Savitri Devi & Ors. v. Ashok Kumar Dixit & Ors.

1. Chandra Bhoosan @ Chintu, aged 20 years, a bachelor, suffered injuries and died in the consequence in a motor vehicular accident that occurred on 17.10.2015 at 8:45 p.m., involving negligent driving of truck bearing registration No.DL-1GB-7218, admittedly insured against third party risk with the fourth respondent (insurer). His parents, the appellants before this Court, instituted accident claim case (MAC Petition No.1772/2016) on 02.03.2016 seeking compensation.

2. The Motor Accident Claims Tribunal (the Tribunal) after inquiry, by judgment dated 15.11.2016, awarded compensation in the sum of Rs.9,11,164/- (Rupees Nine Lakhs Eleven Thousand One 2017:DHC:4770 Hundred & Sixty Four Only) and directed the fourth respondent to pay the same with interest @ twelve per cent (12%) per annum.

3. The appellants have come up arguing that the loss of dependency was not properly worked out as the multiplier of 11 has been chosen on the basis of age of the mother (51 years) and not as per the age of the deceased, and that the element of future prospects of increase were not factored in. It is also their submission that the nonpecuniary damages are inadequate.

4. Per contra, the insurance company argues that the award is appropriate but the rate of interest levied @ twelve per cent (12%) per annum is unreasonably excessive.

5. On the issue of choice of the multiplier in the case of death of a bachelor, this Court by another decision passed today (24th August,

2017) in MAC APP.467/2016, titled Reliance General Insurance Company Limited vs. Gomti & Ors., has observed as under:-

6. Since the age of the mother was higher, naturally so, the choice of the multiplier made by the tribunal on its basis cannot be grudged.

7. It is noted that no formal and cogent evidence about nature of engagement of the deceased was adduced. In this view the tribunal had no option but to go by the minimum wages of a skilled worker (11,154/-). The calculation of loss of dependency, thus, is found to be appropriate.

8. Following the view taken in MAC.APP.No.160/2015, titled Shriram General Insurance Co Ltd v. Usha decided by this court on 05.05.2016, having regard to the date of accident, the awards under the non-pecuniary damages by the tribunal are found to be deficient. The said heads are increased to Rs.1,50,000/- towards loss of love & affection and Rs.50,000/- each towards funeral expenses and loss of estate are awarded. This would mean, the award would need to be increased by Rs.75,000/- (Seventy five thousand only).

9. Ordered accordingly.

10. The tribunal has not given any specific reason for levy of interest @ twelve per cent (12%) per annum which is way over and above the ordinary. Following the consistent view taken by this Court [see judgment dated 22.02.2016 in MAC.APP. 165/2011 Oriental Insurance Co Ltd v. Sangeeta Devi & Ors.], the rate of interest is reduced to nine per cent (9%) per annum from the date of filing of the petition till realization.