UNITED INDIA INSURANCE CO. LTD v. KRISHNA DEVI & ORS.

1. The present appeal is preferred against the impugned award dated 22.03.2010, whereby the learned Tribunal has granted compensation for a sum of Rs.8,67,000/- with interest at the rate of 9% per annum from the date of filing of the petition till realization of the amount.

2. Learned counsel appearing on behalf of the appellant/Insurance Company submits that the age of the deceased Shri Lallan Prashad was 52 years on the date of the accident, i.e., 02.11.2004. He was working as a driver and was earning Rs.5,000/- per month. While awarding the compensation towards loss of dependency, the learned Tribunal has added 50% of the actual income of the deceased towards future prospects, which is contrary to the cases of Sarla Verma Vs. DTC and Ors. 2009 (6) SCC 121 and Reshma Kumari & Ors. Vs. Madan Mohan and Anr. 2013 (9) SCC 65. 2014:DHC:1258

3. Learned counsel further submits that there were six dependants upon the deceased, i.e., widowed wife and five children. However, the learned Tribunal has deducted one-fifth of the income of the deceased towards personal expenses. Ld. Counsel further submits that the law is settled in the case of Sarla Verma (supra) and if the number of dependents is 4 to 6, then one-fourth of the income of the deceased has to be deducted towards personal expenses. In the present case, there were six dependants upon the deceased, therefore, the learned Tribunal ought to have deducted one-fourth of the income of the deceased towards personal expenses.

4. Recently, in the case of Rajesh and Ors. Vs. Rajbir Singh and Ors. 2013 (6) SCALE 56, the Full Bench of the Apex Court has observed as under:-

that it will only be just and equitable to provide an addition of 15% in the case where the victim is between the age group of 50 to 60 years so as to make the compensation just, equitable, fair and reasonable. There shall normally be no addition thereafter.

5. The issue of future prospects has been dealt by this Court also in the case being MAC. APP. No.846/2011 titled as ICICI Lombard General Insurance Co. Ltd. Vs. Angrej Singh & Ors. decided on 30.09.2013 while relying upon the case of Rajesh (Supra).

6. Admittedly, the deceased was aged 52 years on the date of accident, however, the learned Tribunal has added 50% of the actual income of the deceased towards future prospects.

7. As the issue of deduction of personal expenses is concerned, considering that there were six dependants upon deceased Shri Lallan Prashad, i.e., wife and five dependent children and other legal representatives, namely, Smt.Rama Devi and Smt. Madhu, respondent Nos. 7 and 8 respectively were the married daughters of the deceased, the learned Tribunal has deducted one-fifth from his earnings towards personal expenses.

8. In my considered opinion, Ld. Tribunal has decided both the issues discussed above contrary to the settled position of law.

9. Therefore, firstly, the learned Tribunal ought to have added 15% towards future prospects and secondly, ought to have deducted one-fourth of the income of the deceased towards personal expenses.

10. At this stage, learned counsel appearing on behalf of the respondents/claimants submits that this Court has power to grant just and fair compensation if it is not granted by the Tribunal keeping in mind the facts and circumstances of the case. Further submits though no cross-appeal has been filed by the respondents/claimants, but the compensation granted by the learned Tribunal of Rs.10,000/- each on account of loss of consortium and funeral expenses is on a very lower side.

11. Admittedly, the deceased was aged 52 years, he left behind widow and five children. Therefore, taking into consideration the age of the deceased and the facts and circumstances of the case, justice would be met if I enhance Rs.50,000/- towards loss of consortium and Rs.25,000/- for funeral expenses.

12. Accordingly, the compensation amount comes as under:

┌──────────────────────────────────────────────────────────────────────────────────────┐
│   Sl.    Heads of               Compensation       Compensation                      │
│   No.    Compensation           granted by ld.     granted by this                   │
│                                 Tribunal           Court                             │
├──────────────────────────────────────────────────────────────────────────────────────┤
│   1.     Loss of dependency     Rs.6,37,000/-      Rs.4,57,470/-                     │
│   2.     Loss of love and Rs.2,00,000/-            Rs.2,00,000/-                     │
│          affection                                                                   │
│   3.     Loss of consortium Rs. 10,000/-           Rs.   50,000/-                    │
│   4.     For funeral expenses   Rs.    10,000/-    Rs.   25,000/-                    │
│   5.     Loss to estate         Rs.    10,000/-    Rs.   10,000/-                    │
│          TOTAL                  Rs.8,67,000/-      Rs.7,42,470/-                     │
│         Accordingly, the total compensation amount is assessed at                    │
│ Rs.7,42,470/-                                                                        │
│ MAC.APP. 372/2010                                        Page 4 of 5                 │
│                                                                      2014:DHC:1258   │
└──────────────────────────────────────────────────────────────────────────────────────┘