IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SUBBIAH, SATHI KUMAR SUKUMARA KURUP, JJ.
M/s. Reliance General Insurance Co. Ltd. - Appellant
Versus
A. Senthilkumar, S/o. Late Arumuga Gounder & Ors. - Respondents
C.M.A. Nos. 1800 of 2019 and 2314 of 2018 and C.M.P. No. 5843 of 2019
Decided On : 26-03-2021
Insurance Company - Motor Accident Claims Tribunal - M.C.O.P. No. 101 of 2012 - Summary of Acts and Sections: The court discussed the Motor Vehicles Act, 1988 and the principles of compensation for loss of dependency and future prospects. The court also referred to the decision of the Division Bench of the Court in Jeya Kannan and others vs. Divya Impex and others reported in 2017 (1) TN MAC 500 (DB) and Managing Director, Metropolitan Transport Corporation Ltd. vs. S. Mariam Beeve 2014 ACJ 2693. The court emphasized the proper determination of notional income and future prospects for deceased individuals pursuing professional degrees.
Fact of the Case:
The claimants filed a petition for compensation after the death of the deceased in a motor accident. The Tribunal awarded compensation, which was challenged by both the Insurance Company and the claimants. The main contention was the proper determination of compensation considering the deceased's future prospects and notional income.
Finding of the Court:
The court found that the Tribunal's award was excessive and enhanced the compensation amount payable to the claimants. The court emphasized the proper determination of notional income and future prospects for deceased individuals pursuing professional degrees.
Issues: The main issues were the proper determination of compensation considering the deceased's future prospects and notional income.
Ratio Decidendi: The court held that the employability of the deceased after completion of the Engineering Degree was not imminent, and the fixation of notional income and future prospects needed to be re-evaluated. The court emphasized that individuals pursuing professional degrees should be treated alike in the determination of compensation.
Final Decision: C.M.A. No. 1800 of 2019 filed by the Insurance Company was dismissed, and C.M.A. No. 2314 of 2018 filed by the claimants was partly allowed. The total compensation awarded by the Tribunal was enhanced to Rs.28,87,700/- together with interest at the rate of 7.5% per annum from the date of the petition till the date of deposit.
JUDGMENT :
Sathi Kumar Sukumara Kurup, J.
C.M.A. No. 1800 of 2019 is filed by the appellant/Insurance Company against the award dated 20.03.2018 in M.C.O.P. No. 101 of 2012 on the file of the Motor Accidents Claims Tribunal, Sub Court, Pollachi.
2. C.M.A. No. 2314 of 2018 is filed by the claimants against the very same award dated 20.03.2018 in M.C.O.P. No. 101 of 2012 on the file of the Motor Accidents Claims Tribunal, Sub Court, Pollachi, for enhancement of compensation.
3. Since both the appeals arise out of the same accident and award, they are taken up together and disposed of by this common judgment.
4. The parties are referred to as per their rank in the claim petition for the sake of convenience.
5. According to the claimants, on 19.06.2009, the deceased S.Harihara Sudhan, along with his friends, were travelling in Innova 2.5G Car bearing Registration No.AP-09-BQ-0250, to participate in a marriage party. The car belong to the 4th respondent and driven by the 3rd respondent during night time on 19.06.2009. After attending the party, on 20.06.2009, at 4.00 a.m., they were proceeding towards Ohris Hotel, in Road No.12, Banjara Hills, Hyderabad. On reaching a place called Kaman in Road No.12, Banjara Hills, the said Innova car was driven by the 3rd respondent in a rash and negligent manner. In the curved area, the 3rd respondent could not control the car, and dashed against an Electric pole which is situated in front of Audi car show room. In the impact, the car once again dashed against Road Divider, as a result of which, the car over turned on western side of the road and came to a halt. In the accident, the deceased sustained fatal injuries and died on the spot.
6. In connection with the aforesaid accident on 19.06.2009, which resulted in the death of the deceased, the claimants filed a claim petition in M.C.O.P. No. 101 of 2012 on the file of the Motor Accidents Claims Tribunal, Sub Court, Pollachi, claiming a sum of Rs.50,00,000/- as compensation.
7. On behalf of the appellant/Insurance Company, a counter statement has been filed before the Tribunal contending inter alia that the age, income and occupation of the deceased as stated by the respondents 1 and 2 in the claim petition are required to be proved by the claimants by acceptable evidence. The Insurance Company, therefore, prayed for dismissal of the claim petition.
8. Before the Tribunal, the 1st respondent/father of the deceased examined himself as P.W.1 and one Mr. Pranavsingaar was examined as P.W.2, and Exs.P1 to P18 were marked. On the side of the appellant/Insurance Company, neither oral nor documentary evidence has been adduced.
9. The Tribunal considering the pleadings, oral and documentary evidence, held that the accident took place due to the rash and negligent driving by the driver of the Innova Car belonging 4th respondent and directed the appellant appellant/Insurance Company to pay a sum of Rs.20,70,100/- as compensation to the respondents 1 and 2/claimants.
10. As against the award passed by the Tribunal both these appeals are filed by the Insurance Company as well as the claimants.
11. Thiru S. Arun Kumar, the learned counsel appearing for the appellant/Insurance Company submitted the amount awarded by the Tribunal is extremely on the higher side. The Tribunal awarded Rs.20,70,100/- for the death of the deceased in the fatal accident without considering the oral and documentary evidence filed by the claimant. The deceased was a student pursuing Engineering College and he is a non-earning member. The Tribunal also did not take note of the fact that the employability of the deceased, even after he completes Engineering Decree is not imminent and therefore also, the fixation of the amount of Rs.19,44,000/- towards loss of dependency and awarding 50% towards future prospects are liable to be interfered with by this Court.
12. The learned counsel for the resp
Proper determination of notional income and future prospects for deceased individuals pursuing professional degrees.
The court emphasized the power of the courts to grant just compensation, more than the amount claimed by the claimants, and the consideration of the deceased's qualifications and future prospects in ....
The court considered the actual salary and future prospects of the deceased to calculate the compensation amount, leading to an enhancement of the awarded sum.
The Court considered the deceased's qualifications, age, and future prospects to determine the notional income and enhance the compensation accordingly.
Courts must assess compensation for accident victims based on realistic evaluation of their potential earnings and educational background, rather than just minimum wage standards.
(1) Death in motor accident – Objective of awarding compensation is to ensure “just and reasonable compensation” to victim or dependants of deceased.(2) Notional income of engineering student cannot ....
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