DIVISIONAL MANAGER NATIONAL Vs. JAYASHREE RATH

JUDGEMENT

(1.) This appeal on behalf of National Insurance Co. Ltd. is directed against the judgment and order of the Third Motor Accidents Claims Tribunal, Puri, by which it has granted a sum of Rs. 7,20,000/ - as compensation in favour of respondent Nos. 1 to 5 who are the legal representatives (widow, son, daughter and parents) of Sanjay Kumar Rath who died in the automobile accident.

(2.) THE case of respondent Nos. 1 to 5 is that Sanjay Kumar Rath was a Mechanical Engineer and was working as Surveyor and Loss Assessor of general insurance companies at the material time. On 27.5.1987, respondent No. 6, P.V.L.N. Swamy, Branch Manager of the Oriental Insurance Co. Ltd., Cuttack (hereinafter referred to as 'Swamy') and A.K. Behera, Development Officer of the Oriental Insurance Co. Ltd., Cuttack, came from Cuttack in the Premier Padmini car No. OAC 5166 belonging to Swamy to the residence of deceased Sanjay at Bhubanes -war and requested him to accompany them to Puri. On being so requested, Sanjay proceeded with them in the said car to Puri. In the same night while these three persons were returning from Puri at about 1 a.m., the car dashed against a concrete pillar standing at the extreme right side of the road. The said accident took place near Talapatna, a place little ahead of Sakhi -gopal on State Highway No. 8 (Puri -Bhubaneswar Road). The dashing of the car against the concrete pillar was so violent that the car went 30 to 40 feet away from the road and fell in a ditch. At that time Swamy was driving the car and Sanjay was sitting in the front seat of the car on the left side. As a result of the severe impact of the offending car with the concrete pillar, the front door opened automatically and Sanjay fell down from the car. The rear wheel of the car ran over the chest and head of Sanjay, who succumbed to the injuries while he was being taken to Capital Hospital, Bhubaneswar. The allegation of respondent Nos. 1 to 5 is that the accident took place due to the rash and negligent driving of the car by Swamy. On the basis of the above allegation, petition for compensation of Rs. 19,26,000/ - was filed on behalf of respondent Nos. 1 to 5. According to them, the deceased was aged about 35 years at the time of accident and his average monthly income was more than Rs. 14,000/ -. He was contributing Rs. 8,000/ - towards his family. He would have lived up to 70 years of age and contributed towards the family a substantial amount for another 35 years.

(3.) THE Motor Accidents Claims Tribunal held that it was Swamy who was driving the car at the time of accident. Sanjay died not due to his own negligence but on account of the injuries sustained by him in the accident caused by Swamy's rash and negligent driving of the car. The Tribunal rejected the plea of the appellant that the deceased being a gratuitous passenger in the offending car, the insurer has no liability to pay any compensation. Regarding quantum of compensation, the Tribunal held that the annual contribution of the deceased towards his family was Rs. 36,000/ - and by applying the multiplier of 20, it assessed the compensation at Rs. 7,20,000/ -.