Partly allowed

Smt R Ambika v. the Icici Lombard General Insurance Co. Ltd.

Karnataka HC6 Dec 2023MFA/2621/2023

Case brief

AI extract

What is this about?

In this motor accident first appeal arising from a road traffic accident resulting in the death of the deceased, the High Court enhanced the compensation awarded by the Claims Tribunal from Rs.24,70,000 to Rs.29,20,000. The court revised the income assessment, applied future prospects, and awarded additional amounts for consortium under various relationships.

What did the court decide?

The judgment of the Claims Tribunal was modified, and the claimants were awarded a total compensation of Rs.29,20,00/-, which the Insurance Company is directed to deposit with interest.

Smt R Ambika Vs the Icici Lombard General Insurance… — Motor Accident Claims | Karnataka HC (2023)

¶1

1 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶2

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶3

DATED THIS THE 6^TH DAY OF DECEMBER, 2023

¶4

BEFORE

¶5

THE HON'BLE MR JUSTICE H.T. NARENDRA PRASAD MISCELLANEOUS FIRST APPEAL NO. 2621 OF 2023 (MV)

¶6

BETWEEN:

¶7

SMT R AMBIKA W/O RAJU S @ RAJAPPA AGED ABOUT 41 YEARS

¶8

KUM. R. AISHWARIYA D/O RAJU S @ RAJAPPA AGED ABOUT 22 YEARS

¶9

KUM. R ANANYA D/O RAJU S @ RAJAPPA AGED ABOUT 17 YEARS

¶10

KUM. R SINCHANA D/O RAJU S @ RAJAPPA AGED ABOUT 13 YEARS

¶11

Digitally signed by DHANALAKSHMI MURTHY Location: High Court of Karnataka

¶12

KUM R TANUSHREE D/O RAJU S @ RAJAPPA AGED ABOUT 09 YEARS

¶13

KUM ANVITHA R D/O RAJU S @ RAJAPPA AGED ABOUT 06 YEARS APPELLANT Nos. 3 TO 6 ARE MINORS REP BY NATURAL GUARDIAN MOTHER SMT R. AMBIKA

¶14

SMT RATHNAMMA W/O LATE SHIVAPPA AGED ABOUT 63 YEARS

¶15

2 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶16

ALL ARE R/A NEAR STADIUM AMBEDKAR BEEDI CHITRADURGA DISTRICT - 577501 NOW R/O 4TH CROSS PRASHANTH NAGARA JOGIMATTI ROAD CHITRADURGA – 577501.

¶17

…APPELLANTS

¶18

(BY SRI. V B SIDDARAMAIAH.,ADVOCATE)

¶19

AND:

¶20

THE ICICI LOMBARD GENERAL INSURANCE CO. LTD., REGIONAL OFFICE THE ESTATE, 9^TH FLOOR DICKENSON ROAD M.G.ROAD, BANGALORE-560042.

¶21

SRI NGARAJU S

¶22

S/O SHEKARAPPA AGED ABOUT 43 YEARS R/O T NULENUR VILLAGE THODARANAL, HOLALKERE TALUK CHITRADURGA DISTRICT - 577557

¶23

…RESPONDENTS

¶24

(BY SRI. B C SHIVANNE GOWDA.,ADVOCATE FOR R1: NOTICE TO R2 IS DIPSENSED WITH V/O DATED: 20.04.2023)

¶25

THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED: 30.07.2022 PASSED IN MVC NO. 631/2020 ON THE FILE OF THE PRL. SENIOR CIVIL JUDGE AND ADDITIONAL MACT-III, CHITRADURGA, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION.

¶26

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, THE COURT DELIVERED THE FOLLOWING:

¶27

3 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶28

JUDGMENT

¶29

This appeal under Section 173(1) of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘the Act’, for short) has been filed by the claimants being aggrieved by the judgment and award dated 30.7.2022 passed by the MACT, Chitradurga in MVC 631/2020.

¶30

Facts giving rise to the filing of the appeal briefly

¶31

stated are that on 8.1.2020 when the deceased Raju.S was proceeding on Chitradurga in car bearing registration No.KA-04-MG-4135 near T Nulenuru Gate on NH-13, at that time, a Bolero Vehicle bearing registration No.KA-16N-6255 which was being driven in a rash and negligent manner, dashed against the vehicle in which deceased the deceased was travelling. As a result of the aforesaid accident, the deceased sustained grievous injuries and succumbed to the injuries.

¶32

The claimants filed a petition under Section 166 of the Act seeking compensation for the death of the

¶33

4 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶34

deceased along with interest. On service of summons, the respondents appeared through counsel and filed written statements in which the averments made in the petition were denied.

¶35

On the basis of the pleadings of the parties, the Claims Tribunal framed the issues and thereafter recorded the evidence. The claimants, in order to prove their case, examined claimant No.1 as PW-1 and got exhibited documents namely Ex.P1 to Ex.P16. On behalf of respondents, neither any witness was examined nor any document was produced. The Claims Tribunal, by the impugned judgment, inter alia, held that the accident took place on account of rash and negligent driving of the offending vehicle by its driver, as a result of which, the deceased sustained injuries and succumbed to the injuries. The Tribunal further held that the claimants are entitled to a compensation of Rs.24,70,000/- along with interest at the rate of 6% p.a. and directed the Insurance Company

¶36

5 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶37

to deposit the compensation amount along with interest.

