Jammu & Kashmir High Court
Oriental Insurance Co. Ltd. vs Shamsher Singh And Ors. on 16 December, 2002
Equivalent citations: I(2004)ACC209
JUDGMENT T.S. Doabia, J.
1. Contribution of a housewife is seldom recognised. Her contribution to the family is taken for granted. A housewife renders service to children; relations of the husband and depending upon the geographical region in which she is brought up, she has to work and raise financial resources. Unmindful of her personal comforts, she toils in the house and toils in the fields. As the services rendered by her are gratuitous, therefore, the appellant Insurance Company submits that these are of no consequence for determining the quantum of dependency when she suffers an injury or when she suffers a fatal injury and when claims are made by the husband or by other heirs. Fortunately the judicial precedents have to a great extent taken care of this aspect.
2. The issues involved in these two appeals are common and are being disposed of by this common judgment.
3. One Reeta Chib, who was a housewife met with a fatal accident. Her husband and minor daughter filed a claim petition. Motor Accident Claims Tribunal, Jammu allowed compensation. The income of the deceased was found to be around Rs. 2,000/- per month. The contribution to the family was assessed at Rs. 1,200/- p.m. The annual dependency was fixed at Rs. 14,400/-. The multiplier of '15' was applied. In this manner the compensation which was assessed was Rs. 2,16,000/-. The other conventional amounts such as Rs. 2,000/- as the funeral expenses; Rs. 2,500/- as loss to the estate; Rs. 5,000/- as the loss of consortium; and Rs. 10,000/- as loss of expectation of life have also been allowed. After adding these figures the total amount of compensation awarded was for Rs. 2,35,500/-.
4. Two appeals have been preferred. One has been filed by the Insurance Company and other is in the nature of cross-appeal. The claimants seek enhancement of the compensation.
5. Learned Counsel for the Insurance Company submits that there was no evidence available on the record which could justify a conclusion that the deceased was having an income of Rs. 2,000/-. It is accordingly submitted that the view expressed by the Motor Accident Claims Tribunal is based on conjectures and cannot be sustained. This argument put across on behalf of the Insurance Company cannot be sustained. To say that a lady who is working as a housewife is not making any monthly contribution to the family is an argument which cannot be accepted. The value of the domestic services which are rendered by a maid servant engaged for the entire day, if taken into consideration, then what has been allowed by the Tribunal cannot be said to be on the higher side. If a maid servant is to be engaged, then she would be charging atleast Rs. 1,000/- p.m. If she is working for the entire day then she is supposed to be provided meals and some other facilities would also be provided.
6. In Kemp and Kemp on Quantum of Damages, Vol. I, various heads of pecuniary loss for the husband on the death of his wife have been listed out. Included there is the loss of the wife's contribution to the household from her earnings, the additional expenses incurred or likely to be incurred by having the household run by a house-keeper or servant, instead of the wife, the expenses of buying clothes for the children instead of having them made by the wife, and similarly having his own clothes mended or stitched elsewhere than by his wife, and the loss of that element of security provided to the husband where his employment was insecure or his health was bad and where the wife could go out and work for a living.
In Shakuntala Devi v. Delhi Transport Corporation , the Court said:
It is also pertinent to bear in mind that there is no retirement age for a housewife. She works in a house for as long as she is physically capable of doing so. Considered in this light, it is to be assumed that Shanti Devi would have continued to provide such services to her husband and children for many more years to come. Her young age as also that of the claimants must reflect upon the quantum of compensation payable to them.
7. It would be relevant to refer to the decision of Andhra Pradesh High Court in A. Rajam v. M. Manikya Reddy 1989 ACJ 542 in which M. Jagannadha Rao, J. as he then was, summarised the position in para 12. After taking note of certain decisions on the subject:
(12) From the aforesaid rulings, the following principles can be summarised:
(1) The loss to the husband and children consequent upon the death of the housewife or mother has to be computed by estimating the loss of 'services' to the family, if there was reasonable prospect of such services being rendered freely in the future but for the death. It must be remembered that any substitute to be so employed is not likely to be as economical as the housewife. Apart from the value of obtaining substituted services, the expenses of giving accommodation or food to the substitute must also be computed. From this total must be deducted the expense the family would have otherwise been spending for the deceased housewife.
(2) While estimating the 'services' of the housewife, a narrow meaning should not be given to the meaning of the word 'services' but should be construed broadly and one has to take into account the loss of constant 'love and affection' as also of 'personal care and attention' by the deceased to her children, as a mother and to her husband, as a wife. The award is not diminished merely because some close relation like a grand-mother is prepared to render voluntary services.
(3) In case the husband is compelled to give up his job to attend constantly to the children who are extremely sickly, the loss of the husband's job can also be treated as loss to the family. If the deceased was contributing from her earnings to the family, that should also be treated as loss.
(4) If the wife was totally living away and there were no chances of reconciliation, the loss of services cannot be treated as a loss. But if there were reasonable chances of reconciliation, 50 per cent of the loss of services could be awarded.
