IFFCO TOKIO GENERAL INSURANCE CO. LTD Vs. SAKIL

JUDGEMENT

(1.) EXEMPTION allowed, subject to all just exceptions. The Application is allowed. By virtue of this Appeal, the Appellant IFFCO Tokio General Insurance Company Ltd. disputes its liability to pay the compensation of Rs.7,87,500/- awarded in favour of the Respondents No.1 and 2 for the death of Javed who died in a motor vehicle accident which took place on 17.07.2011.

(2.) DURING inquiry before the Claims Tribunal it was proved that the deceased Javed, who was a bachelor, was getting a salary of Rs.8,500/- per month. The Claims Tribunal deducted 50% towards personal and living expenses and applied the multiplier of Rs.14' according to the age of deceased's mother to compute the loss of dependency as Rs.7,14,000/-. After adding a sum of Rs.10,000/- towards loss to estate, Rs.25,000/- towards love and Affection and Rs.38,500/- as funeral expenses, the overall compensation of Rs.7,87,500/- was awarded.

(3.) AGAIN in United India Insurance Company Ltd. v. Lehru and Ors., (2003) 3 SCC 338, in para 18 of the report the Supreme Court referred to the decision in Skandia, Sohan Lal Passi and Kamla and held that even where it is proved that there was a conscious or willful breach as provided under Section 149(2)(a) (ii) of the Motor Vehicle Act, the Insurance Company would still remain liable to the innocent third party but may recover the compensation paid from the insured. The relevant portion of the report is extracted hereunder: