IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT JAMMU
RAJNESH OSWAL, J.
New India Assurance Co. Ltd. – Petitioner
Versus
Sehdev Singh & Ors. – Respondents
MA No. 433 Of 2011(O&M)
Decided On : 25-02-2022
MOTOR ACCIDENTS - COMPENSATION CLAIM - MOTOR VEHICLES ACT, 1988; SRO 94; RULE 20(bbb) - The court discussed the provisions of the Motor Vehicles Act regarding compensation for death in motor vehicle accidents, emphasizing that deductions for pension or insurance benefits are not permissible. The interpretation of family pension rules was also analyzed, clarifying that such benefits do not negate the right to compensation under the Act. The court's decision was influenced by precedents that establish the principle of 'just compensation' without deductions for benefits accrued from the deceased's lifetime contracts.
Fact of the Case:
The case involves two appeals by an Insurance Company against a Tribunal's award of Rs. 13,50,000 in compensation for the death of Davinder Singh in a road accident. The claims were filed by his widow and parents, with the widow seeking a larger share of the compensation.
Finding of the Court:
The court found that the Tribunal had correctly assessed the compensation based on the deceased's income and applicable multipliers. It rejected the Insurance Company's argument regarding the widow receiving a pension, as no evidence supported this claim.
Issues: 1. Whether the accident was due to negligent driving. 2. The appropriate quantum of compensation. 3. The Insurance Company's liability considering the pension benefits to the claimants.
Ratio Decidendi: The court reiterated that compensation under the Motor Vehicles Act should not be reduced by any pension or insurance benefits the claimants might receive, as these are not directly related to the death caused by the accident. The court also clarified the correct application of multipliers and deductions for personal expenses.
Final Decision: The court modified the Tribunal's award, adjusting the compensation distribution to favor the widow while ensuring the parents also received a share. The total compensation was set at Rs. 13,34,800, with specific allocations for loss of dependency, consortium, funeral expenses, and loss of estate.
JUDGMENT :
(Rajnesh Oswal, J.) :
1. The two separate appeals bearing Nos. 433/2011 and 411/2011 have been preferred by the appellant- Insurance Company against the judgment and award dated 21.04.2011 passed by the Motor Accidents Claims Tribunal, Kathua (hereinafter to be referred as the Tribunal) by virtue of which two claim petitions one bearing file No. 11/CP, titled, 'Sehdev Singh & Ors. v. Jasbir Singh & Ors.' filed by the parents as well as siblings of the deceased and the other bearing file No. 5/CP, titled, Reena Jasrotia v. Jasbir Singh and Ors. filed by the widow of the deceased, have been decided and the appellant has been directed to pay compensation of Rs. 13,50,000/- along with interest of 7.5% per annum from the date of filing of the claim petition till its realization to the respondents/claimants, namely, Reena Jasrotia (widow), Sehdev Singh (father) and Smt. Sudershna Devi (mother) in three equal shares.
2. Simultaneously, the claimant-Reena Jasrotia (widow) has also filed an appeal bearing MA No. 436/2011 against the aforesaid award for proper apportionment of the compensation as she claims to be entitled to 2/3rd of the compensation awarded by the Tribunal.
3. In both the appeals, the appellant-Insurance Company has impugned the award on the ground of quantum of compensation and it has been submitted that the respondent-Sehdev Singh is a retired Government servant drawing pension and respondent-Smt. Sudershna Devi is his wife and dependent upon him and as such, they are not entitled for compensation and further that the respondent-Reena Jasrotia being the widow of the deceased would be getting pension equivalent to the salary of the deceased for the next seven years from the death of the deceased but the learned Tribunal has not considered this aspect of the case.
4. Mr. Rupinder Singh, learned counsel for the appellant-Insurance Company has vehemently argued that the father of the deceased was never dependent as he was a retired Government servant getting pension and further the widow of the deceased would be getting the pension equivalent to the salary of the deceased for next seven years but the learned Tribunal has not considered the said fact. He further submitted that the quantum of compensation has not been correctly assessed.
5. Per contra, Mr. Anil Gupta, learned counsel for the claimant/respondent- widow of the deceased has not raised the dispute with regard to the quantum of compensation but he submitted that the respondent-Reena Jasrotia has become widow in a young age of 22 years and further that the father of the deceased is a retired Government servant and the mother of the deceased is also dependent upon him, as such, the two-third of the awarded amount be granted to the claimant-widow of the deceased.
6. Heard and perused the record.
7. Facts necessary for disposal of the present appeal are that the claim petition was filed by the widow of the deceased-Davinder Singh for grant of compensation on account of death of her husband in a road accident at Kali Bari Chowk near NHW on 14.12.2005. The parents along with the sister and brother of the deceased filed another claim petition for grant of claim and both these claim petitions were clubbed and the learned Tribunal framed the following issues.
“1. Whether the accident took place on 10.12.2005 at Kali Bari Chowk NHW Kathua due to rash and negligent driving of offending vehicle bearing Registration No. PW 12 D 9477 by respondent No. 1 as a result of which the deceased Devinder Singh sustained fatal injuries? OPP
2. In case Issue No. 1 is proved in affirmative to how much compensation the petitioners are entitled to? OPP
3. Whether the driver of the offending vehicle was not holding a valid and effective driving license at the time of accident and it was being plied in contravention of the RC, RP and FC and as such, the insurance company is not liable to pay any compensation? OPR-3
4. Relief .”
8. The claimants examined PW Aman Sharma, PW Swarn Singh, PW Ree
Sebastiani Lakra v. National Insurance Co. Ltd.
AI
Compensation for death in motor vehicle accidents under the Motor Vehicles Act cannot be reduced by pension or insurance benefits, as these are not directly linked to the accident, and the principle ....
The main legal point established in the judgment is that claimants are entitled to just compensation under the Motor Vehicles Act, and any pecuniary advantage accrued to the deceased should not be de....
The pension drawn by the deceased can form the basis for the determination of compensation for loss of dependency.
Compensation for wrongful death under the Motor Vehicles Act must not deduct pension or insurance benefits; claimants are also entitled to future prospects enhancement regardless of the deceased's ag....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.