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2021 Supreme(Gau) 171
IN THE HIGH COURT OF GAUHATI
Parthivjyoti Saikia, J.
National Insurance Company Ltd - Appellant
Versus
Rekha Barman And Ors - Respondent
MACAPP No. 152 of 2015
Decided On : 15-03-2021
R.D. Mozumdar, Advocate, L.P. Nathr, Advocate
The correct calculation method for compensation in motor accident cases, as established in the decision of National Insurance Company Limited Vs. Pranay Sethi & Others, (2017) 16 SCC 680, was applied by the court.
Headnote:
Motor Vehicles Act - Calculation of Compensation - The court determined the correct calculation of compensation for a motor accident victim, considering factors such as loss of dependency, funeral expenses, loss of estate, loss of consortium, and loss of love and guidance. The court referred to the decision in National Insurance Company Limited Vs. Pranay Sethi & Others, (2017) 16 SCC 680 to establish the correct calculation method.
Fact of the Case:
The case involved an appeal against a judgment and award related to a motor accident claim. The appeal sought enhancement of the awarded compensation.
Finding of the Court:
The court found that the Tribunal had erred in adding 50% of future prospect in the calculation of compensation.
Issues: The main issue was whether the Tribunal had erred in adding 50% of future prospect in the calculation of compensation.
Ratio Decidendi: The court referred to the decision in National Insurance Company Limited Vs. Pranay Sethi & Others, (2017) 16 SCC 680, which established the correct calculation method for compensation in such cases.
Final Decision: The appeal was allowed, and the respondent was directed to receive a reduced amount of compensation. The remaining amount was to be returned to the Insurance Company with an additional interest rate of 6% per annum.
JUDGMENT
Parthivjyoti Saikia, J. - Heard Ms. R. D. Mozumder, the learned counsel appearing for the appellant as well as Mr. P.D. Nair and Mr. A.J. Sharma, the learned counsel appearing for the respondent.
2. The instant appeal is filed under Section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as "MV Act") is preferred against the judgment and award dated 21.01.2015, passed by the learned Additional District Judge (FTC) No. 3, Kamrup, in MAC Case No. 1960/2009. This appeal has been filed for enhancement of award.
3. The MAC Case No. 1960/2009 revolved around the death of 35 years old person because of a motor accident. The Tribunal used the multiplier of 15 and monthly income of the deceased to be Rs. 4000/- per month. Thereafter, the future prospect of 50% was added. The calculation made by the Tribunal is as under:
Loss of dependency | = | Rs. 8,10,000/- |
Funeral and other expenses | = | Rs. 25,000/- |
Loss of estate | = | Rs.10,000/- |
| Loss of consortium to the claimant no. 1 | = | Rs. 1,00,000/- |
Loss of love and guidance to other 4 claimants | = | Rs. 4,00,000/- |
Total | = | Rs. 13,45,000/- |
4. The Insurance Company has claimed that the deceased was below 40 years of age, therefore, the future prospect should have been 40%.
5. Therefore, the only point for determination is as to whether the Tribunal had erred in adding 50% of future prospect.
6. In National Insurance Company Limited Vs. Pranay Sethi & Others, (2017) 16 SCC 680, a five Constitution Bench of Hon'ble Supreme Court has held that in case of a self employed or fixed salaried person 40% of the income should be added. Moreover, so far as the funeral expenses, loss of estate, loss of consortium and loss of love and guidance to others are concerned, Pranay Sethi (supra) has made it clear that for all these heads, all together an amount of Rs. 70,000/- shall be paid. Therefore, the correct calculation will be like this :
Loss of dependency : | Rs.4000/- + Rs. 1600/- |
Rs.12.5,600/- x12= Rs. 67,200/- | |
Rs. 67,200/ - Rs. 16,800/- =Rs.50,400/- | |
Rs. 50,400/- x 15 = 7,56,000/- | |
| Funeral and other expenses | |
| Loss of estate | = Rs. 70,000/- |
| Loss of consortium to the claimant no. 1 | |
| Loss of love and guidance to other four claimants | |
| Total | = Rs. 8,26000/- |
7. That being the position, the respondent will be entitled to received Rs. 8,02,600/- only instead of Rs. 13,45,000/-
8. The appeal is allowed. It is hereby directed that the respondent shall be entitled to received Rs. 8,26000/- only from the appellant Insurance Company. The Insurance Company has already deposited Rs. 10,000/- on 14.10.2015, out of the earlier awarded amount of Rs. 13, 45000/. The remaining Rs. 1,74,000/- shall be return to the Insurance Company. The rate of interest will be 6% per anum from 14.10.2015.
The appeal is allowed with the aforesaid observation.
