ICICI Lombard General Insurance Co. Ltd. vs Rajwati and Others

G. P. Mittal, J.—Aggrieved by the grant of compensation of Rs. 7,80,669/- the Appellant ICICI Lombard General Insurance Co. Ltd. impugns the award on the ground that the compensation awarded is excessive.

The case relates to death of Vijay Singh, who was aged 41 years on the date of the accident, which took place on 19.11.2009. The Respondents claimed before the Tribunal that the deceased was a self-employed person ironing clothes and earning Rs. 6,000/- per month. In the absence of any documentary evidence regarding proof of the deceased''s income, the Tribunal took the minimum wages of an unskilled worker i.e. Rs. 3,953/- per month, added 30% on account of inflation and price index, deducted 1/5th towards personal expenses considering the large family of the deceased and computed the dependency as Rs. 6,96,888/-.

In view of the judgments of this Court in (i) UPSRTC v. Munni Devi, IV (2009) ACC 879 ; (ii) National Insurance Company Ltd. Vs. Renu Devi and Others, ; and (iii) Narinder Bishal & Anr. v. Rambir Singh & Ors. MAC APP. 1007-08/2006 decided by this Court on 20th February, 2008, 50% of the minimum wages have to be added to offset the inflation due to indexation. The minimum wages are revised not only to meet the inflation but also to improve the standard of living of the lowest paid workers and hence there is need to add 50% of the minimum wages to arrive at the victim''s income. In this case, the deceased''s age was 41 years and thus considering the smaller years of dependency the benefit of 30% was rightly given by the Tribunal. To achieve uniformity in award of compensation under non-pecuniary heads, I would reduce the amount of Rs. 60,000/- assessed towards loss of love and affection to Rs. 25,000/-. The overall compensation stands reduced to Rs. 35,000/-, which shall be paid to the Appellant along with interest. The compensation awarded is tabulated hereunder: -

Sl. No.

Head of Compensation

Compensation granted by the

Compensation granted by the

Tribunal

High Court

1.

Loss of dependency

Rs. 6,90,669/-

Rs. 6,90,669/-

2.

Loss of consortium

Rs. 10,000/-

Rs. 10,000/-

3.

Loss of estate

Rs. 10,000/-

Rs. 10,000/-

4.

On account of love & affection

Rs. 60,000/-

Rs. 25,000/-

5.

Funeral expenses

Rs. 10,000/-

Rs. 10,000/-

Total

Rs. 7,80,669/-

Rs. 7,45,669/-

The compensation of Rs. 7,45,669/- along with proportionate interest shall be payable to the Respondents No.1 to 7 in the proportion as granted by the Tribunal. The amount of Rs. 35,000/- along with interest shall be refunded to the Appellant.

The appeal is allowed in above terms. The statutory amount, if deposited by the Appellant, shall also be returned.