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[Cites 7, Cited by 3]

Himachal Pradesh High Court

Shriram General Insurance Company ... vs Kanta Devi And Ors on 18 December, 2018

Author: Tarlok Singh Chauhan

Bench: Tarlok Singh Chauhan

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA FAO (MVA) No.170/2016 Decided on: 18.12.2018  .

Shriram General Insurance Company Limited       ...... Appellant Vs. Kanta Devi and ors.      ..... Respondents Coram The Hon'ble Mr. Justice Tarlok Singh Chauhan, Judge.

Whether approved for reporting?1 No. For the Appellant: Mr. Jagdish Thakur, Advocate.  

For the Respondents: Mr.   H.S.   Rangra,   Advocate,   for respondents No. 1 and 2.

Mr.   Lalit   K.   Sehgal,   Advocate,   for respondents No. 3 and 4. 

Tarlok Singh Chauhan (oral) The Insurance Company has assailed the award dated 14.5.2015   passed   by   the   learned   Motor   Accidents   Claim Tribunal,   Mandi,   in   claim  petition   No.   62/2013   on   the   ground that the same is contrary to the constitution bench judgment of the Hon'ble Supreme Court in National Insurance Co. Ltd. vs. Pranay Sethi and others, 2017(16) SCC 680.

1

Whether the reporters of the local papers may be allowed to see the Judgment? Yes ::: Downloaded on - 21/12/2018 22:55:24 :::HCHP 2 2 The factual matrix of the present case, briefly stated, is as under:­ On 30.1.2013,   the deceased was going   from Gohar .

to Kullu with his friends in Alto Car bearing registration No. HP­ 69A­0670 and when the car reached near Thalout, it struck with the hill due to rash and negligent driving   of   respondent No.4 herein, namely, Jatinder, as a result whereof, the deceased along with other occupants of the car sustained injuries.  The deceased was taken to Zonal Hospital, Mandi, where he succumbed to  his injuries. The matter was reported to the police and an FIR No.11 was lodged against respondent No.4 on 30.1.2013 under Sections 279   and   337   of   the   Indian   Penal   Code   at   Police   Station   Aut, District Mandi.  It was averred that the deceased was healthy and stout and teetotaler. He was aged about 23 years at the time of accident and still bachelor.  It was also averred that the deceased was driver by profession and earning Rs.7,000/­ per month and on   account   of   his   untimely   death,   the   claimants   had   been deprived  not only of his income, but also his love and affection.

Resultantly, the claimants filed   claim petition claiming therein compensation of Rs.20,00,000/­.

3 The owner and driver of the vehicle, respondents No. 3   and   4   herein,   opposed   the   petition   by   filing   reply,   wherein ::: Downloaded on - 21/12/2018 22:55:24 :::HCHP 3 preliminary objections qua maintainability and locus standi were raised. On merits, the averments made in the claim petition were denied.     However,   the   factum   of   death   and   involvement   of   the .

vehicle in the accident was also admitted, but it was  averred that the accident was result of sudden latent defect  in the vehicle and not because of rash and negligent driving of respondent No.4.

4 The   appellant­Insurance   Company   filed   separate reply,   wherein   it   was   averred   that   the   driver   of   the   vehicle   in question was not holding valid and effective driving license and the vehicle was being driven in contravention of the terms and conditions   of   the   Insurance   Policy,   therefore,   the   Insurance Company   was   not   liable   to   indemnify   the   compensation,   as sought.

5 On   10.3.2015,   the   learned   Tribunal   framed   the following issues:

1. Whether the deceased Mohit Kapoor had died in Motor Vehicle   Accident   on   30.1.2013   at   about   6.30   P.M.   at place Thalaut on account of rash and negligent driving of the respondent No.2? OPP
2. If  issue  No.1 is proved  in affirmative, to  what  amount the petitioners are entitled for compensation? OPP
3. Whether   the   respondent   No.3   Insurance   Company   can be held liable to indemnify the award amount?OPR­1 & 2 ::: Downloaded on - 21/12/2018 22:55:24 :::HCHP 4
4. Whether the  vehicle was driver by respondent  No.2 in violation   of   the   terms   and   conditions   of   the   Insurance Policy? OPR­3
5. Whether the respondent No.2 was not having valid and .

effective driving license to drive the vehicle at the time of the accident? OPR­3. 

