Bharti Axa General Insurance Co. Ltd v. Rambir Singh

1. The appellant has challenged the award of the Claims Tribunal whereby compensation of Rs.13,70,000/- has been awarded to respondents No.1 and 2.

2. On 01st April, 2014, Shiva, Jitender and Mohit were going on a motorcycle bearing No.UP-13P-1130 and when they reached in front of 2018:DHC:3189 Babu Mudhi, Kashba Police Station, Aurangabad, District Bulandshahar, U.P., they were hit by a bus bearing No.UP-13D-0786 which came from the wrong side. The accident resulted in death of Shiva and Jitender whereas Mohit suffered injuries.

3. The deceased, Jitender was aged 28 years at the time of the accident and was teaching Mathematics earning Rs.15,000/- per month. The deceased was survived by his parents who filed claim petition for compensation before the Claims Tribunal.

4. The Claims Tribunal took the income of the deceased as Rs.15,000/per month, deducted 50% towards personal expenses and applied the multiplier of 13 to compute the loss of dependency as Rs.11,70,000/-. The Claims Tribunal awarded Rs.[1] lakh towards loss of love and affection, Rs.50,000/- towards loss of estate and Rs.50,000/- towards funeral expenses. The total compensation awarded is Rs.13,70,000/-.

5. Learned counsel for the appellant urged at the time of the hearing that the deceased was contributory negligent as he was not holding a driving licence and three persons were riding on a motor cycle. It is further submitted that the compensation for loss of love and affection be set aside and the compensation of loss of estate and funeral expenses be reduced to Rs.15,000/- each in terms of National Insurance Co. Limited v. Pranay Sethi, 2017 SCC Online SC 1270.

6. Learned counsel for the appellant further submits that the appellant is claiming recovery rights against the owner of the offending vehicle on the ground that the cheque issued by the insured towards the insurance premium was dishonoured and the policy was cancelled. The appellant seeks permission to lead additional evidence to prove the dishonour of the cheque and cancellation of policy.

7. Learned counsel for respondents No.1 and 2 submits that the future prospects have not been awarded and lower multiplier of 13 has been applied by the Claims Tribunal.

8. Learned counsel for respondents No.3 and 4 submit that the appellant has not led any evidence with respect to their claim of recovery rights.

9. This Court is of the view that the compensation awarded by the Claims Tribunal does not warrant any reduction as the Claims Tribunal has not awarded any compensation for future prospects and applied lower multiplier. However, the enhancement is also not warranted as the deceased, Jitender was contributory negligent as he was not holding a driving licence and three persons were riding on the motor cycle. This Court is satisfied that the compensation awarded by the Claims Tribunal is just, fair and reasonable. The compensation of Rs.13,70,000/- awarded by the Claims Tribunal to respondents No.1 and 2 is upheld. Respondents No.1 and 2 accept the award of the Claims Tribunal and have withdrawn their crossobjections for enhancement.

10. The appellant’s claim for recovery rights against the owner of the offending vehicle is remanded back to the Claims Tribunal. The appellant is permitted to lead additional evidence before the Claims Tribunal on the issue of recovery rights. The Claims Tribunal shall thereafter afford an opportunity to respondents No.3 and 4 to lead evidence in rebuttal. The Claims Tribunal shall adjudicate the appellant’s claim for recovery right after recording the additional evidence.

11. The appellant has deposited Rs.17,34,157/- with the Registrar General of this Court in terms of order dated 8th December, 2017.

12. The Registrar General is directed to disburse the aforesaid amount to respondents No.1 and 2 in the following manner:

(i) Rs.15 lakhs be kept in 120 FDRs of Rs.12,500/- each for the period 1

(ii) The balance amount after keeping Rs.15 lakhs in FDRs be released to respondents No.1 and 2 in equal share to their following savings bank accounts: Respondent No.1, Rambir Singh A/c No.50440443336 with Allahabad Bank, Delhi Azadpur Branch, IFSC Code: ALLA0210711 Respondent No.2, Savitri Devi @ Sarvati A/c No.50440439261 with Allahabad Bank, Delhi Azadpur Branch, IFSC Code: ALLA0210711

13. All the original FDRs shall remain with the UCO Bank. However, the statement containing FDR number, amount, date of maturity and maturity amount shall be furnished by UCO Bank to the respondent No.1 and 2.