30
days. This Court also examined the officers of Insurance
Regulatory and Development Authority (IRDA) and Tariff
Advisory Committee (TAC) on 26th October, 2009. The IRDA
issued circular dated 16th November, 2009 and convened a
meeting of all the Insurance Companies on 26 th October,
2009 when all the Insurance Companies admitted their
liability in respect of a pillion rider on a two wheeler and
occupants in a private car under the package/comprehensive
policy. IRDA has also issued a circular dated 3rd December,
2009 to all the Insurance Companies to implement the
circular dated 16th November, 2009 within a fixed time
frame. The detailed judgment in this regard has been
passed by this Court on 9th December, 2009.
8. The contrary finding of the learned Tribunal
exonerating respondent No.1 is set aside.
9. The deceased was aged 24 years at the time of the
accident and the appropriate multiplier according to the
recent judgment in the case of Sarla Verma Vs. Delhi
Transport Corporation, 2009 (6) Scale 129 is 18. The
multiplier is, therefore, enhanced from 17 to 18.
10. The learned Tribunal has not awarded amount towards
loss of love and affection and loss of consortium. Rs.10,000/-
is awarded towards loss of love and affection and Rs.5,000/-
is awarded towards loss of consortium.
11. Taking the income of the deceased to be Rs.3,300/-,
deducting 1/3rd towards personal expenses and applying the
multiplier of 18, the loss of dependency is computed to be
Rs.4,75,200/-. Adding Rs.10,000/- towards loss of love and
affection, Rs.5,000/- towards loss of consortium and
Rs.2,000/- towards loss of estate and Rs.2,500/- towards
funeral expenses, the total compensation is computed at
Rs.4,94,700/-.
RELIEF
12. The appeal is allowed and the award amount is
enhanced from Rs.4,53,300/- to Rs.4,94,700/-. The learned
Tribunal has awarded interest @ 9% per annum which is not
disturbed on the original award amount of Rs.4,53,300/-.
However, on the enhanced award amount, the rate of
interest shall be @7.5% per annum from the date of filing of
the petition till realization.
13. Respondent No.1 has deposited Rs.5,71,399/- with UCO
Bank in terms of the order dated 5th November, 2009.
14. The UCO Bank is directed to release Rs.75,000/- to
appellant No.1, Rs.75,000/- to appellant No.2 and Rs.71,399/-
to respondent No.3. The remaining amount of Rs.3,50,000/-
be kept in three fixed deposits in the following manner:-
(i) Fixed deposit of Rs.1,20,000/- in the name of
appellant No.1 for a period of two years.
(ii) Fixed deposit of Rs.1,20,000/- in the name of
appellant No.2 for a period of three years.
(iii) Fixed deposit of Rs.1,10,000/- in the name of
respondent No.3 for a period of one year.
15. The enhanced award amount be deposited by
respondent No.1 with UCO Bank within a period of 30 days
by means of a cheque drawn in the name of UCO Bank A/c
Yashpal Luthra through Mr. M.M. Tandon, Member-Retail
Team, UCO Bank Zonal, Parliament Street, New Delhi (Mobile
No. 09310356400) within 30 days.
16. Upon the enhanced award amount being deposited,
UCO Bank is directed to release the same to respondent No.3
only by transferring the said amount to her Saving Bank
Account.
J.R. MIDHA, J
DECEMBER 17, 2009
