ORIENTAL INSURANCE CO LTD Vs. BARE LAL

JUDGEMENT

(1.) THIS appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the appellant insurance company against the award dated 12. 1. 1996 of the Motor Accidents Claims Tribunal, Umaria, Distt. Shahdol.

(2.) BARE facts necessary for decision of this appeal are as follows: The deceased Raju aged 16 years who was employed as a labourer for the work of loading and unloading on truck No. MPL 3232 met with a motor accident and lost his life on 22. 3. 1988. The Claims Tribunal awarded a total sum of Rs. 2,20,608/- as compensation to the claimant-respondent No. 1 who is father of the deceased. The above quantum of compensation was on the basis that the deceased was earning Rs. 16/-per day and would have lived minimum for another 44 years. Multiplying the estimated yearly income by 44, the above amount of compensation has been determined as payable jointly and severally by the owner, driver and insurance company.

(3.) MR. B. D. Jain, learned Counsel who appeared for the insurance company, questioned the correctness of the quantum of compensation determined by the Claims Tribunal and argued that it is per se excessive and against settled principles. It is submitted that a multiplier of 44 taken is too high when the maximum multiplier which has been applied by courts is 16. No doubt, the quantum of compensation determined by taking multiplier of 44 appears to this Court as extremely high and against the settled formula of working out the compensation. This court, however, cannot go into the question of quantum of compensation in an appeal preferred by the insurance company because the defences of the insurance company are limited by the provisions of the Act. Two Division Benches of this Court have taken the view that as the defences of insurance company are restricted before the Claims Tribunal, such restrictions with regard to it would also apply to the rights of the insurance company in appeal. [see: United India Insurance Co. Ltd. v. Pratibha Rathi 1995 ACJ 819 (MP) and National Insurance Co. Ltd. v. Kamarjahan 1995 ACJ 1150 (MP)].