Partly allowed

Shabana v. M/S Reliance General Insurance Co. Ltd.

Karnataka HC2 Dec 2024MFA/1475/2020

Case brief

AI extract

What is this about?

Two enhancement appeals under the Motor Vehicles Act for a fatal accident and injury claims. The court applied KSLSA notional income of Rs.12,500/-, Pranay Sethi's 25% future prospects, and Sarla Verma multipliers, raising the death compensation to Rs.21,60,452/- and the injured claimant's award to Rs.9,24,153/-. Both appeals allowed in part.

What did the court decide?

Enhanced compensation of Rs.21,60,452/- (death) and Rs.9,24,153/- (injury), with 6% interest; deposit within eight weeks/two months; apportionment as per Tribunal; 70% FD for ten years for the injured

Shabana Vs M/S Reliance General Insurance Co. Ltd. — Motor Accident Claims | Karnataka HC (2024)

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NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 2^ND DAY OF DECEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE N S SANJAY GOWDA

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MISCELLANEOUS FIRST APPEAL NO. 1475 OF 2020

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C/W

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MISCELLANEOUS FIRST APPEAL NO. 1430 OF 2020

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(MV-D)

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IN MFA No. 1475/2020:

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BETWEEN:

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SHABANA

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W/O LATE RIYAZ @ BABU @ RIYAZ BABU, AGED ABOUT 41 YEARS R/AT WARD NO.18, BYDARAPETE, ANEKAL TOWN, BANGALORE DISTRICT-562106.

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…APPELLANT

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(BY SRI. P SURESH., ADVOCATE)

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Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA

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AND:

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M/S RELIANCE GENERAL INSURANCE CO. LTD., BANGALORE BRANCH, RGTC-28, EAST WING, 5^TH FLOOR, CENTENARY BUILDING, M.G.ROAD, BANGALORE-560001 REPT. BY ITS INCHARGE MANAGER.

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MAHINDIRAN.R., S/O RAMALINGAM MAJOR IN AGE, R/AT NO-61, MARIAMMAN KOIL STREET, CHINA PILLAIYAR MEDU,

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2 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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CHUDDALORE HO-SIPCOT, TAMILNADU-607001. (OWNER OF THE LORRY)

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…RESPONDENTS

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(BY SRI. LAKSHMINARAYAN C., ADVOCATE FOR R-1; VIDE ORDER DATED:19.07.2023, NOTICE TO R-2 IS DISPENSED WITH)

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THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT, AGAINST THE JUDGMENT AND AWARD DATED:30.08.2019 PASSED IN MVC NO.1260/2018 ON THE FILE OF THE XIX ADDITIONAL JUDGE AND MEMBER, MACT, COURT OF SMALL CAUSES, BENGALURU (SCCH-17), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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IN MFA NO. 1430/2020:

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BETWEEN:

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SHABANA

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W/O LATE RIYAZ @ BABU @ RIYAZ BABU, AGED ABOUT 43 YEARS,

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HENA KOUSER

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D/O LATE RIYAZ @ BABU @ RIYAZ BABU, AGED ABOUT 21 YEARS,

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KUBRA

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D/O LATE RIYAZ @ BABU @ RIYAZ BABU, AGED ABOUT 17 YEARS,

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SUFIYA

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D/O LATE RIYAZ @ BABU @ RIYAZ BABU, AGED ABOUT 13 YEARS,

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ALIYA

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D/O LATE RIYAZ @ BABU @ RIYAZ BABU, AGED ABOUT 10 YEARS

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SUMEERA

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D/O LATE RIYAZ @ BABU @ RIYAZ BABU,

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3 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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AGED ABOUT 7 YEARS

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PETITIONER 3 TO 6 ARE MINORS REPT. BY THEIR MOTHER & NATURAL GUARDIAN I.E., APPELLANT NO.1

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AL ARE R/AT WARD NO.18, BYDARAPETE, ANEKAL TOWN, BANGALIRE DISTRICT-562106.

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...APPELLANTS

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(BY SRI. P SURESH., ADVOCATE)

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AND:

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M/S RELIANCE GENERAL INSURANCE CO. LTD., BANGALORE BRANCH, RGTC-28, EAST WING, 5^TH FLOOR, CENTENARY BUILDING, M.G.ROAD, BANGALORE-560001. REPT. BY ITS INCHARGE MANAGER.

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MAHINDIRAN.R. S/O RAMALINGAM MAJOR IN AGE, R/AT NO-61, MARIAMMAN KOIL STREET, CHINA PILLAIYAR MEDU, CHUDDALORE HO-SIPCOT, TAMILNADU-607001. (OWNER OF THE LORRY)

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...RESPONDENTS

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(BY SRI. LAKSHMINARAYAN C., ADVOCATE FOR R-1; VIDE ORDER DATED 19.07.2023, NOTICE TO R-2 IS DISPENSED WITH)

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THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 30.08.2019 PASSED IN MVC NO. 1259/2018 ON THE FILE OF THE XIX ADDITIONAL JUDGE AND MEMBER, MACT, COURT OF SMALL CAUSES, BENGALURU (SCCH-17), PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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4 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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THESE APPEALS, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE N S SANJAY GOWDA

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ORAL JUDGMENT

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The claimants, being dissatisfied with the compensation of Rs.15,18,713/- awarded by the Tribunal for the death of one Riyaz, have filed MFA No.1430 of 2020 seeking enhancement and also the injured claimant—Shabana being aggrieved by the compensation of Rs.2,63,653/- awarded by the Tribunal has filed MFA No.1475 of 2020 seeking enhancement.

