New India Assurance Company Ltd vs Rambeti & Others

Alok Singh, J

1) Present Appeal from Order has been preferred by the appellant-insurance company under Section 173 of the Motor Vehicles Act against the judgment and award dated 05.06.2017 passed by the Motor Accident Claims Tribunal / District Judge, Champawat in M.A.C.P. No.10 of 2016, Smt. Rambeti & another vs. Pradeep Kumar & another, whereby the learned Tribunal has allowed the claim petition and awarded an amount of Rs.5,81,000/-. It was directed that the insurance company shall pay the awarded amount to the claimants within one month from the date of the award and, in default of making the payment within the stipulated period, the award shall carry further simple interest @ 9% from the date of award till realization.

2) Brief facts of the case are that a claim petition was filed by the claimants alleging therein that on 23.12.2015 deceased Devanand @ Sonu was riding on a motorcycle along with his brother Shankar Lal; when they were going towards Pillibhit, the offending vehicle No.UP25-AT 3316 (Magic) dashed the motorcycle, resulting which the deceased sustained injuries; and he was admitted to the hospital for medical treatment and ultimately he succumbed to his injuries. At the time of accident, the deceased was about 21 years of age and he was earning a sum of Rs.15,000/- per month.

3) The Tribunal, after considering the material evidence on record, held that the accident took place due to rash and negligent driving of the driver of vehicle (Magic) in question; and the vehicle was being driven by the driver in violation of the terms and conditions of the insurance policy. The Tribunal further held that since the driver of the offending vehicle was not having valid driving licence at the time of accident, hence, it was directed that the insurance company would be entitled to recover the awarded amount from the owner of the offending vehicle. Ultimately, the Tribunal allowed the claim petition for a total sum of Rs.5,81,000/- as compensation.

4) The Tribunal, after considering the evidence led by the parties, assessed the income of the deceased at Rs.48,000/- per annum. After deducting one-third of the annual income of the deceased towards the expenses which he would have incurred towards maintaining himself had he been alive, the claimants' dependency was assessed at Rs.32,000/- per annum (Rs.48,000 x 1/3rd = Rs.16,000).

5) So far as one-third deduction for personal and living expenses of the deceased is concerned, the Tribunal has committed an error, in as much as, Hon'ble Supreme Court in Sarla Verma's case (supra) held that 50% would be deducted as the personal and living expenses of the bachelor and 50% as the contribution to the family. The Tribunal should have deducted half (½) of the annual salary of the deceased towards the expenses which he would have incurred towards maintaining himself had he been alive. Thus, after deducting one-half of the annual salary of the deceased towards the expenses which he would have incurred towards maintaining himself had he been alive, the claimants' dependency is, now, assessed at Rs.24,000/- per annum (Rs.48,000 minus ½ of Rs.48,000 = Rs.24,000).

6) Now, by multiplying the annual dependency of Rs.24,000/-with the multiplier of '18', the compensation is worked out to Rs.4,32,000/- (Rs.24,000 x 18 = Rs.4,32,000). The insurance company will follow the doctrine of "pay and recover". This view is fortified by the decision of Hon'ble Supreme Court in Manuara Khatun & others vs. Rajesh Kr. Singh & others, 2017 (2) T.A.C. 5 (S.C.).

7) In view of above, the appeal is partly allowed. The impugned judgment and award is modified to the above extent. No order as to costs.