NATIONAL INSURANCE CO LTD Vs. SHEELA

JUDGEMENT

(1.) THE Insurance Company is on appeal challenging the quantum of the amount awarded by the Tribunal to the tune of Rs.8,00,000/-.

(2.) IT is seen that on 4.4.2004 at about 21.30 hours, the deceased Rajendran was going in a moped from west to east in Tirupur to Kangeyam road. In front of Maris Motors, Palla Kattu pudur, Tirupur on the left side of the road, the van belonging to the fifth respondent herein, driven by its driver in a rash and negligent manner from west to east and without adhering the traffic regulations, dashed against the deceased Rajendran. Due to the injuries suffered in the accident, the moped rider Rajendran died. The deceased was 42 years old at the time of the accident. IT is seen from Ex.P7 that the deceased was earning a sum of Rs.6200/- per month. After deducting 1/3rd towards his personal expenses, the Tribunal fixed the contribution at Rs.48,000/-. Applying the multiplier 15, the Tribunal arrived at a figure of Rs.7,20,000/- towards pecuniary loss. Apart from that, the Tribunal also granted a sum of Rs.30,000/- for the loss of consortium, a sum of Rs.60,000/- for the loss of love and affection to the minor children, a sum of Rs.10,000/- for loss of love and affection to the mother, a sum of Rs.5000/- for funeral expenses and a sum of Rs.1500/- towards transportation. In toto, a sum of Rs.8,26,500/- was awarded by the Tribunal. However, the Tribunal restricted the compensation to the tune of Rs.8,00,000/-. The Tribunal granted interest at the rate of 7.5% per annum. The Tribunal also directed the appellant herein atleast to deposit 50% of the award amount within a period of two months from the date of the award, failing which, the interest rate of 7.5% per annum shall be calculated at 10.5% per annum.

(3.) HOWEVER, as regards the default clause carrying on interest at the rate of 10.5% per annum stands set aside following the decision reported in 2008 ACJ 2041 - DHARMPAL & ORS. v. U.P. STATE ROAD TRANSPORT CORPORATION, the same merits to be set aside.