The Oriental Insurance Co. Ltd. vs Valsala and Others

A.V. Ramakrishna Pillai, J.—Under challenge in these appeals is an award passed by the Motor Accidents Claims Tribunal, Kottayam in O.P. (MV) No. 857/07. The claim arose out of a road traffic accident occurred on 18/03/07 in which one Vijayakumar met with his death while he was travelling on the pillion of a motorcycle. Allegedly the deceased who was thrown down on account of the negligence of the driver of the motorbike sustained very serious injuries to which he succumbed on the next day while undergoing treatment.

The appellants in M.A.C.A. 2096/11 who are the widow, children and other two near relatives approached the Tribunal claiming compensation to the tune of Rs. 12 lakhs. The learned Tribunal after considering the evidence passed the impugned award allowing the appellants in M.A.C.A. 2096/11 to realize a sum of Rs. 6,54,511/- from the Insurance Company (appellant in M.A.C.A. 462/11) with which the offending vehicle was insured. While the claimants challenge the adequacy of compensation, the Insurance Company has come up in appeal challenging the amount of compensation awarded for loss of dependency adopting a higher multiplicand for the entire period of 11 years during which the deceased would have lived had he not sustained the injuries.

We have heard the learned counsel appearing for both sides.

For convenience of discussion, the parties can be referred to as they are arrayed in the Original Petition.

The main challenge raised by the claimants against the impugned award is that though they have alleged in the Original Petition that the deceased was attached to a Milk Co-operative Society and was earning a monthly income of Rs. 9,500/- the learned Tribunal fixed his monthly income at the rate of Rs. 6,085/-. This according to the learned counsel for the appellant was ignoring Ext. A12 certificate issued by the Malanadu Milk Producers Society. It was pointed out that Ext. A12 was proved by the person who issued the same.

We have gone through Ext. A12. In Ext. A12 it is stated that the deceased used to supply milk worth Rs. 4,000/- to Malanadu Milk Producers Society every month. But according to us, Ext. A12 does not inspire confidence as there is absolutely no evidence on record to show that the supply of milk to the society as stated in Ext. A12 was stopped all on a sudden on account of the death of the deceased. During the course of the argument it was submitted by the learned counsel for the Insurance Company that there is no whisper regarding this particular source of income in the Original Petition. We also note the discussions in para 14 of the impugned award. For valid reasons the learned Tribunal has discarded Ext. A12. So, we see no force in the argument advanced by the learned counsel for the appellant and we discard Ext. A12 for arriving the quantum regarding loss of dependency of the appellant in M.A.C.A.2096/11. Apart from the contentions raised regarding the non-acceptance of Ext. A12 no serious challenge is advanced by the learned counsel for the claimant.

As already pointed out at the opening paragraph the challenge raised by the Insurance Company is regarding the adoption of the multiplicand 6085 uniformly for the entire period of 11 years. It was pointed out that the deceased would have demitted his office at the age of 58 had he been alive as he was working with a co-operative society. According to the learned counsel for the Insurance Company for the remaining five years a notional income should have been fixed and the same should have been adopted for fixing the loss of dependency. We find force in the said argument. Hence, the adoption of multiplicand 6085 uniformly for the entire period of 11 years calls for interference. So the compensation awarded for loss of dependency has to be recalculated as under.

Adopting the multiplicand 6085 compensation has to be arrived at for a period of six years. It will come to Rs. 3,28,590/-. For the rest of the period i.e. 5 years a lower multiplicand has to be adopted. Considering the age of the petitioner, we are of the view that he might have earned at the rate of Rs. 3,000/- per month after his retirement. If the loss of dependency for the remaining period is re-calculated adopting the multiplicand Rs. 3,000/- it will come to Rs. 1,35,000/-. Both these figures are arrived at after deducting 1/4th of the income taking into account of the expenses which the deceased would have incurred had he been alive. Thus, total sum that could have been awarded to the claimants towards loss of dependency is Rs. 4,63,590/-. As the Tribunal has awarded a sum of Rs. 6,02,415/- under that head, the award amount shall stand reduced by Rs. 1,38,825/-.

In the result, M.A.C.A.2096/11 is dismissed. M.A.C.A.462/11 is allowed and the award is modified as above.