Delhi High Court
United India Insurance Co. Ltd. vs Ramesh Kumar & Ors. on 27 November, 2017
$~R-568
IN THE HIGH COURT OF DELHI AT NEW DELHI
Decided on: 27th November, 2017
+ MAC.APP. 880/2012 and CM APPL.13984/2012 (stay)
UNITED INDIA INSURANCE CO. LTD...... Appellant
Through: Ms. Suman Bagga, Advocate
Versus
RAMESH KUMAR & ORS. ..... Respondents
Through: Mr. O.P.Mannie, Advocate for R-1.
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT (ORAL)
1. The first respondent (claimant), then aged 46 years, employed
in Delhi Police as Head Constable, suffered injuries in a motor
vehicular accident that occurred on 06.07.2006, due to negligent
driving of Maruti car bearing registration no.HR-26L-2188, which was
admittedly insured against third party risk for the period in question
with appellant (insurer). On his accident claim case (MACT Case
No.375/2010) instituted on 15.09.2006, the tribunal held inquiry and,
by judgment dated 06.03.2012, awarded total compensation in the sum
of Rs.11,99,056/-, calculating it thus:-
Sl. Heads Amount
No. (in Rs.)
1. Medical expenses 42,940/-
2. Loss of income 21,700/-
3. Loss of future income 7,54,416/-
4. Special diet expenses 25,000/-
5. Conveyance charges 25,000/-
6. Future medical treatment expenses 30,000/-
7. Pain, suffering, mental shock and trauma 1,50,000/-
8. Loss of amenities and enjoyment of life 1,50,000/-
Total 11,99,056/-
2. The tribunal directed the insurer to pay the same with interest @
7.5% per annum and added liability of counsel fee at Rs.55,000/-,
besides Rs.7,000/- as out of pocket expenses, for the counsel.
3. The appeal at hand challenges the computation of
compensation. It is pointed out that the tribunal has found on the basis
of, inter alia, the disability certificate (Ex.PW-9/A) that the appellant
has suffered permanent disability in relation to the right lower limb,
the functional disability being thirty per cent (30%). It awarded
compensation for loss of future income on the multiplier of 13, as per
the then age of the claimant, ignoring the fact that there was no
immediate loss of employment or earnings. The insurer also questions
the non-pecuniary damages and the inclusion of counsel fee and out of
pocket expenses in the award.
4. The learned counsel for the claimant fairly conceded that there
was no loss of employment or earnings immediately after the accident.
The claimant has continued to be in the service of Delhi Police. He
was born on 10.08.1960 and thus would retire on 31.08.2020 upon
attaining the age of superannuation. In these circumstances, the loss
of future income due to disability would need to be re-calculated with
the multiplier of 9.
5. Thus, the loss of future income due to disability is re-computed
as (16,120/- x 30/100 x 12 x 9) Rs.5,22,288/-. Since the tribunal had
calculated the damages under loss of future income as Rs.7,54,416/-,
the award needs reduction by (7,54,416 - 5,22,288) Rs.2,32,128/-.
6. In the opinion of this court, the non-pecuniary damages
awarded by the tribunal do not call for any interference. The award is
thus reduced to (11,99,056 - 2,23,128) Rs.9,66,928/- rounded off to
Rs.9,67,000/- (Rupees Nine Lac Sixty Seven Thousand Only).
7. It is, however, noted that the rate of interest is inadequate.
Following the consistent view taken by this Court, the rate of interest
is increased to 9% (nine per cent) 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.].
8. There being no justification for such direction of the tribunal for
payment of counsel fee and out of pocket expenses, they are set aside.
9. The award is modified accordingly.
10. By order dated 17.08.2012, the insurance company had been
directed to deposit forty per cent (40%) of the awarded amount
(excluding counsel fee and out of pocket expenses) with proportionate
interest with UCO Bank, Delhi High Court Branch. The registry shall
now calculate the amount payable to the claimant under the modified
award and release the same. The insurance company will be obliged to
deposit the balance of its liability under the modified award by
requisite deposit with the tribunal within thirty days.
11. The statutory deposit shall be refunded upon proof being shown
of the award having been satisfied.
12. The appeal is disposed of in above terms.
R.K.GAUBA, J.
NOVEMBER 27, 2017
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