Partly allowed

New India Assurance Company Limited v. Tulsidas and 5 Others

Allahabad HC18 Jan 2021FAFO/20/2021

Case brief

AI extract

What is this about?

The single judge dismissed part of the appeal by an insurance company against a Motor Accident Claims Tribunal award. The court accepted the argument that future prospects for a self-employed deceased should be calculated at 40%, leading to a reduction in total compensation. The income calculation was deemed not excessive.

What did the court decide?

Compensatory claim reduced to Rs. 9,37,200; income calculation of Rs. 6,000/month upheld; 50% settlement on self-reliance maintained.

New India Assurance Company Limited Vs Tulsidas… — Writ and Judicial Review | Allahabad HC (2021)

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Court No. - 1

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Case :- FIRST APPEAL FROM ORDER No. - 20 of 2021

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Appellant :- New India Assurance Company Limited Respondent :- Tulsidas And 5 Others Counsel for Appellant :- Pradeep Kumar Sinha

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Hon'ble Vivek Agarwal,J.

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Heard Sri Pradeep Kumar Sinha, learned counsel for the appellant-insurance company.

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This appeal has been filed on behalf of the insurance company being aggrieved of award dated 09.09.2020 passed by learned Motor Accident Claims Tribunal, Hamirpur in M.A.C.P. No. 03 of 2019 on two grounds namely, notional income of the deceased for an accident which took place on 10.11.2018 has been taken as Rs. 6,000/- (six thousand rupees) per month which is excessive and secondly, learned claims tribunal has awarded future prospects @ 50% whereas in the light of the law laid down in case of National Insurance Company Limited Vs. Pranay Sethi and others as reported in (2017) 16 Supreme Court Cases 680, since, deceased was self employed, future prospects are to be calculated @ 40% only.

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After hearing learned counsel for the appellant-insurance company, it is apparent that for an accident which took place in 2018, computation of income at Rs. 6,000/- (six thousand rupees) per month, cannot said to be excessive. However, there is substance in the arguments that future prospects are required to be computed @ 40% and this argument deserves to be accepted and is accepted.

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Income of the deceased has been taken at Rs. 6,000/- (six thousand rupees) per month or Rs. 72,000/- (seventy two thousand rupees) per annum. Admittedly, deceased was a bachelor, therefore, 50% amount is to be deducted towards the income which deceased must have been spending on self. When 40% is added on this amount of Rs. 36,000/- (thirty six thousand rupees), then it will come out to Rs. 50,400/- (fifty thousand four hundred rupees) in place of Rs. 54,000/- (fifty four thousand rupees) computed by learned claims tribunal. Claims tribunal has applied multiplier of 18, which is correct in the light of the law laid down in case of Smt. Sarla Verma and others vs. Delhi Transport Corporation and another as reported in (2009) 6 SCC 121, taking total compensation to Rs. 9,07,200/- (nine lakhs seven thousand two hundred rupees). Over and above which claimants are entitled to a sum of Rs.

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30,000/- (thirty thousand rupees) which will take total compensation to Rs. 9,37,200/- (nine lakhs thirty seven thousand two hundred rupees) in place of Rs. 9,91,000/- (nine lakhs ninety one thousand rupees) awarded by learned claims tribunal. Therefore, there will be a reduction of Rs. 53,800/(fifty three thousand eight hundred rupees) in the amount awarded by learned tribunal.

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In above terms, appeal is partly allowed and is disposed off. Other terms and condition of the award shall remain intact.

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Order Date :- 18.1.2021 Vikram/-

New India Assurance Company Limited v. Tulsidas and 5 Others

Case brief

What is this about?

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New India Assurance Company Limited v. Tulsidas and 5 Others

Case brief

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