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IN MFA No.1430/2020 : (MVC No.1259/2018)

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(For the death of Riyaz) :

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It is not in dispute that as a result of the motor vehicle accident which occurred on 09.01.2018, Riyaz, a 48 year old died. It is also not in dispute that the Insurer is liable to pay the compensation as the offending vehicle was insured.

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The Tribunal, on assessment of the evidence adduced before it, has come to the conclusion that the driver of the offending lorry was responsible for the accident which has resulted in the death of Riyaz. The Tribunal has thereafter proceeded to award the

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following sums as compensation:

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Sl. No.	Nature of Heads	Awarded by this Court (In Rs.)
1.	Loss of Dependency	12,43,125/-
2.	Loss of Consortium	2,40,000/-
3.	Loss of estate	15,000/-
4.	Transportation of dead body, funeral and obsequies ceremony expenses	15,000/-
5.	Medical expenses	5,588/-
	Total :	15,18,713/-

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In order to arrive at the loss of dependency, the Tribunal has determined the monthly income of the deceased notionally at Rs.8,500/- as there was no proof of his actual income.

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In cases where there is no evidence to determine the actual income, it is appropriate to adopt the notional income as assessed by the Karnataka State Legal

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6 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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Services Authority which, for the accidents of the year 2018, would be Rs.12,500/- .

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As per the decision of the Apex Court in the case of Pranay Sethi¹ , as the deceased was aged 48 years , 25 % of the same (Rs.3,125/-) is required to be added to the said income as ‘future prospects’ and the resultant income would be Rs.15,625/-.

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Since the deceased was survived by his wife and five children, out of the said sum, 1/4^th of the same (Rs.3,906/) would have to be deducted towards personal and living expenses of the deceased. The net income will be Rs.11,719/- .

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As the deceased was aged 48 years, as per the decision rendered by the Hon’ble Supreme Court in the case of Sarla Verma² , a multiplier of '13’ would have to be applied.

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1 National Insurance Company Limited vs. Pranay Sethi and Others - (2017) 16 SCC 680

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2 Sarla Verma and others vs. Delhi Transport Corporation and another, (2009) 6 SCC 121

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7 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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Consequently, the claimants would be entitled to a

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sum of Rs.18,28,164/- (Rs.11,719/- x 12 x '13')

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towards “ loss of dependency ” .

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The claimants being the wife and five children, as per Pranay Sethi³ , they would each be entitled to a sum of Rs.48,400/- towards “ loss of consortium ” i.e., in all Rs.2,90,400/- and they would also be entitled to a sum of Rs.36,300/- under the “ conventional heads ” .

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Further, the claimants would also be entitled to a sum of Rs.5,588/- that had been awarded by the Tribunal towards medical expenses , based on the documentary evidence.

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Thus, the claimants, in modification of the impugned award, would be entitled to the following sums :

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Sl. No.	Nature of Heads	Awarded by this Court (In Rs.)
1.	Loss of Dependency	18,28,164/- (Rs.11,719/- x 12 x '13')

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3 National Insurance Company Limited vs. Pranay Sethi and Others - (2017) 16 SCC 680

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NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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Sl. No.	Nature of Heads	Awarded by this Court (In Rs.)
2.	Loss of Consortium	2,90,400/-
3.	Conventional Heads	36,300/-
4.	Medical expenses	5,588/-
	Total :	21,60,452/-

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Thus, the claimants would be entitled for compensation of Rs.21,60,452/- as against Rs.15,18,713/- awarded by the Tribunal, along with interest at the rate of six per cent per annum (as against 8%) from the date of petition till its realization.

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The Insurance Company is directed to deposit the amount of compensation awarded along with interest within a period of eight weeks from the date of receipt of a certified copy of this judgment.

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The apportionment, deposit and release of the enhanced compensation amount shall be made as per the ratio adopted by the Tribunal.

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The appeal is accordingly allowed in part .

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In MFA No.1475 of 2020 (MVC No.1260/2018):

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(For the injuries to Shabana) :

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The Tribunal on assessment of the evidence has

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awarded the following sums as compensation for the injuries suffered by the claimant:

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Sl. No.	Nature of Heads	Compensation awarded by the Tribunal (In Rs.)
1.	Loss of future income	NIL
2.	Pain and sufferings	40,000/-
3.	Loss of amenities in life	20,000/-
4.	Medical expenses	56,653/-
5.	Disfiguration	1,00,000/-
6.	Conveyance, food, nourishment, attendant charges	30,000/-
7.	Loss of income during the laid up period and rest period	17,000/-
	Total	2,63,653/-

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The Tribunal has recorded a finding that the claimant did suffer disfiguration of right fore-arm and has assessed the whole body disability at 10% on the basis of evidence of the doctor.

