NEW INDIA ASSURANCE CO. LTD. Vs. SAROJINI PELAI

JUDGEMENT

(1.) THE Insurance Company with whom the alleged offending vehicle was insured, was the respondent No. 2 before the Claims Tribunal in M.A.C. No. 23 of 1986 in the Court of the Member, Second Motor Accident Claims Tribunal, Berhampur who being aggrieved by the order of the Tribunal dated 24.4.87 has preferred this miscellaneous appeal.

(2.) THE case of the claimant before the M.A.C.T. was that on 14.2.86 at about 7.45 p.m. while her husband Trinath Pella of village Kumarbegpalli was standing near Bir Hanuman Temple, a truck bearing registration No. ORG 9709 which was coming from the direction of Chhatrapur being driven rashly and negligently, had run over her husband as a result of which her husband died instantaneously at the spot. According to the claimant the deceased who was serving as a watchman and earning a salary of Rs. 900/- per month, was of 35 years of age and was in a good health at the time of his death. He was survived by his widow (claimant), two minor children and his old mother. A sum of Rs. 1,00,000/- was claimed as compensation from the respondent. Respondent No. 1 before the Tribunal is the owner of the vehicle and respondent No. 1 is the insurer.

(3.) THE Tribunal was satisfied that the death was due to rash and negligent driving by the driver of the truck ORG9709, and that the total income of the deceased was Rs. 671/- per month out of which deducting 1/3rd towards the personal expenditure of the deceased, the total amount which come to the hands of the wife for the maintenance of the family was Rs. 5,368/- per annum, Applying a multiplier of 17 years considering the age of the deceased the Tribunal directed the present appellant to pay Rs. 91,256/- to the claimant, her minor children and the old mother of the deceased with 6% interest per annum from the date of application i.e. 4.2.86 till realisation with the consolidated cost of Rs. 400/-. It was further directed by the Tribunal that in case the Insurance Company did not pay the amount to the aforesaid claimants within a period of three months from the date of its order, it shall pay a penal interest @ 12% per annum from the date of application till realisation. It was further directed by the Tribunal that a sum of Rs. 20,000/- shall be deposited as fixed deposit in any branch of the State Bank of India or a Nationalised Bank in the name of each of the minor children of the deceased Manju Pellai and Raju Pellai amounting in all a sum of Rs. 40,000/- for a period of 10 years and the deposit shall be made by Sarojini Pellai as the mother-guardian and these fixed deposits shall be automatically renewed till the minors attained the age of majority. It was further directed that on attaining majority the minors shall be entitled to withdraw the fixed deposits from the Bank and in case of pre-mature death of any of the minor, the amount of that minor shall be paid to the claimant-Sarojini Pellai, the mother-guardian. The Bank was forbidden to allow any loan to be raised treating this money in fixed deposit as security at least for a period of five years. That apart lit was directed that out of the balance amount of Rs. 51,256/-, a sum of Rs. 10,000/- shall also be paid to the old mother of the deceased by name Rukmuna Pellai and the balance amount of Rs. 41,256/- with interest and cost shall be paid to the widow of the deceased.