UNITED INDIA INSURANCE COMPANY LIMITED Vs. JESSY MATHEW

JUDGEMENT

(1.) THE insurance company and the claimant in O.P. (M.V.) No. 314 of 2005 before the Motor Accidents Claims Tribunal Muvattupuzha are before us challenging the quantum of compensation awarded by the Tribunal for the death of Jose P. Varghese who died in a motor accident on 1 -1 -2005 on account of negligent driving of the vehicle insured with the appellant.

(2.) THE deceased was 47 years old at the time of death.He was working as a Clerk in Federal Bank. His widow, three children and father who are the respondents herein, filed the claim before the Tribunal. The Tribunal found that the father is not entitled to claim compensation. The wife and three children are the respondents herein. The Tribunal awarded a total amount of Rs.17,56,970/ - as compensation to the respondents in which the amount computed at compensation for loss of dependancy is Rs.16,84,717/ -. The compensation for loss of dependancy is the bone of contention in this appeal, between the insurance company and the claimants. The insurance company would contend that after accepting Ext.A8 salary certificate showing monthly salary of Rs.18,668/ - the Tribunal added to Rs.1581/ - per month, stated to be the contribution to the Contributory Provident Fund Scheme of the Bank. According to the insurance company that amount forms part of his salary and therefore, the same could not have again be added to his salary for the purpose of determining his monthly income. It is also submitted that taking into account of the House Rent Allowance and Conveyance Allowance as part of the salary was unsustainable.

(3.) APART from that the claimants would contend that the Tribunal went against the decision of the Supreme Court in Sarla Verma v. Delhi Transport Corporation (2010 (2) KLT 802 (SC)) while fixing compensation, insofar as as held in the said decision 30% of the salary has not been added for future prospects of the deceased. It is also submitted that the Tribunal has deducted 1/3rd for personal expenses from the salary of the deceased which is unsustainable since the family consists of four dependants and the Supreme Court has held that when there are four dependants only