ORIENTAL INSURANCE CO LTD Vs. ANITA DEVI

JUDGEMENT

(1.) THIS appeal preferred by M/s. Oriental "Insurance Co. Ltd. seeks to assail the judgment and award dated 13.01.2010 on the short ground that the amount of compensation allowed by the Claims Tribunal on account of the death of Shri Mohan Mishra (hereinafter referred to as "the deceased") was not in accordance with Section 163-A read with the Second Schedule of the Motor Vehicles Act and the structured formula delineated therein.

(2.) WITH the consent of the parties, the appeal is taken up for final hearing at this stage.

(3.) THE Claims Tribunal after holding that the factum of death of the deceased stood established and also the involvement of truck No.DL-lL-B-1726 and thus the ingredients required for a claim under Section 163-A of the Act stood fulfilled, proceeded to quantify the compensation due and payable to the respondents No.1 to 5/claimants. For the aforesaid purpose, the Claims Tribunal held that recourse to the minimum wages for unskilled workers was required in view of the fact that there was no documentary evidence on record for establishing the income of the deceased who was stated to be Kachori vendor earning a sum of RS.3,300/- per month. Since the minimum wage rate for an unskilled worker on the date of the accident, that is, 24.05.2005, was in the sum of RS.3,165/- per month, the Claims Tribunal assessed the aforesaid sum to be the income of the deceased. Thereafter, applying the principles laid down by the Supreme Court in the case of Smt. Sarla Verma and others v. Delhi Transport Corporation and another2009 (4) SCJ 91 =2009 ACJ 1298 (SC)=(2009) 6 SCC 121, it held that the monthly income of the deceased would have increased by 50% by the end of his working career, that is, by RS.1,582.50, and thus his average monthly income would have totalled a sum of RS.4,747.50. Deducting l/4th therefrom for the personal expenses of the deceased in view of the fact that the deceased had five dependents, the Claims Tribunal assessed the remaining amount of RS.3,560.62 to be the loss of dependency of the claimants per month, that is, RS.42,727.44 per annum. The aforesaid multiplicand was multiplied by 16 and the total loss of dependency was assessed to be in the sum of RS.6,83,639.04, that is, RS.42,727.44 RS.16. In addition, the claimants were held entitled to a sum of RS.10,000/- under the head of loss of estate, RS.10,000/- towards funeral expenses, RS.10,000/- towards loss of consortium and RS.1,00,000/- for loss of love and affection of the deceased. In all, RS.7,64,000/- (i.e. RS.8,13,639.04 - 50,000/- interim award) with interest at the rate of 7.5% per annum from the date of the petition till the date of deposit of the award amount.