Oriental Insurance Co Ltd v. Som Lata & Ors

J U D G M E N T G. P. MITTAL, J. (ORAL)

¶1The Appeal is for reduction of compensation of `10,46,400/- awarded by the Motor Accident Claims Tribunal (the Claims Tribunal) in favour of Respondents No.1 to 5 for the death of Suresh Kumar who died in a motor vehicle accident which occurred on 27.11.2009.

¶2The following contentions are raised on behalf of the Appellant:-

(i) There was no evidence with regard to deceased's future prospects. Even then, the Claims Tribunal made an addition of 50% towards future prospects.

(ii) The compensation of `1,25,000/- towards loss of love and affection is on the higher side and only a nominal sum is awarded towards non-pecuniary damages in case of fatal accidents.

¶3During inquiry before the Claims Tribunal it was claimed that the deceased Suresh Kumar was in private service and was earning `8,000/- per month. In the absence of any evidence with regard to Suresh Kumar's employment or his income, the Claims Tribunal adopted the minimum wages of unskilled worker to compute the loss of dependency. Since there was no evidence that the deceased was doing a skilled job, it was appropriate to take minimum wages of unskilled worker to compute the loss of dependency. Admittedly, there was no evidence with regard to decease's future prospects. The Claims Tribunal relied on Narender Bishal & Anr. v. Ramit Singh & Ors., MAC APP.1007-08/2006 decided on 20.02.2008 and granted 50% increase on account of inflation.

¶4In the absence of any evidence with regard to deceased's future prospects addition of 50% was not justified, rather there could be an addition of 30% on the basis of latest report of the Supreme Court in Santosh Devi v. National Insurance Company Ltd. & Ors., 2012 (4) SCALE 559;

¶5The loss of dependency thus comes to `6,93,751/- (3953/- + 30% x ¾ x 12 x 15).

¶6The Claims Tribunal awarded a compensation of `1,25,000/- towards loss of love and affection. Loss of love and affection can never be measured in terms of money. When full compensation is awarded towards loss of dependency, only a nominal sum is awarded towards loss of love and affection. Thus, uniformity has to be adopted by the Courts while granting non-pecuniary damages. The Supreme Court in Sunil Sharma v. Bachitar Singh (2011) 11 SCC 425 and in Baby Radhika Gupta v. Oriental Insurance Company Limited (2009) 17 SCC 627 granted only ` 25,000/- (in total to all the claimants) under the head of loss of love and

affection. Thus, I would reduce the compensation under this head from `1,25,000/- to ` 25,000/- only.

¶7On making further addition of `10,000/- each towards loss of estate, loss of consortium and funeral expenses, the overall compensation comes to `7,48,751/- as against `10,46,000/- awarded by the Claims Tribunal.

¶8Thus there is reduction of `2,97,249/- in the compensation award.

¶9The excess amount of `2,97,249/- along with proportionate interest and the interest accrued, if any, during the pendency of the Appeal shall be refunded to the Appellant Insurance Company.

¶10The compensation awarded shall be released/held in fixed deposit in favour of Respondents No.1 to 5 (the Claimants) in terms of the order passed by the Claims Tribunal.

¶11The statutory deposit of `25,000/- be refunded to the Appellant Insurance Company.

¶12The Appeal is allowed in above terms.

¶13Pending Applications also stand disposed of.

(G.P. MITTAL) JUDGE OCTOBER 05, 2012 vk

* IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 5th October, 2012 + MAC.APP. 1024/2011 THE ORIENTAL INSURANCE COMPANY LTD....... Appellant Through: Mr. J.P.N. Shahi, Adv. versus SOM LATA & ORS. ..... Respondent Through: Mr. Anshuman Bal, Adv. for R-1 & R-5 Ms. Anupma Kaul, Adv. for R-6 & R-7. CORAM: HON'BLE MR. JUSTICE G.P.MITTAL