Smt. Vanajakshi Vs Iffco-Tokio General Insurance Co.Ltd

THIS MFA IS FILED UNDER SECTION 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED.13.03.2018 PASSED IN MVC NO.668/2015 ON THE FILE OF THE III ADDITIONAL DISTRICT JUDGE AND IV MACT, TUMAKURU, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

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

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CORAM: HON'BLE MR. JUSTICE D K SINGH and

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HON'BLE MR. JUSTICE B M SHYAM PRASAD

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HC-KAR

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ORAL JUDGMENT

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(PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD)

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This appeal is by the claimants in MVC No. 668/2015 on the file of III Addl. District Judge and IV MACT, Tumkur [for short ‘the Tribunal’ ]. The Tribunal, by the impugned judgment and the award dated 13.03.2018, has granted to the claimants a sum of Rs.9,99,500/- with interest at 6% from the date of petition to the date of deposit under the

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following heads.

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Sl. No.	Description	Amount
1.	Towards loss of financial dependency	Rs.8,77,500.00
2.	Towards loss of love and affection	Rs.40,000.00
3.	Towards loss of consortium	Rs.40,000.00
4.	Towards transportation charges	Rs.12,000.00
5.	Towards funeral expenses	Rs.30,000.00
	*Total*	*Rs.9,99,500.00*

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The Tribunal has called upon the first respondent–an

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Insurer - to pay this compensation.

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Sri Ramachandraiah has died in a road

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accident on 07.06.2015 involving a car that was

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HC-KAR

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insured with the first respondent. Sri. S. Nagesh, the learned counsel for the claimants, who are the wife, the mother and minor children of Sri

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Ramachandraiah, submits that the deceased was engaged in the catering business but the Tribunal has taken the income of the deceased at Rs.7,500/considering the deceased an unskilled labour without addition towards future prospects. The learned counsel also submits that the Tribunal has not granted to each of the claimants the loss of consortium at Rs.40,000/-.

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Sri. S. Nagesh, emphasizes that the

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claimants have produced Sri Ramachandraiah’s driving license to establish his age, and it is shown that he was born on 01.07.1971 [ i.e., 44 years as of the date of his death ], and that despite this evidence, the Tribunal has taken the age of the deceased as 47 and applied the multiplier of ‘ 13 ’ as against ‘ 14 ’.

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HC-KAR

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4. Sri E.I. Sanmathi, the learned counsel for

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Insurer is heard. The learned counsel submits that

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this Court may not grant any enhancement towards loss of dependency based on the claimants’ case that Sri Ramachandraiah was in the catering business because there is no proof thereof and that the compensation must be based on just the notional income with addition towards future prospects in terms of the Apex Court's decision in National Insurance Co.Ltd. -vs- Pranay Sethi and Others¹ .

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5. Sri E.I. Sanmathi also submits that any

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enhancement in compensation towards loss of consortium must be considered in the light of the fact that the Tribunal, apart from a sum of Rs.40,000/towards loss of consortium, has granted Rs.52,000/towards loss of love and affection and transportation charges when the compensation under this head would only be in a sum of Rs.30,000/-.

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1 (2017) 16 SCC 680

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HC-KAR

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The question for consideration is: whether

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there must be an enhancement in compensation towards loss of the dependency with modulation in compensation granted towards loss of consortium and funeral and transportation expenses . The claimants, except asserting that the deceased was working as a cook and managing a catering business, have not placed on record any proof of his vocation, and in that view the loss of dependency must be computed based on notional income. The notional income, according to the chart schedule evolved for settlement of claims arising from accidents in the year 2015, is Rs.9,000/-. This income must be accepted for the computation of loss of dependency.

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Therefore, the loss of dependency must be computed based on this income with the addition of 25% thereof towards future prospects as this would be the correct addition irrespective of the deceased being 44 or 47 years old as of the date of the

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HC-KAR

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accident. The claimants have produced the Ramachandraiah's driving license [Ex. P11]. The Tribunal, ignoring this evidence, has accepted his age as mentioned in Aadhaar card. It has also held that Aadhaar card cannot be proof of age. The loss of dependency must be computed deducting 1/4^th towards personal expenditure and applying the multiplier '14' based on these parameters and the

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computation will be:

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Details for Computa	tion of Loss	of Dependency
MonthlyIncome		Rs. 9,000/-
Addition towards Future Prospects	25%	Rs. 2,250/-
Monthly Income + Future Prospects		Rs. 11,250/-
Annual Income		Rs.1,35,000/-
Deduction Towards personalexpenses	¼	Rs. 33,750/-
Multiplicand [After
Deduction towards personal Expenses]		Rs. 1,01,250/-
Multiplier	14
Loss of Dependency		Rs.14,17,500/-

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It is further settled that each dependent would be entitled to loss of consortium at Rs.40,000/- and apart from this amount there must

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HC-KAR

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be a conventional sum of Rs.30,000/- both towards funeral and transport charges. The claimants are four [4] in number, and they will be entitled for a sum of Rs.1,60,000/-, and they will also be entitled to another sum of Rs.30,000/-. The enhancement in compensation will be in a sum of Rs.6,08,000/which is brought over by a comparative table of the amount as decided by the Tribunal and as decided by

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this Court.

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	By the Tribunal [in Rs.]	By this Court [in Rs.]
Towards loss of dependency	Rs.8,77,500.00	*Rs.14,17,500/-*
Towards loss of love _and affection _	Rs.40,000.00	*R160000/*
Towards loss of _consortium _	Rs.40,000.00	*s.,,-*
Towards transportation charges	Rs.12,000.00	Rs.30,000/-
Towards funeral expenses	Rs.30,000.00
*Total*	*Rs.9,99,500/-*	*Rs.16,07,500/-*
Enhancement	*Rs.6,08*	_,000/- _

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HC-KAR

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9. In the result, the following:

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ORDER

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[A] The appeal is allowed-in-part, and the Tribunal's judgment and award dated 13.03.2018 in MVC No.668/2015 is modified granting enhanced compensation of Rs.6,08,000/-with interest at 6% per annum from the date of petition till the date of deposit.

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[B] The Respondent–Insurer is called upon to compute the interest and deposit the amount with the Tribunal within eight [8] weeks from the date of receipt of a certificate copy of this order.

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