Divisional Manager vs Ramachandran And Others

N.Kirubakaran, J

The appeal has been preferred by the insurance company against the award of Rs.66,62,296/- for the death of one Mr.Rajashekar, aged about 25 years working in IBM, earning about a sum of Rs.45,000/- per month in the accident occurred on 25.05.2011, when the deceased was a pillion rider along with his friend from Kondapur signal towards Kothaguda Road and hit down by a lorry belonging to the 4th respondent and insured with the appellant/insurance company, driven rashly and negligently.

2.Heard Mr.R.Sivakumar, learned Counsel for the appellant and Mr.Sai Krishnan, learned Counsel for the respondents.

3.There is no dispute with regard to the negligence aspect as the appeal has been filed only against the quantum of compensation by the insurance company.

4.It is proved before the Tribunal that the deceased was earning about a sum of Rs.45,000/- per month as per Ex.P.15 viz., pay slip. Further, his employment was proved by Ex.P.12 viz, Letter issued by IBM company dated 07.01.2010 calling upon the deceased to join their company and by Ex.P.13 viz., service identity card of the deceased. Hence, Rs.45,009/- was rightly taken as Monthly Income by the Tribunal based on the available evidence. The salary of the deceased was also further confirmed by Ex.P.15 viz., Statement of account of the deceased. Therefore, Rs.45,000/- fixed by the Tribunal is confirmed.

5.The Tribunal, however, added 50% towards future prospects. Since it is a private company 40% alone has to be added towards future prospects. If 40% is added, the Monthly Income would be Rs.45,009/- + 40% (Rs.18,003/-) = Rs.63,012/-.

6.Since the deceased was a bachelor 50% has to be deducted towards personal expenses. If 50% is deducted, the Loss of Income would be Rs.63,012 - 50% = Rs.31,506/-. The age of the deceased is 25 years as proved by Ex.P.7 viz., driving licence and therefore, multiplier '18' was rightly adopted by the Tribunal and further, 10% has to be deducted towards Income Tax and hence, the Loss of Income would be Rs.31,506/- x 12 x 18 - 10% = Rs.61,24,680/-.

7.Rs.75,000/- awarded toward Loss of Love and Affection is on the higher side and the same is reduced to Rs.50,000/- and Rs.25,000/- awarded toward Funeral Expenses is on the higher side and the same is reduced to Rs.15,000/-. No amount has been awarded towards Loss of Estate and Transportation and therefore, Rs.15,000/- is awarded towards Loss of Estate and Rs.10,000/- is awarded towards Transportation. Therefore, the sum of Rs.66,62,296/- awarded by the tribunal is modified as follows:

SI.No

Head

Amount (Rs.)

1.

Loss of income

61,24,680/-

2.

Loss of Love and affection

50,000/-

3.

Funeral Expenses

15,000/-

4.

Loss of estate

15,000/-

5.

Transportation

10,000/-

Total

62,14,680/

8.Hence, the total compensation payable in this case is Rs.62,14,680/-. The interest awarded by the Tribunal at the rate of 7.5% per annum is confirmed. Since respondents 1 to 3 are dependants viz., parents and young unmarried sister, each one of them is entitled to 1/3rd share of the award amount.

9.The appellant/insurance company is directed to deposit the entire award amount as per the order of this Court before the Tribunal along with interest and costs after deducting the amount, if any, already deposited within a period of four weeks from the date of receipt of a copy of this order. On such deposit being made, the Tribunal is directed to transfer the respective shares of the claimants as per the ratio fixed by this Court to their respective accounts through RTGS within a period of one week.

N.Kirubakaran, J.

And

Abdul Quddhose, J.

ay

Accordingly, this appeal is partly allowed by reducing the award of the Tribunal from Rs.66,62,296/- to Rs.62,14,680/-. No costs. Consequently, connected miscellaneous petition is closed.