(5) In the case of an injured housewife, the award from the date of trial on the above basis of 'loss of services' has to be made irrespective of whether she is in fact, going to employ a substitute or not. Even for the period before trial, if she had not engaged a substitute, the award need not be diminished because the extra burden she had borne could be considered as part of the award for the 'pain and suffering' and the said burden could be treated as equivalent to that of engaging a substitute.
8. The Supreme Court of India in the case of Lata Wadhwa v. State of Bihar , has indicated certain parameters as to how compensation in the case of housewife is to be determined. In the above case the value of services rendered by the housewife was taken at Rs. 12,000/- per annum and in some cases Rs. 10,000/- per annum. It was observed that the modest estimation to these cases should be Rs. 3,000/- p.m. and Rs. 36,000/ - per annum. This would apply to all those housewives who are between the age group of 34 and 59. What is said in para 10 is reproduced below:
10. So far as the deceased housewives are concerned, in the absence of any data and as the housewives were not earning any income, attempt has been made to determine the compensation, on the basis of services rendered by them to the house. On the basis of the age group of the housewives, appropriate multiplier has been applied, but the estimation of the value of services rendered to the house by the housewives, which has been arrived at Rs. 12,000/- per annum in cases of some and Rs. 10,000/- for others, appears to us to be grossly low. It is true that the claimants, who ought to have given data for determination of compensation, did not assist in any manner by providing the date for estimating the value of services rendered by such housewives. But even in the absence of such data and taking into consideration the multifarious services rendered by the housewives for managing the entire family, even on a modest estimation, should be Rs. 3,000/- p.m. and Rs. 36,000/-. per annum. This would apply to all those housewives between the age group of 34 and 59 and as such who were active in life. The compensation awarded, therefore, should be re-calculated, taking the value of services rendered per annum to be Rs. 36,000/- and thereafter applying the multiplier, as has been applied already and so far as the conventional amount is concerned, the same should be Rs. 50,000/-instead of Rs. 25,000/- given under the report. So far as the elderly ladies are concerned, in the age group of 62 to 72, the value of services rendered has been taken at Rs. 10,000/- per annum, and the multiplier applied is eight. Though, the multiplier applied is correct, but the value of services rendered at Rs. 10,000/- per annum, cannot be held to be just and we, therefore, enhance the same at Rs. 20,000/- per annum. In their case, therefore, total amount of compensation should be re-determined, taking the value of services rendered at Rs. 20, 000/- per annum and then after applying the multiplier, as already applied and thereafter adding to Rs. 50,000/- towards the conventional figure.
9. As indicated above, in the present case the Tribunal has concluded that the income of the deceased, a housewife, should be Rs. 2,000/- per month. It is on this basis, further calculations have been made. Rs. 800/- is the amount which has been excluded as the personal expenses of the deceased. It was on Rs. 1,200/- the annual dependency was calculated. A multiplier of 15 was applied and compensation was assessed accordingly. As indicated above, the Insurance Company as also the claimants challenged this amount of compensation. A perusal of the judgment of the Apex Court given in Lata Wadhwa's case (supra) brings out-
(i) the modest estimation of service rendered by a housewife where there is no proof of income, should be Rs. 3,000/- per month, and this would apply to all those housewives who are between the age group of 34 and 59 years;
(ii) that the annual value of services rendered should be Rs. 36,000/-;
(iii) suitable multiplier has to be applied on the above figure.
10. When the view expressed by the Supreme Court of India is taken note of, then the annual dependency has to be fixed at Rs. 36,000/-. This was supposed to be made applicable to all those who were in the age group of 34 to 59 years. The deceased was> in this case, 24 years of age. She would be much more active than the ones who are in the age group of 34 to 59 years. Therefore, this figure is taken note of and a multiplier of 15 as applied by the Tribunal, is being applied. The awarded amount would, accordingly, be Rs. 3,000/- x 12, i.e., Rs. 36,000/- and to this a multiplier of 15 is being applied. The amount comes to Rs. 5,40,000/-. The other conventional amounts which have been awarded by the Tribunal would stand as they are. The total amount of compensation would be Rs. 5,59,000/-, i.e., the round figure of Rs. 5,60,000/-. On this enhanced amount the claimants would be entitled to interest at the rate of 9 per cent. The share of the two claimants would be the sum as determined by the Claims Tribunal. The amount which becomes payable to the minor shall remain deposited in a fixed deposit account and she would get the same on attaining the age of 21 years. The awarded amount, if not already deposited, be now deposited with the Registrar (Judicial) of this Court. Out of the amount so deposited, 20 per cent would be deposited in fixed deposit receipt initially for a period of six months. Remaining 80 per cent amount be kept in fixed deposit receipt(s) valid for three years. On this amount, the claimants would be entitled to interest earned on every quarter. The amount would be deposited with the State Bank of India, Gandhi Nagar Branch, Jammu. In case the amount is not deposited within two months from today, then the rate of interest on the amount to be deposited, would be 3 per cent over and above the interest allowed by the Tribunal.
Disposed of as such.