Allowed

National Insurance Co. Ltd. v. Smt.Savithramma

Karnataka HC12 Jun 2012MFA/3422/2009

Case brief

AI extract

What is this about?

The Karnataka High Court allowed an insurer's appeal against a Motor Accident Claims Tribunal award. The court reduced the loss of dependency amount by changing the personal expense deduction to 1/3rd and the multiplier to 9, reducing total compensation from Rs. 4,05,000 to Rs. 3,33,000.

What did the court decide?

Appeal allowed; compensation reduced from Rs. 4,05,000 to Rs. 3,33,000.

National Insurance Co. Ltd. Vs Smt.Savithramma — Motor Accident Claims | Karnataka HC (2012)

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IN THE HIGH COURT OF KARNATAKA AT BANGALORE

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DATED THIS THE 12^TH DAY OF JUNE 2012

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BEFORE

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THE HON’BLE MR.JUSTICE K.N.KESHAVANARAYANA

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MISCELLANEOUS FIRST APPEAL No.3422/2009 (MV)

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BETWEEN:

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National Insurance Co. Ltd., Mysore Branch, Through Its Regional Office, #144, Subharam Complex, M.G.Road, Bangalore – 560 001. ...Appellant

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(By Shri B.C.Seetharama Rao, Advocate)

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AND:

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Smt. Savithramma, Aged about 52 years, W/o. late H.Honnegowda,

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Sri. L.H.Purushothama, Aged about 36 years, S/o. late H.Honnegowda,

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Sri. L.H.Venkatesh, Aged about 32 years, S/o. late H.Honnegowda,

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Sri. L.H.Ramesh, Aged about 30 years, S/o. late H.Honnegowda,

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All are residents of Laxmipura Village, Naganahalli Post, Mysore Taluk. …Respondents

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(By Shri J.C.Kumar, Advocate)

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This Miscellaneous First Appeal is filed under Section 173(1) of Motor Vehicle Act against the judgment and award dated 09.01.2009 passed in M.V.C. No.1055/2007 on the file of Member, Motor Accident Claims Tribunal, Srirangapatna, awarding a compensation of Rs.4,05,000/- with interest @ 6% per annum from the date of petition till deposit.

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This Miscellaneous First Appeal coming for hearing on this day, the Court delivered the following: -

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JUDGMENT

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This appeal by the insurer is directed against the judgment and award dated 09.01.2009 passed by the Motor Accidents Claim Tribunal, Srirangapatna, in Motor Vehicle Cases No.1055/2007.

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In this appeal, the appellant – Insurer has questioned the correctness of the judgment and award with regard to the quantum of compensation. According to the appellant, the Tribunal has committed error in deducting only 1/4^th of the monthly income of the deceased towards his personal expenses, though the only dependent on his income

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was his wife as his three sons were all majors. The other grievance made out by the insurer is with regard to the multiplier adopted. According to the appellant, regard being had to the age of the deceased, the appropriate multiplier is 9 and not 10, as adopted by the Tribunal.

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I have heard the learned counsel appearing for the appellant as well as the respondents – claimants.

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The claimants are not dissatisfied with the quantum of compensation. The Tribunal after assessing the monthly income of the deceased at Rs.4,000/-, for the purpose of quantification of the loss of dependency has deducted 1/4^th of the income of the deceased towards the personal expenses and has taken 3/4^th of the income of the deceased as loss of dependency. The Tribunal has adopted multiplier of 10. As could be seen from the description of the parties in the cause title of the petition, the deceased has left behind wife and three sons and all three sons of the deceased are majors. The elder son is aged about 34 years, second son is 30 years and the third

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son is 28 years, as on the date of the petition. Thus, the three sons of the deceased were not dependants on the deceased. Therefore, the only dependant on the income of the deceased was his wife. Therefore, the deduction of 1/4^th towards the personal expenses of the deceased is not proper. The deduction ought to have been 1/3^rd of the monthly income. There is no dispute that the deceased was aged about 60 years. Therefore, the appropriate multiplier is 9 and not 10 as adopted by the Tribunal. Thus, the total amount payable towards loss of dependency would be (Rs.32,000/- X 9) Rs.2,88,000/- as against Rs.3,60,000/- awarded by the Tribunal. The award of compensation under the conventional heads is just and proper and it does not call for interference by this Court. Thus, the claimant is entitled for total compensation of Rs.3,33,000/- as against Rs.4,05,000/- awarded by the Tribunal. To this extent, the appeal deserves to be allowed.

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Accordingly, the appeal is allowed. In modification of the award of the Tribunal, the total

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compensation payable to the claimants is quantified at Rs.3,33,000/- as against Rs.4,05,000/- awarded by the Tribunal.

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The compensation amount if already not deposited,

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shall be deposited with interest as ordered by the Tribunal within six weeks from today. The disbursement of the amount amongst the claimants shall be as indicated in the award.

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The amount in deposit if any, before this Court is ordered to be transferred to the Tribunal concerned.

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SD/JUDGE

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Rsh

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National Insurance Co. Ltd. v. Smt.Savithramma

Case brief

What is this about?

What did the court decide?

National Insurance Co. Ltd. v. Smt.Savithramma

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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