IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SUBRAMANIAN, R. KALAIMATHI, JJ.
The Oriental Insurance Co. Ltd., Tiruvannamalai – Appellant
Versus
T. Kannan & Others – Respondents
C.M.A. No. 1393 of 2023 & C.M.P. No. 13927 of 2023
Decided On : 07-07-2023
Motor Vehicles Act, 1988 - Compensation - Quantum of compensation awarded by Motor Accident Claims Tribunal - Appellate Court's refusal to make further deductions from deceased's income - Appeal dismissed
Fact of the Case:
The claimants sought compensation for the death of their son in a road accident. The Tribunal awarded a sum of Rs. 23,72,320 as compensation based on the deceased's monthly income and other factors.
Finding of the Court:
The Appellate Court refused to make further deductions from the deceased's income, stating that the income taken at Rs.13,856 reflects a fair figure, especially considering that the deceased had died before he could take up the employment. The appeal was dismissed.
Issues: Quantum of compensation, deductions from deceased's income
Ratio Decidendi: The Appellate Court found the income taken at Rs.13,856 to be a fair figure and refused to make further deductions, considering the circumstances of the deceased's death.
Final Decision: The Civil Miscellaneous Appeal was dismissed with no costs, and the connected miscellaneous petition was closed.
JUDGMENT
(Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, against the award and decree dated 15.02.2023 passed in M.C.O.P.No.1231 of 2022 on the file of the Motor Accident Claims Tribunal / Principal District Judge, Tiruvannamalai.)
R.Subramanian, J.
1. Challenge at the instance of the Insrance Company is to the quantum of compensation awarded in M.C.O.P.No.1231 of 2022 on the file of the Motor Accident Claims Tribunal, Tiruvannamalai.
2. The claimants, who are the parents of the deceased Suresh Babu sought for compensation at Rs.1,00,00,000/- for the death of their son in an accident that took place on 09.07.2008. The wife and the minor daughter were impleaded as respondents 3 and 4 in the claim petition. According to the claimants, the accident occurred when the said Suresh Babu was proceeding on his two wheeler towards East to West, Tiruvannamalai to Gingee road, near Primary Health Centre, Kilpennathur, the lorry belonging to the 1st respondent bearing Registration No. TN-28-H-2568 driven by its driver in a rash and negligent manner came from behind and hit against the two wheeler. As a result of which, the deceased sustained fatal injuries and died on the same day.
3. According to the claimants, the deceased was earning not less than Rs.40,000/- per month and was contributing his income to the claimants also. The claimants quantified the loss at Rs.1,00,00,000/-. The Insurance Company while admitting the existence of the policy, disputed the quantum of compensation claimed and sought for dismissal of the petition.
4. The Tribunal, on the basis of the evidence that was made available to it, came to the conclusion that the accident occurred only due to the rash and negligent driving of the lorry by its driver. On the quantum, the Tribunal took Ex.P5, the appointment order issued by the ICICI Prudential Life Insurance Company offering a job to the deceased at an annual salary of Rs.1,75,344/-, which included medical reimbursement, EPF contributions, gratuity contributions etc.
5. The Tribunal, after making certain deductions, fixed the monthly income of the deceased at Rs.13,856/-. After adding 25% towards future prospects and deducting 25% towards personal expenses, fixed the monthly income at Rs.10,392/-. Considering the age of the deceased, i.e., 41, the Tribunal adopted a multiplier of 14 and arrived at the loss of dependency at Rs.21,82,320/-. The Tribunal, awarded a sum of Rs.15,000/- for loss of estate, Rs.15,000/- for funeral expenses and Rs.1,60,000/- for loss of consortium / loss of love and affection. In all, the Tribunal awarded a sum of Rs.23,72,320/- as compensation.
6. We have heard Mr.R.Sivakumar, learned counsel for the apellant / Insurance Company.
7. Mr.R.Sivakumar, learned counsel appearing for the appellant / Insurance Company would vehemently contend that the Tribunal should have made some more deductions as the salary reflected in Ex.P5 sought to include medical reimbursement and conveyance allowance. We are unable to agree with the contention made by the learned counsel for the appellant. On a over all view, we find that the income taken at Rs.13,856/- reflects a fair figure and we cannot go into these minuet details of his income more so, when the deceased had died even before he could take up the employment. Hence, we do not see any merit in this appeal. This Civil Miscellaneous Appeal therefore, fails and it is accordingly, dismissed. No costs. Consequently, connected miscellaneous petition is closed.
The court established that future prospects and standardized deductions for personal expenses must be applied in calculating compensation for wrongful death.
The court has the authority to enhance compensation if it deems the awarded amount to be inadequate based on the circumstances of the case.
The court's decision emphasized the calculation of compensation based on the deceased's income, future prospects, and dependency, and the responsibility of the respondents to deposit the enhanced amo....
The main legal point established in the judgment is the importance of documentary evidence in determining compensation for motor accident claims, and the application of future prospects and personal ....
The court reinforced the principle that reliable income evidence is crucial in determining compensation for loss of dependency in motor vehicle accident claims.
The deduction of amounts from the deceased's income for the purpose of calculating compensation should be just and reasonable, taking into consideration the benefits to the deceased's family members.
The main legal point established in the judgment is the determination of appropriate compensation for the death of a minor in a road accident, considering factors such as monthly income, future prosp....
The main legal point established in the judgment is the determination of compensation under the Motor Vehicles Act based on the deceased's profession, age, and various aspects such as loss of depende....
The main legal point established in the judgment is the application of recent judgments and legal principles in re-calculating the compensation payable under different heads in motor vehicle accident....
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