ORIENTAL FIRE AND GENL. INS. Vs. BULI DEI

JUDGEMENT

(1.) IN this appeal under Section 110-D of the Motor Vehicles Act, 1939 (hereinafter referred to as the 'Old Act') the Oriental Fire and General Insurance Company Limited (hereinafter referred to as the 'insurer') calls in question the legality of the award passed by the Second Motor Accident Claims Tribunal, Cuttack (hereinafter referred to as the 'Tribunal').

(2.) THE dependents of one Shyam Sundar Das, who lost his life in an accident caused by a truck bearing registration No. OSC 2991 belonging to Anjana Pradhan (hereinafter referred to as the 'insured') lodged a claim for Rs. 95,000/-. The deceased was a grocer and according to the Tribunal was about 37 years old at the time of death. The Tribunal on assessment of evidence came to hold that the monthly loss of dependency was Rs.400/ and applying a sixteen times'multiplier to the annual loss of dependency, calculated the compensation at Rs. 76,000/-. Costs of Rs. 1,000/- was awarded. It was stipulated that the compensation, cost and interest at the rate of 6% from the date of claim, i.e., 9-7-1984 on the compensation was to be paid within three months excluding the period required for securing the copy of the award. It was directed that in the event of failure to pay the awarded amount within the stipulated period, the interest at the rate of 12% per annum was payable from the date of claim till realisation.

(3.) THE term 'compensation' etymologically suggests the image of balancing one thing against other, its primary signification is equivalence. It is an extremely difficult task to assess just compensation. Various factors have relevance while assessing compensation. The term signifies that which is given in recompense, an equivalent rendered. "Compensation" is distinguishable from "damage". Latter constitutes the sum of money claimed or adjudged to be paid in compensation for loss or injury sustained, the value estimated in money of something lost or withheld. No uniform or absolute rule can be laid down, for determination of compensation. Where multiplier system method is applied multiplier has to be selected bearing in mind the facts and circumstances of the case. In Municipal Corporation of Delhi v. Subhagwanti, a multiplier of 15 times was applied for a deceased aged about 30 years. For a deceased aged about 30 years, 16 times' multiplier was held to be reasonable in The Branch Manager, The Oriental Fire and General Insurance Co. Ltd. v. LaxmiPatra and Ors.