Delhi High Court
Pramila Devi & Anr vs National Insurance Co Ltd & Ors on 21 August, 2017
$~20
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 21st August, 2017
+ MAC.APP. 953/2016
PRAMILA DEVI & ANR ..... Appellants
Through: Mr. Vinod Sharma, Advocate
versus
NATIONAL INSURANCE CO LTD & ORS ..... Respondents
Through: Ms. Rakhi Dubey, Adv. for R-1
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. Ashish, a bachelor, aged 25 years, died in a motor vehicular
accident that occurred on the intervening night of 29 /30.08.2012 due
to negligent driving of a motor vehicle bearing registration no.UP-
14CT-4464 admittedly insured against third party risk with the first
respondent (insurer). Accident claim case (MAC petition no.175/12)
was instituted by the appellants joining the two siblings of the
deceased as co-petitioners seeking compensation. The said petition
was allowed by the tribunal, by judgment dated 31.05.2016, awarding
compensation in the sum of Rs.7,00,924/- with interest at the rate of
12% p.a.. The said amount includes Rs.5,25,924/- calculated as loss of
dependency, Rs.1,00,000/- towards loss of love and affection,
Rs.50,000/- towards loss to estate and Rs.25,000/- towards funeral and
transport expenses.
2. The appellants press the appeal seeking enhancement on the
ground that the element of future prospects should have been added
while calculating the loss of dependency. It is also their contention
that the multiplier of 18 should have been chosen on the basis of the
age of the deceased and further that the non-pecuniary damages are
inadequate.
3. Per contra, the counsel for the insurance company submitted
that while the award is appropriate, the rate of interest levied is
excessive.
4. The plea about the multiplier cannot be accepted since the
choice of the multiplier as made by the tribunal is in accord with the
rulings of the Supreme Court in General Manager, Kerala State Road
Transport Corporation vs. Susamma Thomas & Ors., (1994) 2 SCC
176; U.P. State Road Transport Corporation and Ors. vs. Trilok
Chandra and Ors., (1996) 4 SCC 362 and of this court in National
Insurance Co. Ltd. Vs. Mohammed Siddique & Ors., MACA 431/2016,
decided on 18.07.2017. It is the age of the deceased and that of the
claimants, whichever is higher, which is to be the basis of the choice
of the multiplier.
5. The claimants had shown by salary slips of the deceased for the
period July and August 2012 (page 263-265 of the tribunal's record)
that the deceased was in regular employment with M/s. Tech
Mahindra as Service Engineer. Having regard to the said facts and the
emoluments earned, it is clear that his income would have seen
progressive rise in future. With such irrefutable evidence having been
brought in, the element of future prospects should have been factored
in. [see judgment dated 28.03.2016 in MAC.APP. 548/2013 United
India Insurance Co. Ltd. v. Kamla & Ors.].
6. The loss of dependency, after deducting 50% towards
personal and living expenses on the multiplier of 14, is thus calculated
as (Rs.6,261/- x 130/100/2 x 12 x 14) Rs.6,83,701.20, rounded off to
Rs.6,84,000/-.
7. While the award of Rs.50,000/- towards loss to estate as granted
by the tribunal is correct, having regard to the date of the accident and
death, the award under the other non-pecuniary heads of damages is
deficient. Following the ruling in Shriram General Insurance Co Ltd
v. Usha, MAC.APP.No.160/2015, decided on 05.05.2016, award of
Rs.1,50,000/- is granted towards loss of love and affection and
Rs.50,000/- towards funeral expenses. The total compensation thus
comes to (Rs.6,84,000/- + Rs.1,50,000/- + Rs.50,000/- + Rs.50,000/-)
Rs.9,34,000/-. The award is enhanced accordingly.
8. The submission of the insurer about the rate of interest is
correct. There are no special reasons recorded by the tribunal for
granting such higher rate of interest. Following the consistent view
taken by this court, the rate of interest is reduced to 9% per annum
from the date of filing of the petition till realization. [see judgment
dated 22.02.2016 in MAC.APP. 165/2011 Oriental Insurance Co Ltd
v. Sangeeta Devi & Ors.]
9. The insurance company will deposit the requisite amount in
terms of the modified award with the tribunal within 30 days, making
it available to be released to the claimants.
10. The appeal is disposed of in above terms.
11. Dasti.
R.K.GAUBA, J.
AUGUST 21, 2017
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