Delhi High Court
National Insurance Co. Ltd. vs Nanno & Ors. on 16 November, 2017
$~4
IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 16th November, 2017
+ MAC.APP. 133/2016 & CM No.4607/2016(stay)
NATIONAL INSURANCE CO. LTD. ..... Appellant
Through: Mr. Amit Gaur & Mr. Pradeep
Gaur, Advs.
versus
NANNO & ORS. ..... Respondents
Through: Mr. Dilawan Singh, Adv. for
R1.
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. Mohammad Laik, bachelor son of the first respondent (the
claimant), aged 31 years old, suffered injuries in motor vehicular
accident that occurred on 01.05.2013 due to negligent driving of
motor vehicle described as Gramin Seva bearing registration no.
DL-2W-4655 by the second respondent (the driver). Since the said
vehicle was registered in the name of third respondent (the owner),
and insured against third party risk for the period in question with
the appellant (insurer), the liability to pay compensation as
determined in the sum of Rs.12,41,968/- by the tribunal by its
judgment dated 09.11.2015 of the accident claim case (suit
no.185/2013) of the first respondent, initially was fastened upon the
insurer.
2. The insurer by the appeal at hand, questions the award of
compensation in calculating the loss of dependency, by adding the
element of future prospects of increase to the extent of fifty percent
(50%) and awards granted under the heads of non-pecuniary
damages being excessive. The insurer had also pleaded before the
tribunal that there was breach of terms and conditions of the
insurance policy as the vehicle in question which was meant to
carry six passengers, besides one driver, was overloaded. Since it
carried 16-17 passengers at the relevant point of time, the tribunal
had granted recovery rights in favour of the insurer, its plea now
being that it should have been exonerated.
3. In view of the dispensation 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., the
element of future prospects of increase will have to be restricted
only to the extent of forty percent (40%), the income of the
deceased having been calculated notionally with the help of
minimum wages (Rs.7,722/-). Similarly, the award granted under
the non pecuniary heads of damages as Rs.20,000/- for funeral
expenses, Rs.1,00,000/- for loss of love and affection and
Rs.10,000/- for loss of estate also need modification as per ruling in
Pranay Sethi (supra).
4. The loss of dependency is thus recomputed as
(7722x140/100/2x12x16) Rs.10,37,836.8/- rounded off to
Rs.10,38,000/- and only the amounts of Rs.15,000/- each towards
loss of estate and funeral expenses are added under the non-
pecuniary heads of damages. Thus, the total compensation is
determined as (10,38,000+15,000+15,000) Rs.10,68,000/- (Rupees
Ten Lacs Sixty Eight Thousand Only).
5. The award is modified accordingly. It shall carry interest as levied
by the tribunal.
6. Since the interest of the insurer is duly protected by the grant of
recovery rights, there is no case made out for total exoneration in
the context of breach of terms and conditions of the insurance
policy.
7. By order dated 08.02.2016, insurance company had been directed to
deposit the entire awarded amount with up-to-date interest with the
Tribunal and out of which 50% was permitted to be released. The
tribunal shall now calculate the amount payable to the claimants in
terms of the modification ordered above and release the same to the
claimants, refunding the excess in deposit, if any, to the insurance
company.
8. The statutory amount shall be refunded.
9. The appeal is accordingly disposed of.
R.K.GAUBA, J.
NOVEMBER 16, 2017/umang