¶38

Being aggrieved, this appeal has been filed.

¶39

The learned counsel for the claimants has raised the following contentions:

¶40

a) Firstly, the claimants claim that the deceased was aged about 40 years at the time of the accident and he was earning Rs.50,000/- per month by working as building contractor. But the Tribunal is not justified in taking the monthly income of the deceased as merely as Rs.12,000/-.

¶41

b) Secondly, as per the law laid down by the Hon’ble Supreme Court in the case of NATIONAL INSURANCE CO. LTD. -v- PRANAY SETHI AND OTHERS [AIR 2017

¶42

SC 5157], in case the deceased was self-employed or on a fixed salary, an addition of 25% of the established income towards ‘future prospects’ should be the warrant where the deceased was between the age group of 40-50 years. The same has been rightly considered by the Tribunal.

¶43

6 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶44

c) Thirdly, as per the law laid down by the Hon’ble Supreme Court in the case of PRANAY SETHI (supra), the claimants are entitled for Rs.15,000/- towards ‘loss of estate’ and Rs.15,000/- towards ‘funeral expenses’. d) Fourthly, as per the judgment of the Hon’ble Supreme Court in the case of MAGMA GENERAL

¶45

INSURANCE CO. LTD. –V- NANU RAM [2018 ACJ 2782] , each of the claimants are entitled for compensation of Rs.40,000/- under the head of ‘loss of love and affection and consortium’.

¶46

e) Lastly, considering the age and avocation of the deceased, the overall compensation awarded by the Tribunal is on the lower side. Hence, he prays for allowing the appeal.

¶47

On the other hand, the learned counsel for the Insurance Company has raised the following countercontentions:

¶48

a) Firstly, even though the claimants claim that the deceased was earning Rs.50,000/- per month, the same is

¶49

7 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶50

not established by the claimants by producing documents.

¶51

Therefore, the Tribunal has rightly assessed the income of the deceased notionally.

¶52

b) Secondly, since the claimants have not established the income of the deceased, they are not entitled for compensation towards ‘future prospects’.

¶53

c) Thirdly, on appreciation of oral and documentary evidence and considering the age and avocation of the deceased, the overall compensation awarded by the Tribunal is just and reasonable. Hence, he prays for dismissal of the appeal.

¶54

Heard the learned counsel for the parties and

¶55

perused the judgment and award of the Tribunal.

¶56

It is not in dispute that Raju.S.@ Rajappa died in the

¶57

road traffic accident occurred on 8.1.2020 due to rash and negligent driving of the offending vehicle by its driver.

¶58

8 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶59

The claimants claim that deceased was earning

¶60

Rs.50,000/- per month. But they have not produced any documents to prove the income of the deceased. In the absence of proof of income, the notional income has to be assessed. As per the guidelines issued by the Karnataka State Legal Services Authority, for the accident taken place in the year 2020, the notional income of the deceased has to be taken at Rs.14,500/- p.m. To the aforesaid income, 25% has to be added on account of future prospects in view of the law laid down by the Constitution Bench of the Supreme Court in ‘PRANAY

¶61

SETHI’ (supra). Thus, the monthly income comes to Rs.18,125/-. Since there are 7 dependents, it is appropriate to deduct 1/5^th of the income of the deceased towards personal expenses and remaining amount has to be taken as his contribution to the family. The deceased was aged about 40 years at the time of the accident and multiplier applicable to his age group is ‘15’. Thus, the claimants are entitled to compensation of Rs.26,10,000/-

¶62

9 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶63

(Rs.18,1251215*4/5) on account of ‘loss of

¶64

dependency’.

¶65

In addition, the claimants are entitled to compensation of Rs.15,000/- on account of ‘loss of estate’ and compensation of Rs.15,000/- on account of ‘funeral expenses’. Claimant No.1, wife of the deceased is entitled for compensation of Rs.40,000/- under the head of 'loss of spousal consortium'.

¶66

In view of the law laid down by the Supreme Court in the case of ‘MAGMA GENERAL INSURANCE’ (supra), claimant Nos.2 to 6, children of the deceased are entitled for compensation of Rs.40,000/- each under the head of ‘loss of parental consortium’ and claimant No.7, mother of the deceased is entitled for compensation of Rs.40,000/under the head of ‘loss of filial consortium’.

¶67

Thus, the claimants are entitled to the following compensation:

¶68

10 - NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶69

Compensation under different Heads	Amount in (Rs.)
Loss of dependency	26,10,000
Funeral expenses	15,000
Loss of estate	15,000
Loss of spousal consortium	40,000
Loss of Parental consortium	2,00,000
Loss of Filial consortium	40,000
Total	29,20,000

¶70

In the result, the following order is passed:

¶71

ORDER

¶72

a) The appeal is allowed in part .

¶73

b) The judgment of the Claims Tribunal is modified. c) The claimants are entitled to a total compensation of

¶74

Rs.29,20,000/- as against Rs.24,70,000/- awarded by the Tribunal.

¶75

d) The ICICI Lombard General Insurance Company Limited is directed to deposit the compensation amount along with interest at 6% p.a. from the date of filing of the

¶76

NC: 2023:KHC:44087 MFA No. 2621 of 2023

¶77