IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
N. TUKARAMJI, J.
United India Insurance Co. Ltd. - Petitioner
Versus
Siramoni Kistaiah and Others - Respondents
MACMA No. 83 of 2013
Decided On : 08-07-2022
Compensation - Motor Vehicle Accident - M.V. Act - [National Insurance Company Ltd. vs. Pranay Sethi and others, (2017) 16 SCC 860; Sarla Verma & Ors. Vs Delhi Transport Corp. & Anr., 2013 ACJ 1409; Magma General Insurance Co. Ltd. vs. Nanu Ram & Ors., (2018) 18 SCC 130; United India Insurance Co. Ltd. vs. Satinder Kaur @ Satwinder Kaur and others, Civil Appeal No.2705 of 2020; Surekha and others Vs. Santosh and others, 2020 ACJ 2156] - The court discussed the computation of loss of dependency, future prospects of income, conventional heads of compensation, and the interpretation of 'consortium' in the context of filial consortium. The legal provisions from the M.V. Act and relevant case laws influenced the court's decision in awarding just compensation to the claim petitioners.
Fact of the Case:
The deceased was involved in a motor vehicle accident, and the claim petitioners sought compensation for loss of dependency. The insurer disputed the quantum of compensation awarded by the Tribunal.
Finding of the Court:
The court affirmed the Tribunal's finding on the deceased's monthly income and applied legal principles from relevant case laws to compute the loss of dependency and award compensation under various heads. The court also emphasized the statutory duty under Section 168 of the M.V. Act in awarding just compensation.
Issues: Dispute over the quantum of compensation awarded by the Tribunal, consideration of the deceased's income, and the entitlement of the claim petitioners to just compensation.
Ratio Decidendi: The court relied on the evidence of the deceased's income, legal provisions from the M.V. Act, and relevant case laws to determine the loss of dependency and award just compensation. The court also highlighted the statutory duty to award higher compensation than claimed under Section 168 of the M.V. Act.
Final Decision: The appeal filed by the insurer was dismissed, and the claim petitioners were awarded compensation of Rs.16,22,000 with interest at 7.5% per annum. The insurer and insured/owner were jointly and severally liable to pay the compensation, and the claim petitioners were permitted to withdraw the entire amount upon deposit by the appellant/insurer and insured/owner.
JUDGMENT :
1. The insurer/2nd respondent disputing the quantum of compensation awarded in the decree and order dated 22.03.2012 in O.P.No.213 of 2009 on the file of the Chairman, Motor Accident Claims Tribunal-cum-Additional District Judge-cum-Special Judge for SC/STs (POA) Act Cases, Nalgonda (for short ‘the Tribunal’), preferred this appeal.
2. The parents of Siramoni Venkataiah/deceased, who died in the motor vehicular accident dated 15.01.2019 filed the petition claiming compensation of Rs.21,00,000/- for the loss of dependency.
3. The case of the petitioners, in brief is that, on 15.01.2009 while Siramoni Venkataiah/deceased along with his friend were proceeding on Hero Honda Passion Plus bearing Registration No.AP-29-F-8925 at Kurmedu gate, one Tractor and Trailor bearing registration No.APNTR, 24-L-9940 came in opposite direction and dashed the motor cycle, as a result, the riders of the motor cycle were slumped and received severe head injuries and died on the spot. The Tribunal, after considering the evidence on record placed by the petitioners held that the accident occurred due to rash and negligent driving of the Tractor and Trailor, thus awarded Rs.9,20,000/- with 7.5% interest as compensation against the owner and insurer/respondents of the Tractor and Trailor/1stand 2nd respondents.
4. In appeal, the 2nd respondent/insurer (hereinafter ‘respondent’), has contended that the Tribunal should have considered that the income of the deceased was not established. That apart, the Income Tax Returns/Exs.A8 and A9 are also not proved. Thus, the Tribunal erred in taking the monthly income of the deceased at Rs.10,000/-. Further, the multiplier applied for computing the compensation and the interest amount awarded are improper. Hence, prayed for reassessment.
5. Learned counsel for the respondents/petitioners (hereinafter ‘the petitioners’) pleaded that though the material evidence is placed on record to prove the income of the deceased, the same was not taken into account by the Tribunal and on lack of advise the petitioners could not file appeal. However, prayed for considering the material and to grant just compensation.
6. I have carefully perused the pleadings of the learned counsel and the material on record.
7. The petitioners pleaded that Siramoni Venkataiah/deceased was aged about 25 years and was earning Rs.3,04,100/- per annum. To substantiate these aspects, the petitioners filed Pan card/Ex.A-6 and Original Warranty Certificate of JCB/Ex.A-7, Income Tax Returns/Ex.A-8, Original challan of income tax/Ex.A-9, copy of Registration Certificate/Ex.A-10. It is their claim that the deceased was earning by working on civil contracts on his JCB Machine and also having agricultural income.
8. Though, the respondent disputed the documents filed by the petitioners, no material aspect for consideration is made out. Further, having regard to fact that the machinery and the agricultural land remains with the petitioners and the entries in the tax returns, the finding of the tribunal as to the monthly income of the deceased at Rs.10,000/- is found reasonable, thus affirmed.
9. The Hon’ble Apex Court in National Insurance Company Ltd. vs. Pranay Sethi and others, (2017) 16 SCC 860. held that in computing the loss of dependency the future prospects of income of a self-employed shall be taken into account. Thus considering the age and occupation of the deceased 40% of the income is added towards future prospects. Further as Siramoni Venkataiah/deceased was bachelor, 50% of the income is deducted towards personal expenses as per the authority of Hon’ble Supreme Court in Sarla Verma & Ors. Vs Delhi Transport Corp. & Anr., 2013 ACJ 1409. Resultantly the annual contribution of the deceased to the petitioners would be Rs.84,000/-. This number if multiplied with the relevant multiplier to the age of the deceased i.e., 18, the total comes to
The main legal point established in the judgment is the application of legal principles from the M.V. Act and relevant case laws to compute loss of dependency and award just compensation, emphasizing....
In fatal motor accident claims, the Court holds that notional income must be applied to determine dependency using a multiplier, and that all immediate family members, including siblings, are entitle....
The court reaffirmed the principles for calculating compensation for loss of dependency, ensuring future income prospects and correct multipliers are applied.
Major children can claim compensation as dependents of a deceased parent, regardless of their financial independence.
Compensation for loss of dependency must reflect actual income, considering documented evidence and legal standards for assessment.
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