6. Relief. 

6 After recording the evidence and evaluating the same, the learned Tribunal allowed the claim petition and awarded the compensation  to the claimants as follows:­ Sr.  Head Compensation No. Awarded i. Income Rs.5000/­ ii. Future prospects @ 50% of Rs.2500/­ the income iii. Deduction   of   personal Rs.3750/­ expenses @ 50% iv. Multiplier  18   (   as   per   age   of the deceased) v. Loss of future income Rs.8,10,000/­   (i.e. 3750 x 12 x18) vi. Loss of love and affection Rs.50,000/­ vii. Loss of estate Rs.50,000/­ viii. Funeral expenses Rs.25,000/­ Total compensation Rs.9,35,000/­ along with interest @   9%   per   annum from   the   date   of filing of petition till the   final realization   of   the amount. 

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The   compensation   amount   was   held   to   be   payable jointly and severally by the Insurance Company and the driver and owner of the vehicle. 

.

7 I have heard the learned counsel for the parties and have also gone through the records of the case carefully. 

8 The principal grounds on which the appeal has been filed   by   the   appellant­Insurance   Company   are   that   ­   (i)   the learned Tribunal has, without any basis, erroneously calculated taken the income of the deceased to be Rs.5000/­, whereas at the relevant time, under the Minimum Wages Act monthly income of the   deceased   was   Rs.3600/­;   and   (ii)   the   learned   Tribunal   has erroneously     awarded   50%     of   the   income   towards   the   future prospects   as the same, in terms of  Pranay Sethi's  case, could only   be   40%.   The   grant   of   compensation,   i.e.   Rs.50,0000/­   on account of loss of love and affection, Rs.50,000/­ on account of loss of estate and  Rs.25,000/­ towards funeral expenses is also erroneous and at best only Rs.70,000/­ in lump sum could have been awarded  to the claimants in accordance with the judgment in Pranay Sethi's case.

9 Adverting to the first ground, it would be noticed that the learned Tribunal, without there being any basis and rather only   on   the   basis   of   the   oral   statement     of   the   claimants, ::: Downloaded on - 21/12/2018 22:55:24 :::HCHP 6 determined   the   income   of   the   deceased   to   be   Rs.5000/­   per month,   which,   in   absence     of   there   being   legally   admissible evidence,   could   have   at   best   been   fixed   by   taking   into .

consideration     the   minimum   wages   prevalent   at   the   relevant time,   which   admittedly   in   the   present   case   was   Rs.3600/­  per month (i.e. Rs.120/­ per day). The nature of the employment of the deceased was   "self employed person" and therefore, future prospects   ought   to   have   been   awarded   @   40%   of   the   actual income   of   the   deceased   instead   of     50%   as   awarded   by   the learned Tribunal. 

10 As   regards   the   claimants,   who   are   parents     of   the deceased, in terms of Pranay Sethi's case, they would be entitled to loss of estate @ Rs.15,000/­, loss of consortium @ Rs.40,000/­ and funeral expenses @ Rs.15,000/­ in terms of  Pranay Sethi' s case. 

11 However,   it   needs   to   be   noticed   that   the   Hon'ble Supreme   Court   in  Magma   General   Insurance   Co.   Ltd.   vs. Nanu Ram alias Chuhru Ram and ors. 2018 (11) Scale 247, after considering the judgment in Pranay Sethi's case, considered one   of   the   heads   for   awarding   compensation   i.e.   loss   of consortium and observed as under:

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8.7 A   Constitution   Bench   of   this   Court   in  Pranay Sethi (supra)   dealt   with   the   various   heads   under which compensation is to be awarded in a death case. One of these heads is Loss of Consortium. 

.

In   legal   parlance,   "consortium"   is   a   compendious   term which       encompasses       'spousal       consortium','parental consortium', and 'filial consortium'.

The   right   to   consortium   would   include   the company, care,   help,   comfort,   guidance,   solace   and affection of the deceased, which is a loss to his family. With   respect to   a   spouse,   it   would   include   sexual relations with the deceased spouse.   

