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The New India Assurance Company ... vs Om Prakash & Ors.
2017 Latest Caselaw 7149 Del

Citation : 2017 Latest Caselaw 7149 Del
Judgement Date : 11 December, 2017

Delhi High Court
The New India Assurance Company ... vs Om Prakash & Ors. on 11 December, 2017
$~R-692 & 693
*    IN THE HIGH COURT OF DELHI AT NEW DELHI
                                       Decided on: 11th December, 2017
+      MAC APPEAL 1279/2012 and CM 20950/2012

       THE NEW INDIA ASSURANCE COMPANY
       LTD.                                  ..... Appellant
                     Through: Mr. J.P.N. Shahi, Advocate

                              versus


       OM PRAKASH & ORS.                              ..... Respondents
                    Through:             Mr. Navneet Goyal, Adv. for R-
                                         1&2


+      MAC APPEAL 202/2016

       OM PRAKASH & ANR.                               ..... Appellant
                    Through:             Mr. Navneet Goyal, Advocate

                              versus


       THE NEW INDIA ASSURANCE COMPANY
       LTD. & ORS.                          ..... Respondents
                     Through: Mr. J.P.N. Shahi, Adv. for R-1

CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA

                      JUDGMENT (ORAL)

1. Rakesh, aged 24 years, a bachelor suffered injuries in a motor vehicular accident that occurred on 28.06.2017 due to the negligent

driving of a tanker bearing registration no.HR-37A-4035 and died in the consequence. His parents (claimants) instituted accident claim case (MACT 694/2007) on 09.08.2007 seeking compensation.

2. The Motor Accident Claims Tribunal (Tribunal), after inquiry, by judgment dated 05.10.2012, awarded compensation in the sum of Rs.5,95,152/- directing New India Assurance Company Ltd. (insurer) to pay, it admittedly being the insurer against third party risk for the period in question in respect of the offending vehicle adding the liability of interest at the rate of 7.5% p.a., the amount being inclusive of Rs.5,50,152/- towards loss of dependency, Rs.25,000/- for loss of love and affection, and Rs.10,000/- each for funeral expenses and loss to estate.

3. The insurer had come up with appeal (MACA 1279/2012) questioning the calculation of compensation primarily pressing it on the ground of grant of future prospects of increase. Per contra, the claimants by their appeal (MACA 202/2016) seek enhanced compensation on the ground the award is inadequate.

4. The claimants had not been able to strictly prove the earnings of the deceased, which was assumed notionally with the help of minimum wages (Rs.3,9,18/- p.m.). In these circumstances, the element of future prospects of increase was correctly added, though it should have been to the extent of 40%. [see judgment of the 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.

5. The loss of dependency is thus re-computed as [Rs.3,918/- x 140/100 / 2 x 12 x 18] Rs.5,92,401.60, rounded off to Rs.5,93,000/-. The non-pecuniary awards will also have to be brought in sync with the dispensation in Pranay Sethi (supra). Thus, in lieu of the awards granted by the tribunal, Rs.15,000/- each towards loss to estate and funeral expenses are added, raising the compensation to [Rs.5,93,000/- + Rs.15,000/- + Rs.15,000/-] Rs.6,23,000/- (Rupees Six Lakh and twenty three thousand only). The award is modified accordingly.

6. Following the consistent view taken by this Court, the rate of interest is increased 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.]

7. The tribunal had specified the amounts payable to the claimants which is modified. It is directed that 10% of the awarded amount would be released to the first claimant while the balance shall go the second claimant.

8. By order dated 17.12.2012 on MACA 1279/2012, the insurance company was directed to deposit 60% of the awarded amount with up- to-date proportionate interest which was permitted to be released to the claimants. The insurance company will now deposit the balance of its liability in terms of the modified award within 30 days with the tribunal, making it available to be released to the claimant.

9. The statutory amount deposited by the insurer will be refunded after proof is shown of the award having been satisfied.

10. Both the appeals and the pending application are disposed of in above terms.

R.K.GAUBA, J.

DECEMBER 11, 2017/yg

 
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