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Judgment
K. Kannan, J. (Oral) - CM No. 1571 CII of 2015
For the reasons stated in the application, delay in filing the appeal is condoned.
CM stands disposed of.
Main case
All the three cases relate to the same accident where the driver of a motor cycle and the pillion riders were hit from behind by the insured vehicle. The deceased were two persons, one of whom was 22 years of age. With particularly no proof of income, the Tribunal took his income at RS. 5200/- and for a claim by the parents, brother and sister, assessed compensation at RS. 7,97,200/-. The insurance company is in the appeal contending that the assessment is erroneous and does not conform to the mode of assessment prescribed in Sarla Verma v. Delhi Transport Corporation, 2009 (6) SCC 121. This is the subject matter of appeal is FAO No. 583 of 2015. The claimants are in appeal in FAO No. 2002 of 2015 complaining of the assessment of inadequacy.
The assessment by the Tribunal providing for �th deduction and applying for a multiplier of 11 cannot be supported. I will re-work the compensation taking the income at RS. 5200/-, as already taken, provide for = deduction and apply a multiplier of 18. The loss of dependency will be at RS. 8,42,400/- and make a provision for loss of love and affection for the mother at RS. 1 lakh and funeral expenses and loss to estate at RS. 25,000/- and RS. 5,000/- respectively. The total compensation payable shall be RS. 9,72,400/-. Several heads of claims are tabulated as under:-
Fatal Accident
Date of accident
Age
22
12/01/14
Occupation
Claimants:
Parents, brother and sister
Heads of claim
Tribunal
High Court
Sr. No.
Amount ( RS. )
Amount ( RS. )
1.
Income
5200
5200
2.
Add, 50% of increase
7800
7800
3.
Deduction 7800x 1/4
5850
X1/2=3900
4.
Multiplicand (annualized)
70200
46800
5.
Multiplier
11
18
6.
Loss of dependence
7,72,200
8,42,400
7.
Medical expenses
8.
Loss of Consortium
9.
Loss of love and affection for parents
1,00,000
10.
Loss to estate
5000
11.
Funeral Expenses
25000
25000
Total
7,97,200
9,72,400
The award is modified the appeal by the insurance company is partly allowed. The amount shall be distributed only among the parents of the deceased.
In FAO No. 3571 of 2015, the claim is at the instance of the wife, two minor children and the parents. The deceased was 33 years of age and was a cook. The Tribunal took his income at RS. 5200/-, made a prospects of increase at 50% and provided total RS. 12,73,100/- as compensation payable. The deduction applied was erroneous at ⅕th and I have re-work the compensation taking the deduction at �th and providing for loss of consortium and loss of love and affection for the children at RS. 1 lakh each and RS. 50,000/- for each parent. Several heads of claim are tabulated as under:-
Fatal Accident
Date of accident
Age
33
Occupation
Cook
12/01/14
Claimants:
Widow, two minor children and parents
Sr. No.
Heads of claim
Tribunal Amount ( RS. )
High Court Amount ( RS. )
1.
Income
5200
5200
2.
Add, 50% of increase
7800
7800
3.
Deduction 7800 x 1/5
6240 1/4=5850
4.
Multiplicand (annualized)
74880
70200
5.
Multiplier
16
16
6.
Loss of dependence
11,98,080
11,23,200
7.
Medical expenses
8.
Loss of Consortium
50000
1,00,000
9.
Loss of love and affection for children and parents
3,00,000
10.
Loss to estate
5000
11.
Funeral Expenses
25000
25000
Total
12,73,080
15,53,200
The total compensation payable shall be RS. 15,53,200/-. The award of the Tribunal is modified and the appeal by the claimants stands allowed. The additional compensation will attract interest at the rate of 9% from the date of petition till the date of payment.
The additional amount shall also be distributed in ratio of 2:2:2:1:1 amongst the wife, minor children and the parents respectively. As regards the share of the parents, it shall be distributed forthwith and as regards the claim of the wife, considering the fact that the accident had taken place in the year 2014, 25% of the amount shall be permitted to be withdrawn and 75% of the amount for the wife shall be deposited in a nationalised bank for a period of 10 years, splitting for ten equal portions, 1st portion for a period of one year, 2nd portion for a period of two years and so on upto 10 years. As regards, the share of the two minor children, the entire amount shall be deposited in a nationalised bank during the period of minority of the respective children and interest to be paid once in three months to the mother by cheque drawn in her favour towards maintenance of the children. On attaining the majority, they will be permitted to withdraw 75% and remaining 25% shall be deposited in a nationalised bank for a period of three years, splitting in three equal portions, 1st portion for a period of one year, 2nd portion for a period of two years and the 3rd portion for the three years. There shall be standing instruction given to the bank to which the deposits are made that amounts will be deposited in the manner directed and cheques drawn in favour of the persons entitled to the same directly with due intimation to the Tribunal.
The appeals are disposed of as above.