Spousal   consortium   is   generally   defined   as   rights pertaining   to   the   relationship   of   a   husband­wife   which allows   compensation   to   the   surviving   spouse   for   loss   of "company,   society, co­operation, affection,  and  aid of the other in every conjugal relation." 

Parental   consortium   is   granted   to   the   child   upon   the premature   death   of   a   parent,   for   loss   of   "parental   aid, protection,   affection,   society,   discipline,   guidance   and training."

Filial   consortium   is   the   right   of   the   parents   to compensation in the case of an accidental death of a child. An     accident     leading     to     the     death     of     a     child causes   great   shock   and   agony   to   the   parents   and family of the deceased. The greatest agony for a parent is to lose their child during their lifetime. Children are valued for   their   love,   affection,   companionship   and their role in the family unit.

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Consortium   is   a   special   prism   reflecting   changing   norms about   the   status   and   worth   of   actual relationships. Modern   jurisdictions   world over   have recognized   that the   value  of   a   child's   consortium  far exceeds   the .

economic   value   of   the   compensation awarded   in   the case     of     the     death     of     a     child.     Most jurisdictions therefore       permit       parents       to       be       awarded compensation under loss of consortium on the death of a child.   The   amount   awarded   to   the   parents   is   a compensation   for   loss   of   the   love,   affection,   care   and companionship of the deceased child. 

The Motor Vehicles Act is a beneficial legislation aimed   at providing   relief   to   the   victims   or   their families, in cases of genuine claims. In case where a parent has lost their minor child, or unmarried son or daughter,  the  parents  are  entitled  to  be  awarded  loss  of consortium under the head of Filial Consortium. 

Parental Consortium is awarded to children who lose their parents in motor vehicle accidents under the Act.

A   few   High   Courts   have   awarded   compensation on this   count .   However,   there   was   no   clarity   with respect to the principles on which compensation could be awarded on loss of Filial Consortium. 

The   amount   of   compensation   to   be   awarded   as consortium   will   be   governed   by   the   principles   of awarding compensation under 'Loss of Consortium' as laid down in Pranay Sethi (supra).

In   the   present   case,   we   deem   it   appropriate   to award   the   father   and   the   sister   of   the   deceased, ::: Downloaded on - 21/12/2018 22:55:24 :::HCHP 9 an amount   of   Rs.   40,000   each   for   loss   of   Filial Consortium.

12 In   view   of   the   aforesaid   exposition   of   law,   the .

claimants are entitled to a sum of Rs.40,000/­ each for loss of filial.

13 Accordingly, in light of the aforesaid discussion, the claimants, being parents of the deceased, are now held entitled to the following amounts:­ Sr.  Head Compensation No. Awarded i.

                   Income                     Rs.3600/­

            ii.    Future prospects           Rs.1440/­ (40% of the
                                              income)

iii. Deduction   towards Rs.2520/­  (i.e.  50%  of personal   expenditure Rs. 3600 + Rs.1440) @ 50% iv. Total income Rs.2520/­   (50%   of Rs.3600 + Rs.1440) v. Multiplier  18 ( as per age  of  the deceased) vi. Loss of future income Rs.5,44,320/­   (i.e. 2520 x 12 x18) vii. Loss   of   love   and Rs.1,00,000/­ affection (Rs.50,000/­ each) viii. Loss of estate Rs.15,000/­ ix. Funeral expenses Rs.15,000/­ x. Loss of filial  Rs.80,000/­ (Rs.40,000/­ each) Total compensation Rs.7,54,320/­   along with interest @ 9% per annum   from   the   date of   filing   of   petition   till ::: Downloaded on - 21/12/2018 22:55:24 :::HCHP 10 the   final   realization   of the amount. 

14 Accordingly,   the   appeal   is   partly   allowed   and   the .

award   dated   14.5.2015   passed   by   the   learned   Tribunal   is modified to the extent that the claimants would now be entitled to   a   total   compensation   of   Rs.7,54,320/­   instead   of Rs.9,35,000/­ along with interest @ 9% per annum from the date of   filing   of   the   claim   petition   till   its   realization.   Pending application(s), if any, also stands disposed of leaving the parties to bear their own costs. 



December 18, 2018                                    (Tarlok Singh Chauhan)
     (pankaj)                                                    Judge








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