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2022 Supreme(Online)(Ker) 79783

IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.R.ANITHA, J
SMT.SUNITHA SURESH – Appellant
Versus
BINU ALIAS KUNJU – Respondent
MACA No. 50 of 2011|O.P.(MV) No.29/2009



Advocates:
For the Appellants/Petitioners: SRI.T.J.MICHAEL, SRI.JOSE MATHEW KAVALAKALAM
For the Respondents: GEORGE CHERIAN (SR.), GEORGE A.CHERIAN, ALEXY AUGUSTINE, ADV.LATHA SUSAN CHERIAN - R3

The appropriate multiplier for compensation in fatal accident claims should align with established guidelines, ensuring future income prospects are accounted for, enhancing total awarded compensation.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Compensation claim due to death in an accident caused by negligent driving - The Tribunal awarded Rs.14,28,526/- which the claimants contested for inadequacy in various heads - Proper multiplier for loss of dependency was determined as 14 instead of 11, and 30% enhancement on monthly income towards future prospects was permissible. (Paras 21, 39)

(B) The court held the insurance company liable for indemnity to the registered owner as per their existing policy and the principles laid down in various precedents regarding multiplier application and enhancement on conventional heads. (Paras 18, 39)

Facts of the case:
The deceased, a police constable, died in an accident involving an autorickshaw while traveling on duty. His family sought compensation claiming that the accident was due to the negligent driving of the respondent. (Paras 3, 11)

Findings of Court:
A proper multiplier of 14 was established, leading to an enhanced compensation totaling Rs.13,64,100/- determined to be proper in the context of dependency and conventional heads, and responsibility was fixed on the insurance company. (Paras 41)

Issues: Whether the Tribunal's use of a split multiplier was justifiable and the correct application of the multiplier for compensation based on the age of the deceased. (Paras 14, 15)

Ratio Decidendi: The court emphasized adherence to the Sarala Varma benchmarks for multiplier application and provided a framework for calculating dependency based on full prospects and conventional heads. (Paras 19, 22)

Result: Appeal allowed enhancing compensation to Rs.13,64,100/- which will carry interest @ 6% per annum from the date of petition.

Table of Content
1. facts surrounding the deceased's accident and claim process. (Para 2 , 3)
2. arguments regarding the compensation multiplier and enhancement. (Para 11 , 12 , 21)
3. court's assessment of multiplier application principles. (Para 16 , 19 , 28)
4. determining liability regarding the insurance policy. (Para 20 , 30)
5. final compensation decision and its distribution. (Para 41)

JUDGMENT

This appeal is directed against the Award passed in O.P.(MV) No.29/2009 on the file of Motor Accident Claims Tribunal, Pala.

2. Appellants are the claimants in the above O.P.(MV) and the legal heirs of deceased Suresh Babu. The claim petition has been filed under Section 166 of Motor Vehicles Act, 1988 (in short the Act) claiming a total compensation of Rs.20 lakhs on account of the death of deceased Suresh Babu (hereinafter be referred as the deceased). The 1st appellant is the wife, 2nd appellant is the mother and appellants 3 and 4 are the minor children of the deceased.

3. The incident was on 30.06.2008 at about 4.30 p.m. near Kadaplamattom junction in Kidangoor-Kadaplamattom road, while the deceased was traveling in an autorickshaw bearing Reg.No.KL- 05/M 1403 driven by the 1st respondent. Though, he was taken to Medical College Hospital, Kottayam, he succumbed to injuries on the way to the hospital. It is alleged that the accident occurred due to the rash and negligent driving of the 1st respondent. 2nd respondent is the registered owner of the offending vehicle and 3rd respondent is the insurer.

4. Before the Tribunal, 1st and 2nd respondents remained ex-parte.

5. The 3rd respondent insurer filed written statement denying the insurance coverage with respect to the offending vehicle on the date of accident. Policy with respect to the vehicle for the period from 22.7.2007 to 21.7.2008 is admitted. It is also contended that the vehicle was transferred long before and the present policy was taken in the name of the 2nd respondent by suppressing the facts of transfer, hence, the policy is void abenitio due to suppression of material facts. The accident was not reported to the insurer by the insured and it is a violation of terms of contract of insurance. Appellants/claimants are put to strict proof of the income and occupation of the deceased. It is also contended that the quantum of compensation claimed is very high.

6. RW1 and 2 were examined. Exhibit B1, X1 and X2 were marked from the side of the respondents. Exhibit A1 to A8 were marked from the side of the appellants/claimants (hereinafter be referred as claimants).

7. The Tribunal after evaluating the evidence and materials found that there is violation of conditions of policy and insurance company is entitled to get reimbursement from 1st and 2nd respondents. Claimants were allowed to realise a compensation of Rs.14,28,526/-.

8. In this case, the compensation awarded by the tribunal under various heads are as follows:

Compensation allowed at different headsAmount awarded Rs.
Loss of dependency13,84,526-00
Transportation to Hospital1,000-00
Damage to clothing and articles500-00
Funeral expense7,500-00
Pain and suffering5,000-00
Loss of estate10,000-00
Loss of love and affection10,000-00
Loss of consortium10,000-00
Total14,28,526-00

9. Dissatisfied with the award passed by the Tribunal under various heads, claimants came up in appeal before this Court on various grounds stated in the memorandum of appeal.

10. Though notice was duly served upon 1st and 2nd respondents there was no appearance on behalf of them before this Court. The Standing Counsel appeared on behalf of the 3rd respondent insurance company. Lower court records were called for and perused. Both sides were heard.

11. According to the learned counsel for the claimants, the deceased was a police constable and his income was proved duly through Exhibit A8 the salary certificate. The gross salary was Rs.16,031/- but the Tribunal applied split multiplier by adopting multiplier of 11, though the deceased was 43 years and the proper multip

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