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Bajaj Allianz General Insurance Company Ltd. & Another v/s Krishna & Others

    MAC.App. Nos. 595 of 2017, 169 of 2018

    Decided On, 05 July 2018

    At, High Court of Delhi

    By, THE HONOURABLE MR. JUSTICE J.R. MIDHA

    For the Appearing Parties: M.P. Shahi, Rakesh Gupta, Om Prakash Gupta, Shantha Devi Raman, Arihant Jain, Advocates.



Judgment Text

Oral:

1. The parties have challenged the award of the Claims Tribunal whereby compensation of Rs.6,40,000/- has been awarded to the claimants.

2. The accident dated 4th August, 2016 resulted in the death of Raj Kumar @ Raju. The deceased was survived by his four brothers and two sisters including a widowed sister. The widowed sister claimed compensation for the death of Raj Kuma

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3. The deceased was aged 40 years at the time of the accident and was working as a tailor. The Claims Tribunal took minimum wages of unskilled workman as Rs.9,568/- per month, deducted 1/3rd towards the personal expenses and applied the multiplier of 15 to compute loss of estate as Rs.5,74,080/-. The Claims Tribunal awarded Rs.50,000/- towards loss of love and affection and Rs.15,000/- towards funeral expenses. The total compensation awarded is Rs.6,40,000/-.

4. Learned counsel for the appellant in MAC.APP.595/2017 urged at the time of the hearing that the claimants are entitled to 15% of the income of the deceased in terms of the principles laid down by this Court in Keith Rowe v. Prashant Sagar, 2011 ACJ 1734. It is further submitted that the loss of love and affection is no more permissible head in terms of the principles laid down in National Insurance Co. Limited v. Pranay Sethi, (2017) 13 SCALE 12.

5. Learned counsel for the claimants submits that the future prospects of 25% have not been taken into consideration by the Claims Tribunal in terms of Pranay Sethi (supra).

6. Ms. Shantha Devi Raman, learned amicus curiae submits that the loss of estate @ 15% of the income of the deceased be awarded to the claimants in terms of the principles laid down in Keith Rowe (supra).

7. Taking the minimum wages of Rs.9,568/- per month as income of the deceased, adding 25% towards future prospects and applying the multiplier of 15 and taking 15% thereof, the loss to the estate is computed as Rs.3,22,920/-. Rs.15,000/- is awarded towards funeral expenses. The claimant is entitled to total compensation of Rs.3,37,920/- along with interest @ 9% per annum.

8. MAC.APP.595/2017 is allowed and the compensation amount is reduced from Rs.6,40,000/- to Rs.3,37,920/- along with interest @ 9% per annum. MAC.APP.169/2018 is dismissed.

9. The insurance company has deposited the entire award amount with the Registrar General of this Court in terms of order dated 6th December, 2017. As per the calculation done by the Accounts Officer, the claimant is entitled to compensation of Rs.3,86,100/- (Rs.3,86,073.6 rounded off) which includes the interest as on today.

10. The Registrar General is directed to disburse Rs.3,86,100/- to the claimant by instructing UCO Bank, Delhi High Court Branch as under:

(i) Rs.1 lakh be transferred to the savings bank A/c No.32030100006537, with Bank of Baroda, Lajpat Nagar branch, New Delhi (IFSC Code : BARBOLAJPAT) of claimant.

(ii) Rs.2,86,100/- be kept in two FDRs of equal amount for the period 6