Partly allowed

The National Insurance Co.Ltd.Hyd. v. K.Venkata Ram Reddy and 2 Ors.

Telangana HC5 Nov 2012MACMA/3501/2012

Case brief

AI extract

What is this about?

Appeal by insurer against compensation awarded to parents of deceased bachelor. Court held 1/2nd of deceased's income must be deducted for living expenses, following Sarala Varma, reducing claim from 3.93 lakhs to 3.05 lakhs.

What did the court decide?

Awarded compensation of Rs.3,05,800 with 9% interest; deposit ordered; payment scheme laid down.

The National Insurance Co.Ltd.Hyd. Vs K.Venkata Ram Reddy and 2 Ors. — Telangana HC (2012) — LawSathi Research

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HON’BLE SRI JUSTICE K.G.SHANKAR

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M.A.C.M.A.No.3501 of 2012

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JUDGMENT:

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The only question in this appeal is as to the amount deductable towards the personal and living expenses of the deceased, when the deceased was a bachelor at the time of his death. The claimants, who are the parents of the deceased-K.Venkat Reddy, sought compensation at Rs.4,00,000/- under Section 166 of the M.V.Act and the rules thereunder for the death of the deceased in a vehicular accident. The Motor Accidents Claims Tribunal-cum-I Additional District Judge, Nizamabad, (for short ‘the Tribunal’) determined compensation at Rs.3,93,000/- together with interest at 9% per annum. Assailing the same, the second respondent-insurer before the Tribunal preferred the present appeal.

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Sri R.K Suri, learned counsel for the insurer contended that the Tribunal deducted 1/3^rd of the income of the deceased towards personal and living expenses of the deceased whereas the Tribunal should have deducted half of the income of the deceased towards the personal and living expenses of the deceased, as the deceased was a bachelor. He did not dispute the rest of the calculations.

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The Tribunal determined the notional income of the deceased at Rs.4,300/- per month and at Rs.51,600/- per annum. The Tribunal however deducted 1/3^rd of the income of the deceased towards personal and living expenses of the deceased. Sarala Varma V. Delhi Corporation^[1] envisaged that half of the income of the deceased generally deserves to be deducted towards the personal and living expenses of the deceased, in case of a bachelor. I see no reason to treat this case as a special case differing from the view in Sarala Varma’s case. Hence, ½ of the annual notional income should be deducted towards the personal and living expenses of the deceased. Consequently half of the income of the deceased at Rs.25,800/only needs to be multiplied by 11, taking the age of the mother as the

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deciding factor for the application of multiplier. If the annual notional income towards loss of dependency at Rs.25,800/- is multiplied by 11, the amount would be Rs.2,83,800/-. The claimants are entitled to Rs.10,000/- towards loss of estate, Rs.10,000/- towards love and affection and Rs.2,000/- towards funeral expenses. The claimants accordingly are entitled to compensation at

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a)	Compensation towards loss of dependency, loss of income and future expectancy of life	Rs. 2,83,800-00
b)	Compensation towards loss of estate	10,000-00
c)	Compensation towards loss of love and affection	10,000-00
d)	Compensation towards funeral expenses	2,000-00
	Total	3,05,800-00

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The claimants accordingly are entitled to compensation at Rs.3,05,800/- together with interest at 9% per annum as granted by the Tribunal.

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The appeal accordingly deserves to be allowed in part. The claimants are awarded compensation at Rs.3,05,800/- together with interest at 9% p.a. from the date of the petition till deposit. The claimants 1 and 2 are entitled to equal halves of the same together with respective share of interest. The insurer and the owner of the vehicle, who are the appellant and respondent No.3, shall deposit the awarded amount within one month from today.

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After deposit, the claimants shall be entitled to withdraw Rs.75,000/each at the first instance. The balance shall lie in fixed deposit for a period of three years, at the end of which, the claimants shall be entitled to withdraw the balance together with accrued interest. In the event of urgency, the claimants may approach the Tribunal for withdrawals. The Tribunal shall decide such petitions, if any. Miscellaneous petitions pending, if any, in this appeal shall stand closed.

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______________________ JUSTICE K.G. SHANKAR

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Dt.05^th November, 2012. Vjl

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[1] 2009 ACJ 1298

The National Insurance Co.Ltd.Hyd. v. K.Venkata Ram Reddy and 2 Ors.

Case brief

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The National Insurance Co.Ltd.Hyd. v. K.Venkata Ram Reddy and 2 Ors.

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