NEW INDIA ASSURANCE COMPANY LIMITED Vs. JYOTI

JUDGEMENT

(1.) The instant appeal under Sec. 173 of the Motor Vehicles Act, 1988 has been preferred by the insurer of the offending Maruti Eco car No. UP-25DC-5093 against the impugned judgment and award dtd. 8/8/2025 passed by the Motor Accident Claims Tribunal, Rampur in Motor Accident Claim Petition No. 57 of 2023 (Smt. Jyoti and others v. Mahesh Pal and others), whereby for the untimely death of Sanjeev Kumar on 18/1/2023 in a motor accident that occurred on 15/1/2023, a compensation of Rs.23,98,774.00along with interest @ 7% per annum has been awarded to claimants, which is ordered to be indemnified by the appellant - insurance company.

(2.) The factual matrix of the case is that on 15/1/2023 at about 6:00 p.m., on the Milak-Bilaspur Road in village Tiraha, within the jurisdiction of Police Station Milak, District Rampur, the deceased Sanjeev Kumar was driving his motorcycle bearing registration number U.P.-22-AH-0850 from village Dandia towards Milak after delivering goods, then the offending Maruti Eco Car No. UP-25-DC-5093, which was driven in a rash and negligent manner by its driver, came from behind and hit the motorcycle as a result of which the deceased sustained grievous injuries, who was admitted in Navodaya Hospital, Bareilly from 15/1/2023 to 18/1/2023 and during treatment, he died on 18/1/2023. At the time of his death, the deceased was aged about 27 years, who was working as a delivery boy in Ekam Express Company and was drawing a salary of Rs.11,000.00 per month. The Tribunal has assessed his income on the basis of minimum wages paid to unskilled workman for the relevant time, which was Rs.9,743.00 per month which comes to Rs.1,16,916.00 annually. Since the deceased was below 40 years of age, the Tribunal has awarded 40% future prospects. Since, there were four dependents, the Tribunal has deducted 1/4th amount towards self-expenses, applied multiplier of 17 and has awarded Rs.16,500.00 each towards funeral expenses and loss of estate and has granted consortium of Rs.40,000.00 each to the widow, two minor sons and mother of deceased and Rs.1,18,820.00 towards treatment expenses. In this way, the Tribunal has awarded a total compensation of Rs.23,98,774.00 along with interest @ 7% per annum to the claimants, aggrieved against which, the Insurance Company has filed this appeal.

(3.) Learned counsel for the appellant-Insurance Company has submitted that the Tribunal has erred in concluding that there were four dependents of the deceased. Learned counsel submitted that minor dependents of the deceased should be taken as half unit each but the Tribunal has erred in taking them as a single unit. It was further submitted that the Tribunal has awarded consortium of Rs.40,000.00 each to every claimant, which is erroneous, keeping in view the judgment of the Apex Court in the case of National Insurance Company Limited v. Pranay Sethi and others 2017 (125) ALR 856 (SC).