National Insurance Company Ltd vs Shashi And Ors.
2012 Latest Caselaw 3455 Del

*       IN THE HIGH COURT OF DELHI AT NEW DELHI

                                       Date of decision: 23nd May, 2012
+       MAC.APP. 1070/2011

        NATIONAL INSURANCE COMPANY LTD..... Appellant
                       Through: Ms. Manjusha Wadhwa,
                                Advocate
                versus

        SHASHI AND ORS.                     ..... Respondent
                     Through:           Mr. Sunil Dalal, Advocate for
                                        R-1 to R-7.
                                        Respondent No.8 in person.

        CORAM:
        HON'BLE MR. JUSTICE G.P.MITTAL

                           JUDGMENT

G. P. MITTAL, J. (ORAL)

1. The Appeal is for reduction of compensation of ` 7,22,770/-

awarded in favour of Respondents No. 1 to 7 in respect of death of Neter Pal who died in a motor accident which occurred on 22.03.2010.

2. The Appellant Insurance Company alleged breach of the terms of policy on the ground that the driver did not possess a valid driving licence. The driving licence produced by Respondent No.8 on the last date of hearing has been got verified by the Appellant Insurance Company. Ms. Manjusha Wadhwa, learned counsel for the Appellant states that the licence and the

report given by the Transport Department, West Zone, Janak Puri has been found to be genuine. The ground of exoneration is given up by the Appellant.

3. There is twin challenge to the judgment. It is urged by the learned counsel for the Appellant that Respondents No.1 to 7 claimed the deceased's income to be `6,000/- per month. He was aged about 63 years. The Claims Tribunal erred in assuming the deceased's income to be `7914/- (after making addition of 50% in the minimum wages); the award of compensation of `1,00,000/- towards loss of love and affection, argues the learned counsel, is excessive and exorbitant.

4. On the other hand, it is urged by the learned counsel for Respondents No.1 to 7 that the award of compensation was just and reasonable. The addition on account of inflation was in terms of the judgment of this Court in National Insurance Company Limited v. Kailash Devi & Ors., 2 (2008) ACC 770.

5. Admittedly, the deceased was aged 63 years and a multiplier of '7' was admissible and applied by the Claims Tribunal. Addition on account of future prospects was not admissible (Sarla Verma (Smt.) & Ors. v. Delhi Transport Corporation & Anr., (2009) 6 SCC 121) and addition on account of inflation, particularly when the deceased was aged 63 years, was not permissible as per the judgment of this Court in Dhaneshwari & Another v. Tajeshwar Singh & Others, MAC. APP 997/2011

decided on 19.3.2012.

6. In view of above discussion, the loss of dependency comes to `4,03,200/- (6,000/- x 4/5 x 12 x 7).

7. The Claims Tribunal awarded a sum of `1,00,000/- towards loss of love and affection. Loss of love and affection can never be measured in terms of money. Thus, uniformity has to be adopted by the Courts while granting non-pecuniary damages. The Supreme Court in Sunil Sharma v. Bachitar Singh (2011) 11 SCC 425 and in Baby Radhika Gupta v. Oriental Insurance Company Limited (2009) 17 SCC 627 granted only ` 25,000/- (in total to all the claimants) under the head of loss of love and affection. Thus, I would reduce the compensation under this head from `1,00,000/- to ` 25,000/- only.

8. The compensation is re-computed as under:-

Sl. Compensation under Awarded by Awarded by various heads the Claims this Court No. Tribunal

1. Loss of Dependency `5,31,770/- `4,03,200/-

2. Loss of Love & Affection ` 1,00,000/- ` 25,000/-

3. Loss of Consortium ` 10,000/- ` 10,000/-

4. Funeral Expenses ` 25,000/- ` 25,000/-

         5.         Loss to Estate                ` 5,000/-        ` 5,000/-

         6.         Medical Bills                 `51,000/-        `51,000/-





                                   Total     ` 7,22,770/- ` 5,19,200/-

9. The compensation stands reduced from `7,22,770/- to `5,19,200/-.

10. The excess amount of `2,03,570/- along with the interest and the interest accrued, if any, during the pendency of the Appeal shall be refunded to the Appellant Insurance Company out of the deposit lying in the State Bank of India, Tis Hazari Branch, Delhi.

11. The statutory amount of `25,000/- shall be refunded to the Appellant Insurance Company.

12. The Appeal is allowed in above terms.

13. Pending Applications also stand disposed of.

(G.P. MITTAL) JUDGE MAY 23, 2012 vk