The New India Assurance Company Limited Vs Shri Jerala Correa

THE NEW INDIA ASSURANCE COMPANY LIMITED LOCAL OFFICE, 4TH FLOOR, FORTUNE BUILDING, OPP:ATHENA HOSPITAL, FALNIR, MANGALORE-575001. REPRESENTED BY THE MANAGER, THE NEW INDIA ASSURANCE COMPANY LIMITED, TP CLAIMS HUB, 2ND FLOOR, MAHALAKSHMI CHAMBERS, NO.9/2, M.G.ROAD, BANGALORE-560001.

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…APPELLANT

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(BY SRI. ASHOK N PATIL, ADVOCATE)

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AND:

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Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA

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SHRI JERALA CORREA SON OF LATE SHRI BAPTIST CORREA, AGED ABOUT 46 YEARS,

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SMT LYNET LOBO WIFE OF SHRI JERALA CORREA, AGED ABOUT 40 YEARS,

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BOTH ARE RESIDING AT AMAR JYOTHI HOUSE, MALADI VILLAGE, MADANTHYARU POST, BELTHANGADY TALUK, MANGALORE-574233. PRESENTLY RESIDING IN D'SOUZA COMPOUND,

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NC: 2026:KHC:1391 MFA No. 2787 of 2017

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HC-KAR

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LOWER BENDOORWELL, MANGALORE-575002.

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SHRI KUNJUMON SON OF SHRI P.S.MARKOSE, AGED ABOUT 53 YEARS, RESIDING AT PUTHUVEEDU HOUSE, MUNDAJE POST AND VILLAGE, BELTHANGADY TALUK, MANGALORE-574228.

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…RESPONDENTS

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(BY SRI. GURUPRASAD B R.,ADVOCATE FOR R1 & R2 V/O DTD 7.7.2025 NOTICE TO R3 IS DISPENSED WITH)

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THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 24.10.2016 PASSED IN MVC NO.724/2015 ON THE FILE OF THE III ADDITIONAL SENIOR CIVIL JUDGE, MACT, MANGALURU, D.K., AWARDING COMPENSATION OF Rs.17,08,583/- WITH INTEREST @ 6% P.A. FROM THE DATE OF PETITION TILL REALIZATION.

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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 C.M. POONACHA

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ORAL JUDGMENT

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The present appeal is filed by the insurer calling in question the judgment and award dated 24.10.2016 passed by the III Additional Senior Civil Judge, MACT, Mangaluru, D.K,¹ in MVC No.724/2015, whereunder the Tribunal has partly allowed the claim petition and awarded a total compensation of `17,08,583/- together with interest at 6% pa.

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1 hereinafter referred to as 'Tribunal'

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NC: 2026:KHC:1391 MFA No. 2787 of 2017

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HC-KAR

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The findings of the Tribunal on the negligence and

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liability are not under challenge. The only question that arises for consideration in the present appeal is the adequacy of the quantum of compensation.

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Heard the learned counsel Sri Ashok N.Patil for the appellant/insurer and Sri Guruprasad B.R, for respondent Nos.1 and 2/claimants.

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It is contended on behalf of the appellant that the Tribunal has awarded an exorbitant sum of 9,83,583/- towards future prospects. It is submitted that there is a typographical error while noticing medical expenses of 83,583/-. It is further submitted that even while calculating the total compensation, the Tribunal has committed an error.

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Learned counsel for the claimants submits that having regard to the judgment of the Supreme Court in the case of Kajal v. Jagdish Chand² , B aby Sakshi Greola V. Manzoor Ahmad Simon & Anr .,³ , and Karuna Parmar vs. Prakash Sinha⁴ , the notional income of the deceased minor is in the present case is required to be re-assessed adequately.

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2 (2020) 4 SCC 413

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3 2024 SCC Online 3692

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4 LAWS (SC)-2025-2-171

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HC-KAR

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The deceased was aged 13 years as on the date of

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the accident i.e., as on 2.3.2015. Having regard to the judgment of the Supreme Court in the case of Karuna Parmar⁴ as well as the judgment of the Coordinate Bench of this Court in the case of Master Niranjan v. Sri Veeresh & Anr.,⁵ , it is just and proper that the notional income of the deceased be reassessed as 6,000/- pm. To the said amount, 40% future prospects is required to be added in terms of the judgment of the Supreme Court in the case of **_National Insurance Company Ltd v. Pranay Sethi Sethi_**<sup>**_6_**</sup> **_,_** and 50% is required to be deducted towards personal expenses. The appropriate multiplier to be applied is 18. Accordingly, the claimants are entitled to (6,000/- x40% - 50%x12x18) `9,07,200/- towards loss of dependency.

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The claimants being the parents are entitled to loss of consortium at 40,000/- each together with 20% escalation in terms of the judgment of **_Magma General Insurance Co., Ltd., v. Nanu Ram_**<sup>**_7_**</sup> . Accordingly, the claimants are entitled to (48,000/-x2) `96,000/- towards the same.

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5 MFA No.9411/2017, decided on 25.07.2025

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6 AIR 2017 SC 5157

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7 (2018) 18 SCC 130

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HC-KAR

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The claimants are also entitled to compensation towards loss of estate and funeral expenses at 15,000/- each together with 20% escalation. Hence, a sum of 18,000/- each is awarded towards the same.

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It is forthcoming that the claimants have produced medical bills of 83,583/- as has been noticed by the Tribunal. Hence, it is just and proper to award a sum of 85,000/towards medical expenses.

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Accordingly, the total compensation under various

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heads is re-assessed as follows:

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Sl.No.	Heads	Amount awarded by this Court (Rs.)
1.	Loss of dependency	907200.00
2.	Loss of consortium	96000.00
3	Funeral expenses	18000.00
4.	Loss of estate	18000.00
5.	Medical expenses	85000.00
	Total	1124200.00 Rounded off to 1125000.00

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HC-KAR

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Hence, the claimants are entitled to a total

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compensation of 11,25,000/- as against 17,03,583/- awarded by the Tribunal.

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The rate of interest awarded by the Tribunal at 6%

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p.a., is just and proper.

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In view of the aforementioned, the following:

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ORDER

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i) The above appeal is allowed in part;

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ii) The judgment and award dated 24.10.2016 passed by the III Additional Senior Civil Judge, MACT, Mangaluru, D.K, in MVC No.724/2015, is modified holding that the appellant - insurer is liable to pay the compensation of `11,25,000/- together with interest at 6% pa., from the date of petition till date of realization;

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iii) The appellant – insurer shall deposit the balance compensation together with accrued interest within a period of four weeks from the date of receipt of a copy of this judgment;

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iv) The compensation awarded shall be apportioned in favour of claimant No.1(father) and claimant No.2(mother) in the ratio of 30:70 respectively;

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HC-KAR

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v) Out of the compensation awarded to each of the claimants, 50% of the compensation together with accrued interest shall be kept in a Fixed Deposit in any nationalized bank of the choice of the claimants for a period of three years, upon expiry of which, the compensation amount together with accrued interest shall be released directly to the claimants without any further orders from this Court or the Tribunal in that regard;

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