NEW INDIA ASSURANCE CO LTD Vs. AYYANAR

JUDGEMENT

(1.) The first and second respondents have unfortunately, lost their only son in a road accident that took place on 12.10.2001. At the time of accident, the deceased was studying in 9th standard and he was aged 13 years. The parents claimed Rs.5 lakhs as compensation. The Tribunal awarded Rs.3,72,000/- as compensation based on the decision of the Honourable Supreme Court in Lata Wadhwa and others vs. STate of Bihar and others reported in 2001 ACJ 1735. The appellant Insurance company questions on the quantum of compensation alone.

(2.) The learned counsel for the appellant submits that the judgment relied on by the Tribunal could not be applied to the facts of the present case. It is submitted that the children died in the case was children of the employees of TISCO. They belong to an affluent family. The TISCO had a principle that every employee could get one of their children got employed in the company. In that context, the compensation was awarded in the said case. According to him, Rs.15,000/- is to be taken as annual earnings as provided under the Second Schedule of the Motor Vehicles Act arriving at the pecuniary loss. According to him, the proper multiplier is '15'. After providing one third deduction towards personal expenses, he submits that the appellants are entitled to Rs.1,50,000/- towards pecuniary loss. He also suggests that Rs.75,000/- could be awarded towards non-pecuniary loss. As far as the future prospects is concerned, the learned counsel submits that there is no evidence regarding the capabilities of the children who lost its life. Therefore, he is opposing for granting any amount towards future prospects.

(3.) On the other hand, the learned counsel for the appellants submits that the accident took place in October 2001 and that therefore, the monthly earnings would be at least fixed at Rs.2000/-p.m.,notionally. He relies on the decision of the Honourable Supreme Court in R.K.Mallik and another vs. Kiran Pal and others reported in 2009(1)TNMAC 593(SC),in support of his submission. Taking into account the fact that the accident took place much after 1994, it is submitted that Rs.3000/- has to be taken as the monthly earnings for computing compensation. The learned counsel further submits that at least a sum of Rs.1 lakh could be awarded towards loss of non-pecuniary loss, since, the deceased was the only son. Though no evidence was let in towards educational career of the child, the learned counsel submits that at least a sum of Rs.60,000/- should be awarded towards future prospects.