SADHNA NAGPAL Vs. LIC OF INDIA

JUDGEMENT

(1.) The appeal in FAO No.3863 of 2008 is for the enhancement of claim for compensation and the appeal in FAO No.2807 of 2008 is on the issue of entitlement to indemnity from the insurer arising out of the same accident. The Tribunal had merely awarded a compensation under "no fault basis". It is a case where the deceased was a passenger in the car that belonged to the Life Insurance Corporation. The vehicle was driven by an employee of the Insurance Corporation to whom the vehicle had been given on license in consideration of his employment and the agreement produced before Court showed the Life Insurance Corporation as the registered owner having purchased the vehicle for use of the same by its employee as a term of service. The claimants' contention was that the vehicle ran over a traffic divider and turned turtle resulting in the death of the driver and the another passenger. The accident was spoken by a person claiming to be a fellow traveller in the same vehicle. His presence in the vehicle was doubted, since it was elicited that he was travelling in another vehicle and a false case was alleged to have been introduced by the appellant. The fact of the accident itself was not in doubt nor was the involvement of the vehicle ever in doubt.

(2.) Learned counsel appearing for the Insurance Company would contend that even the ownership of the vehicle is with the Life Insurance Corporation cannot be easily interfered by virtue of the agreement which the Life Insurance Company had with the driver of the car Vijay Kumar, who was also an employee of the Life Insurance Corporation. The agreement clearly spelt out in a term that the Life Insurance Corporation was the registered owner and the consideration had also been paid only by the Life Insurance Corporation for the purchase of the car. I have no doubt, in my mind, that the vehicle was owned only by Life Insurance Corporation and it had been given to its employee for his use. Learned counsel wanted to make an issue out of the fact that admittedly the deceased and the driver of the car were proceeding to Delhi for some personal work and if it had been an official car, he could not use the car for his personal use. It is completely a different matter whether such user was permitted. So long as the vehicle remained with the ownership of Life Insurance Corporation and it was also insured with the Insurance Company, the liability of the insured for consequences of the accident cannot be doubted. Moreso, I have seen the terms of the policy which is a package policy and covers expressly a risk to any person travelling in the said vehicle. The claim by the claimants will have to be satisfied by the Insurance Company and the Insurance Company is entitled full indemnity thereof.

(3.) As regards the quantum of compensation to be determined, the deceased was 48 years of age and drawing a salary at Rs. 14,369/-. He was working as Secretary with Municipal Committee, Nilokheri, District Karnal and since he had a security of tenure of service with prospect of increase in salary, I make a provision of 30% increase in salary in the manner suggested by the Supreme Court in "Sarla Verma v. Delhi Transport Corporation, 2009 6 SCC 121". If a provision for deduction of tax at 10% is also to made, the average income after tax will be Rs. 16,812.70 p.m. I will make a deduction of 1/4th for personal expenses of the deceased and adopt a multiplier of 13. The loss of dependency will be Rs. 19,67,850.90. I will make further an addition of Rs. 5,000/- towards the loss of consortium to the wife and provide another Rs. 5,000/- towards the loss of love and affection for the minor child and adding a further sum of Rs. 5,000/- towards funeral expenses and Rs. 5,000/- for loss to estate, the total compensation will be Rs. 19,87,850/-, rounded off to an amount of Rs. 19,87,900/-. The amount shall be distributed amongst the widow, children and the mother in the ratio of 2: 2: 2: 2: 1. The accident has taken place in the year 2006 and since I have adopted adopted a multiplier of 13, I will allow for withdrawal of 60% of the amount to the widow and major children and the remaining amount shall be deposited in a Nationalized bank for a period of 5 years split in five equal shares. The first share shall be for a period of one year and the second for a period of two years and so on upto five years. As regards the minor's share, the same shall be deposited in a Nationalized bank and the mother shall be entitled to withdraw the interest once in a quarter towards the maintenance of the child.