Tata Aig General Insurance Co. Ltd. Vs Bhateri and Ors. — Punjab & Haryana HC (2025) — LawSathi Research

Tata Aig General Insurance Co. Ltd. Vs Bhateri and Ors. — Punjab & Haryana HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Appeal disposed of by modifying the impugned award: monthly income of the deceased fixed at Rs.7,000/- per month with 40% future prospects and 1/2 deduction, multiplier of 18 affirmed per Sarla Verma, loss of consortium Rs.48,000/- each (Rs.96,000/- total), funeral expenses Rs.18,000/-, loss of estate Rs.18,000/-, interest @ 7.5% per annum on the enhanced amount from the date of filing of the claim petition till actual realization, with set-off of amounts already paid.

Issue for consideration

Whether the Tribunal correctly assessed the monthly wages of the deceased, who was working as Mason, at Rs.9,880/- per month, when the State of Haryana notification for the period relevant to the date of accident (14.10.2015) indicated minimum wages of Rs.6,276.76/- per month for Mason. +1 more

Court's answer

The monthly income of the deceased is taken to be Rs.7,000/- per month.

Ratio / Principle

40% future prospects are added to the monthly income and a deduction of 1/2 is applied, keeping in view that the deceased was 21 years of age at the time of the accident and was a bachelor.

Key takeaways

Multiplier of 18 has been rightly applied, in view of the ratio of law laid down by the Supreme Court in Smt. Sarla Verma and others vs. Delhi Transport Corporation and another, (2009)6 SCC 121.ratio¶22
Both the claimants are entitled to loss of consortium @ Rs.48,000/- each, i.e. Rs.96,000/- in total.ratio¶22
Rs.18,000/- is awarded for funeral expenses and Rs.18,000/- is awarded for loss of estate.ratio

Detailed headnote1 paragraphs

FAO No.7568 of 2017 (O&M) (Punjab & Haryana HC, decided 14.05.2025) - Insurer's appeal against the Tribunal's assessment of the monthly wages of a deceased Mason at Rs.9,880/- per month. Counsel pointed out that the State of Haryana notification for the period relevant to the accident of 14.10.2015 listed minimum wages for Mason at Rs.6,276.76/- per month. Taking the middle course, Pankaj Jain, J. fixed the monthly income at Rs.7,000/-, added 40% future prospects, applied a deduction of 1/2 (deceased aged 21, bachelor), and affirmed the multiplier of 18 in view of the ratio in Smt. Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121. Loss of consortium was awarded at Rs.48,000/- each (Rs.96,000/- total), funeral expenses at Rs.18,000/-, loss of estate at Rs.18,000/-, with interest @ 7.5% per annum on the enhanced amount from the date of filing of the claim petition till realization, subject to set-off of amounts already paid. Appeal disposed of.

FAO No.7568 of 2017 (O&M)

-1-

224

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

FAO No.7568 of 2017 (O&M) Date of decision : 14.05.2025

Tata AIG General Insurance Co. Ltd.

....Appellant

Versus

Smt. Bhateri and others

...Respondents

CORAM: HON'BLE MR. JUSTICE PANKAJ JAIN

Present : Ms. Manvi Verma, Advocate and Mr. Rajneesh Malhotra, Advocate for the appellant.

Mr. S.K. Yadav, Advocate for respondents No.1 & 2.

Mr. J.P. Sharma, Advocate for respondents No.3 & 5.

PANKAJ JAIN, J. (ORAL)

Insurance Company is in appeal.

Primary grievance raised by the appellant is w.r.t. to assessment of monthly wages of the deceased, who was working as Mason.

Counsel for the appellant submits that in the absence of there being any evidence regarding monthly income of the deceased, the Tribunal relied upon the minimum wages notified by State. However, the same have been wrongly taken to be Rs.9,880/- per month whereas, as per the notification issued by State of Haryana for the relevant period i.e. the date of accident (14.10.2015), the minimum wages notified for Mason is Rs.6,276.76/- per month.

Deepak Kumar 2025.05.27 18:22 I attest to the accuracy and integrity of this document

FAO No.7568 of 2017 (O&M)

-2-

In view of above, the monthly income of the deceased is taken to be Rs.7,000/- per month. 40% future prospects need to be added. Deduction of 1/2 needs to be applied keeping in view that the deceased was 21 years of age at the time of accident and was a bachelor. In view of ratio of law laid down by Supreme Court in Smt. Sarla Verma and others vs. Delhi Transport Corporation and another, (2009)6 SCC 121 , multiplier of 18 has been rightly applied. Both the claimants are further entitled for loss of consortium @ Rs.48000/- each i.e. Rs.96,000/-. Rs.18000/- are awarded for funeral expenses. Rs.18,000/- are awarded for loss of estate. The claimants shall be entitled for interest @ 7.5% per annum on the enhanced amount, from the date of filing of the claim petition till the actual date of realization.

Needless to say, amount already paid to the claimants shall be set off. 6. With the aforesaid modification in the impugned award, instant appeal is disposed off.

Pending application, if any, shall also stand disposed off.

May	14	, 2025	(P	ankaj Jain)
Dpr				Judge
		Whether speaking/reasoned	: Yes/No
		Whether reportable	: Yes/No

Deepak Kumar 2025.05.27 18:22 I attest to the accuracy and integrity of this document