Delhi High Court
Reliance General Insurance Co Ltd vs Zile Singh And Ors on 6 December, 2017
$~R-655
IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on : 6th December, 2017
+ MAC.APP. 1186/2012
RELIANCE GENERAL INSURANCE CO LTD..... Appellant
Through: Mr. A.K. Soni, Advocate.
versus
ZILE SINGH AND ORS ..... Respondents
Through: None.
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. The first respondent (the claimant), had instituted an accident
claim case (MACT No.316/11), on 26.09.2011, seeking compensation
under Sections 166 and 140 of Motor Vehicles Act, 1988, for injuries
suffered by him in a motor vehicular accident, that occurred on
27.04.2011, due to negligent driving of Innova Car bearing
registration No. DL-4CNE-0476, which was admittedly insured
against third party risk for the period in question with the appellant
(insurer).
2. After inquiry, the Tribunal, by its judgment dated 24.08.2012,
awarded compensation in the total sum of Rs.20,89,444/- directing the
insurer to pay with interest @ 12% per annum calculating it thus:-
A) Pecuniary damages (Special
damages)
a) Future Medical expenses Rs.1,00,000/-
b) Special diet Rs. 25,000/-
c) Conveyance charges Rs. 25,000/-
d) Future Medical Expenses Rs. 1,00,000/-
e) Loss of income Rs. 46,956/-
f) Loss of future income Rs.14,42,488/-
B) Non-pecuniary damages (General
damages)
a) Pain, sufferings, inconvenience and Rs.2,00,000/-
frustration
b) Loss of amenities and disfigurement Rs.1,50,000/-
Total: Rs.20,89,444/-
3. The appeal was filed by the insurer questioning the computation
of compensation.
4. The matter was put in the list of "Regulars" by order dated
15.03.2016. When it is called out for hearing, in its own turn, there is
no appearance for the claimant. Learned counsel for the insurer has
been heard and, with his assistance, the record perused.
5. The claimant has proved before the Tribunal that he had
suffered grievous injuries which included fracture in the right lower
limb. The said injuries have rendered him permanently disabled as
certified by a disability certificate (Ex.PW3/1), issued by a board of
doctors of Dr. Baba Saheb Ambedkar Hospital. The disability
certificate would state that he is a case of post-traumatic stiffness of
the right hip, right knee and right ankle, the physical impairment being
64%. The claimant had stated before the Tribunal that he was
working as a security guard in a private company.
6. The Tribunal has taken the functional disability as 64%, the
same as the medical opinion. This Court agrees with the submissions
of the insurer that the said assessment is excessive. In the given facts
and circumstances, the functional disability is taken as 30%.
7. The error in inclusion of 50% towards future prospects of
increase in income over and above the notional income (Rs.7826/-)
which is the minimum wages for matriculate on the relevant date, also
requires correction in view of the ruling of a Constitution Bench of the
Supreme Court, rendered on 31.10.2017 in SLP (C) 25590/2014,
National Insurance Company Ltd. Vs. Pranay Sethi and Ors. Future
prospects are reduced to 40%.
8. The loss of future income due to disability is re-computed as
(7826 X 140/100 X 30/100 X 12 X 16) Rs.6,31,088.64 rounded off to
Rs.6,31,089/-. Since the Tribunal has awarded Rs.14,42,488/- towards
loss of future income, the compensation is to be reduced by (14,42,488
- 6,31,089) Rs.8,11,399/-.
9. It is noted that the Tribunal has added in the award
Rs.1,00,000/- twice under the head "future medical expenses". The
said amount is thus reduced by Rs.1,00,000/-.
10. Therefore, there has to be total reduction of (8,11,399 +
1,00,000) Rs.9,11,399/-. The award is reduced to (20,89,444 -
9,11,399) Rs.11,78,045/- rounded off to Rs.11,79,000/- (Rupees
Eleven Lakhs Seventy Nine Thousand Only).
11. There are no special reasons set out for levy of interest at 12%
per annum, which is undoubtedly high. Following the consistent view
taken by this Court, the rate of interest is reduced to 9% (nine percent)
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.].
12. By order dated 16.11.2012, the insurance company had been
directed to deposit 50% of the awarded amount with interest at 9% per
annum with UCO Bank, Delhi High Court Branch, and out of such
deposit, Rs. 2,00,000/- was permitted to be released to the claimant.
The Registry will now calculate the balance amount payable to the
claimant, in terms of the modification ordered above, refunding the
excess in deposit, if any, to the insurance company. Conversely, if
there is any deficiency, the insurance company will make it good by
requisite deposit, before the Tribunal within 30 days.
13. The statutory amount shall be refunded to the appellant only
after proof is shown of the award having been satisfied.
14. The appeal stands disposed of in above terms.
R.K.GAUBA, J.
DECEMBER 6, 2017
srb
