ORIENTAL INSURANCE CO. LTD Vs. HASAN RAJA

JUDGEMENT

(1.) THE Appeal is for reduction of compensation of Rs.5,92,936.00 awarded by the Motor Accident Claims Tribunal (the Claims Tribunal) in favour of Respondents No.1 and 2, the parents of the deceased Sayeed Ahmad, who died in a motor vehicle accident which occurred on 06-07.01.2004.

(2.) THERE is twin challenge to the judgment. It is urged that there should have been a deduction of one-third towards personal and living expenses, but the Claims Tribunal did not make any deduction towards personal and living expenses of the deceased. It is stated that in case of death of a bachelor the multiplier has to be as per the age of the deceased. Reliance is placed on Sarla Verma & Ors. v. Delhi Transport Corporation & Anr'., (2009) 6 SCC 121.

(3.) NORMALLY, in the case of death of a bachelor 50% deduction is made towards personal and living expenses, although, the Appellant Insurance Company says that there should have been deduction of one-third towards personal and living expenses. The Minimum Wages of unskilled worker as held by the Claims Tribunal at the relevant time were Rs.2,784.00. If a Claim Petition is filed under Section 163-A of the Motor Vehicles Act,1988 (the Act) and compensation is awarded strictly in accordance with the Second Schedule, the loss of dependency would come to Rs.3,78,624.00(2784 x 2/3 x 12 x 17).