Delhi High Court
Shri Ram General Insurance Co Ltd vs Sarnam Singh & Ors on 25 August, 2017
$~8
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 25th August, 2017
+ MAC.APP. 461/2016 and CM 21302/2016
SHRI RAM GENERAL INSURANCE CO LTD ..... Appellant
Through: Mr. Priyadarsi Acharya, Advocate
versus
SARNAM SINGH & ORS ..... Respondents
Through: Mr. Neeraj P. Singh, Adv. for R-1
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. The first respondent, then aged 50 years and 5 months,
employed with Bharat Hotels Ltd. as senior assistant, suffered injuries
in a motor vehicular accident that occurred on 24.11.2013 involving
negligent driving of a tempo bearing registration no.UP-79T-1948,
admittedly insured against third party risk with the appellant /
insurance company (insurer), for the period in question. The injuries
left him permanently disabled, in that his right lower limb above knee
had to be amputated. He instituted accident claim case (suit no.45/14)
on 25.02.2014 seeking compensation and, in the course of the inquiry
that followed, it came to be proved through a disability certificate
dated 22.01.2016 issued by a board of doctors of Pt. Madan Mohan
Malaviya Hospital of the Govt. of NCT of Delhi, that his permanent
disability is 85% in relation to the said lower limb.
2. The Motor Accident Claims Tribunal (Tribunal) awarded
compensation in the total sum of Rs.33,34,800/-, by judgment dated
18.04.2016 fastening the liability on the insurance company
(appellant) to pay the same with interest at the rate of 9% p.a., the said
amount inclusive of Rs.30,84,800/- towards loss of future income, this
on the basis of assumption that the functional disability would be
100%.
3. The insurer has come up in appeal questioning the computation
of loss of future income on such basis. It is the contention of the
insurer that the disability has been over assessed.
4. The reasons set out by the tribunal in the impugned judgment to
assume the functional disability to the extent of 100% cannot be
accepted. The fact remains that the claimant had continued to be in
the same job for two years where-after his services were terminated.
In an identically placed case - National Insurance Company Ltd. Vs.
Priti Gupta and Ors., MACA 1068/2016, decided by this court on
24.08.2017, the functional disability of the claimant of the said case,
who had also suffered amputation of one of the lower limbs to the
same extent, was assessed as 80%. The functional disability of the
claimant is assessed on same lines.
5. It is noted that the tribunal did not take into account the last
emoluments drawn by him at Rs.20,774/-, deducting Rs.800/- as
transport allowance to derive the net income of Rs.19,974/- p.m. The
allowance in question was a regular perk which would result in
corresponding savings and, therefore, cannot be kept out.
6. The loss of future income due to functional disability to the
extent of 80% is, thus, recomputed with the multiplier of 13, as
applied by the tribunal on the basis of income including above
allowance at (Rs.20,774/- x 80/100 x 12 x 13) Rs.25,92,595/-. This
would mean the compensation, as awarded by the tribunal, has to be
reduced by [Rs.30,84,800/- (-) 25,92,595/-] Rs.4,92,205/-.
7. The compensation is thus reduced to [Rs.33,34,800/- (-)
Rs.4,92,205/-] Rs.28,42,595/-, rounded off to Rs.28,43,000/-. The
award is modified accordingly. Needless to add, it shall carry interest
as levied by the tribunal.
8. By order dated 30.05.2016, the insurance company had been
directed to deposit the entire awarded amount with interest and out of
such deposit, thirty percent (30%) was allowed to be released. The
tribunal shall now calculate the amount payable to the claimant in
terms of the modified award, releasing the balance to him, refunding
the excess in deposit to the insurance company.
9. The statutory amount shall be refunded.
10. The appeal and the pending application are disposed of in above
terms.
R.K.GAUBA, J.
AUGUST 25, 2017
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