Full Text
HIGH COURT OF DELHI
Date of Decision: 20th July 2026
TATA AIG GENERAL INSURANCE COMPANY LTD.....Appellant
Through: Mr. Amit Kr Singh, Adv.
Through: Mr. Mohit Kukreja, Adv for Respondent Nos. 1 to 3
JUDGMENT
1. This appeal has been filed by the insurance company assailing the award dated 05th December 2014, passed by the Motor Accident Claims Tribunal, South-District, Saket Courts (‘MACT/Tribunal’) in MACT 242/2012, awarding compensation of Rs.15,04,100/- along with interest at 9% per annum.
2. Mr. Amit Singh, counsel for the insurance company, states that the loss of dependency assessed by the MACT is not tenable. Deceased, Vijay Singh, had two sons and one married daughter on the date of the accident. Out of the two sons, the elder son was already married and working, as per the evidence on record; however, the younger son, Shankar, was stated to be unemployed, and the loss of dependency was calculated taking this into account. MAC.APP. 366/2015 Page- 2 of 5
3. However, counsel for Insurance Company contends that, the younger son, Shankar, who deposed as PW[2], stated that he was working in Mausam Bhawan as a Safai Karamchari.
4. To this, Mr. Mohit Kukreja, counsel for the claimant, submits that the statement of PW[2], “I am working in Mausam Bhawan as a Safai Karamchari”, was made on the date on which his cross-examination was conducted, i.e. on 26th August 2013, and cannot be construed as a statement that he had been employed prior thereto.
5. Moreover, pursuant to the directions passed by this Court on 15th July 2024, the claimants placed on record the service records and affidavits of the sons of the deceased. Pursuant thereto, an affidavit of Shankar has been filed, wherein he has categorically stated that he was unemployed on the date of the accident. His bank statement has also been placed on record. Likewise, the elder son has also filed an affidavit stating that he was employed with NDMC, and his service record has also been placed on record.
6. Counsel for the claimants, therefore, submits that the issue of dependency cannot be decided against the claimants basis this evidence on record.
7. This Court, having perused the record, finds merit in the submission advanced by counsel for the claimants. The contention raised, is substantiated on an appreciation of the evidence on record, and in that view of the matter, the submission advanced by the insurance company cannot be accepted.
8. Accordingly, the appeal is dismissed. MAC.APP. 366/2015 Page- 3 of 5
9. As regards the other components of compensation, the same are liable to be realigned in view of the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi and Ors. (2017) 16 SCC 680 as under: a) Compensation towards loss of love and affection shall not be awarded in view of the decision in United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur and Ors. (2021) 11 SCC 780; b) Future prospects ought to be awarded at 10% since the deceased was 52 years old at the time of accident. c) Funeral expenses shall be reduced to Rs.15,000/-, instead of Rs.25,000/-; d) Compensation towards loss of estate shall be enhanced to Rs.15,000/-, instead of Rs.10,000/-; and e) Loss of consortium shall be awarded at Rs. 1,20,000/-, i.e. Rs. 40,000/each to the three claimants, namely, daughter and two sons.
10. Accordingly, the revised computation is as under: Sr. No. Heads Awarded by the Tribunal Awarded by the Court
1. Monthly income of the deceased (A) Rs. 20,743/- Rs. 20,743/-
2. Add-Future Prospects (B) NIL 10% of Rs. 20,743/- = Rs. 2,074.30
3. Less-personal expenses of the deceased (C) 1/2 1/2 of Rs. 22,817.30/-= Rs. 11,408.65/-
4. Annual loss of dependency [(A+B) - C ] x 12= D] Rs. 1,24,458/-. Rs. 1,36,903.80
5. Multiplier (E) 11 11
6. Total loss of dependency (D x E) = (F) Rs. 13,69,100/- Rs. 15,05,941.80
7. Compensation for loss of love and affection (G) Rs. 1,00,000/- MAC.APP. 366/2015 Page- 4 of 5
8. Compensation for loss of consortium (H) Nil Rs. 1,20,000/-
9. Compensation for loss of estate (I) Rs. 10,000/- Rs. 15,000/-
10. Compensation towards funeral expenses (J) Rs. 25,000/- Rs. 15,000/- 11. Total Compensation (F+G+H+I+J = K) Rs. 15,04,100/- Rs. 16,55,941.80 (rounded to Rs. 16,55,950)
12. Interest Awarded 9% per annum 9% per annum
13. Enhanced Compensation Rs. 1,51,850/-
11. Accordingly, the compensation is enhanced by Rs. 1,51,850/-.
12. Enhanced compensation along with accrued interest be deposited by the Insurance Company within a period of 4 weeks before the Registrar General of this Court. The same be released in a lump sum to the claimants within 2 weeks thereafter.
13. Vide order dated 20th April 2015, this Court directed the insurance company to deposit 50% of the awarded compensation before the Registrar General of this Court. Accordingly, the Insurance Company is directed to deposit the balance 50% of awarded compensation along with accrued interest. Upon such deposit, the amount, along with accrued interest, shall be kept in Fixed Deposit Receipts (FDRs) of Rs. 25,000/- each for periods of 1 month, 2 months, 3 months and so on, in succession, as maybe calculated. Interest accruing on said FDRs shall be credited to the designated Savings Bank Account of claimant. The amount of FDRs on maturity would be released to the Savings Bank Account of claimant upon due verification.
14. Accordingly, the appeal stands disposed of. Pending applications, if MAC.APP. 366/2015 Page- 5 of 5 any, are rendered infructuous.
15. Statutory deposit, if any, shall be refunded to appellate/Insurance Company only upon deposit of the enhanced amount along with the accrued interest.
16. Order be uploaded on the website of this Court.
JUDGE JULY 20, 2026/sm/bp