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It has, however, not awarded any sums towards loss of future income, and awarded a sum of Rs.1,00,000/- towards disfiguration .

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10 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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The learned counsel for the claimant has produced photographs which indicate that the claimant has suffered severe disfigurement to the right fore-arm. It is also stated that the claimant has suffered a similar disfigurement to her right thigh.

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In my view, having regard to the disfigurement which is apparent from the photographs, the whole body disability would have to be taken as 20% as against 10% determined by the Tribunal on the basis of the doctor's evidence.

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Since there is no credible documentary evidence to ascertain the actual monthly income of the claimant, it would be appropriate and prudent to adopt the monthly income determined by the Karnataka State Legal Services Authority which, for the accident of the year 2018 , would be Rs.12,500/-.

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As the injured claimant was aged 41 years as on the date of the accident and she has suffered 20%

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11 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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whole body disability, as per the decision rendered by the Hon’ble Supreme Court in the case of Pranay Sethi⁴ , future prospects of 25% would have to be added (Rs.3,125/-) . The net income would be Rs.15,625/-.

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Further, as per the decision of the Hon’ble Apex Court in the case of Sarla Verma⁵ , having regard to the fact that the claimant was aged 41 years as on the date of the accident, a multiplier of ' 14 ’ would have to be applied.

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Consequently, the claimant would be entitled to a

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sum of Rs.5,25,000/- (Rs.15,625/- x 12 x ‘14’ x 20%)

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towards 'loss of future income' .

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Having regard to the injuries suffered by the claimant, the sum of Rs.40,000/- awarded towards pain and suffering is enhanced to Rs.75,000/- .

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4 National Insurance Company Limited vs. Pranay Sethi and Others - (2017) 16 SCC 680

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5 Sarla Verma and others vs. Delhi Transport Corporation and another, (2009) 6 SCC 121

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Having regard to the lasting effects of the injuries on the claimant, she would be entitled to a sum of Rs.75,000/- towards loss of amenities , as against the sum of Rs.20,000/- awarded by the Tribunal.

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Having regard to the severe disfigurement to the right forearm and right thigh of the claimant, Rs.1,00,000/- awarded by the Tribunal towards disfiguration is maintained.

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Similarly, the sum of Rs.56,653/- awarded towards medical expenses, being based on documentary evidence, and the sum of Rs.30,000/- awarded towards conveyance, food, nourishment and attendant charges by the Tribunal, being just and proper, they are also maintained.

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The Tribunal has taken the laid up period as two months. Having regard to the length of stay of the claimant in the hospital, it would be appropriate to treat the laid up period as five months and as a consequence of re-assessing the monthly income of

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13 - NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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the claimant at Rs.12,500/-, the claimant would also be entitled to a sum of Rs.62,500/- (Rs.12,500/-. X 5

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months) towards ' loss of income during the laid up

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period '

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Consequently, the award of the Tribunal is modified and the claimant would be held entitled to the

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following compensation:

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Sl. No.	Nature of Heads	As awarded by the Tribunal (In Rs.)	As awarded by this Court (In Rs.)
1.	Loss of future income	NIL	5,25,000/- (Rs.15,625/- x 12 x ‘14’ x 20%)
2.	Pain and sufferings	40,000/-	75,000/-
3.	Loss of amenities in life	20,000/-	75,000/-
4.	Medical expenses	56,653/-	56,653/-
5.	Disfiguration	1,00,000/-	1,00,000/-
6.	Conveyance, food, nourishment, attendant charges	30,000/-	30,000/-
7.	Loss of income during the laid up period and rest period	17,000/-	62,500/-
	Total	2,63,653/-	9,24,153/-

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Thus, the claimant is held entitled to the total compensation of Rs.9,24,153/- as against Rs.2,63,653/-, along with interest at the rate of six per cent per annum (as against 8%) from the date of petition till its realization.

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The Insurance Company is directed to deposit the amount of compensation awarded with interest within two months from the date of receipt of a certified copy of this judgment.

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On such deposit, out of the compensation and interest, 70% of the same shall be invested in a fixed deposit in the name of the claimant in any nationalized bank or post office for a period of ten years. The claimant shall be at liberty to withdraw the periodical interest accrued thereon.

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Balance 30% of the compensation shall be paid to the claimant on proper identification.

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NC: 2024:KHC:49431 MFA No. 1475 of 2020 C/W MFA No. 1430 of 2020

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15 -

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36. The appeal is accordingly allowed in part .

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Sd/(N S SANJAY GOWDA) JUDGE

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RK List No.: 1 Sl No.: 36

Shabana v. M/S Reliance General Insurance Co. Ltd.

Case brief

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Shabana v. M/S Reliance General Insurance Co. Ltd.

Case brief

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