Iffco Tokio General Insurance Co Ltd v. Reshma Devi and Ors

104.o o o o o o INoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAo AToCHANDIGARHo o CMoNo.13356-CII-2023oinoo FAOoNo.1047oofo2016o DateoofoDecision:o11.10.2023o o oo IffcooTokiooGeneraloInsuranceoCompanyoLimitedo o ooo...oAppellanto o Versuso o ReshmaoDevioandootherso o o o o o ...oRespondentso o o CORAM:oo HON'BLEoMR.oJUSTICEoGURBIRoSINGHo o Present:oo Mr.oRajneeshoMalhotra,oAdvocate,oforotheoappellant.o o o Mr.oAshitoMalik,oAdvocate,ofororespondentsoNo.1oando2.o o o NoneofororespondentsoNo.3oando4.o ----o o GURBIRoSINGH,oJ.oo o o CM-13356-CII-2023o o o PrayeroinothisoapplicationofiledounderoSectiono151oCPCobyo respondentsoNo.1oando2-claimantsoisoforovacationoofostayograntedovideo orderodatedo11.02.2016.oo o o Pursuanto too noticeo ino theo application,o Mr.o Rajneesho Malhotra,oAdvocate,ohasocausedoappearanceoonobehalfoofonon-applicant/o appellant-Insuranceo Company.o Aso pero officeo report,o respondento No.3-drivero haso beeno served,o whereaso respondento No.4o iso reportedo too haveo died.o o o Ito iso submittedo byo learnedo counselo foro theo applicant-claimants-respondentsoNo.1oando2othatopresentoappealohasobeenofiledobyoo FAOoNo.1047oofo2016o(O&M)oo o o o -o2o-o o theoInsuranceoCompanyoonotheoquestionoofoquantumoandotheoappellant-Insuranceo Companyo haso too satisfyo theo awardo passedo ino favouro ofo theo respondentsoNo.1oando2-claimants,osooserviceouponorespondentsoNo.3oando 4oi.e.odriveroandoownerorespectivelyoisonotonecessary.oo oo o Learnedocounseloforotheoapplicant-respondentsoNo.1oando2o haso alsoo prayedo thato insteado ofo decidingo stayo application,o maino case,o whichostoodoadmitted,obeoheardoandodecidedoonomerits.o o o Saido requesto ofo learnedo counselo foro theo applicant-respondentso No.1o ando 2o iso noto opposedo byo learnedo counselo foro theo appellant.o o o Inoviewoofoabove,oserviceouponorespondentsoNo.3oando4oiso herebyo dispensedo with.o Witho theo consento ofo learnedo counselo foro theo parties,otheomainocase,owhichowasoadmittedovideoorderodatedo23.09.2019,o isotakenoonoboardoforohearingotodayoitself.ooo o o Theo applicationo foro stayo iso disposedo ofo sinceo byo thiso judgment,omainocaseoitselfoisobeingodisposedoof.o o FAOoNo.1047oofo2016o o

1.o o Theo presento appealo haso beeno filedo byo theo Insuranceo Companyoi.e.oinsureroofotheooffendingovehicle,oagainstotheoawardodatedo

01.10.2015opassedobyolearnedoMotoroAccidentoClaimsoTribunal,oKarnal,o wherebyodriver,oowneroi.e.orespondentsoNo.3oando4ohereinoalongowithotheo appellant-InsuranceoCompanyohaveobeenoheldoliableojointlyoandoseverallyo toopayotheoamountoofocompensationotootheoclaimants.o o FAOoNo.1047oofo2016o(O&M)oo o o o -o3o-o o o

2.o o Brieflyo stated,o theo claimants-respondentso No.1o ando 2,o motheroandobrotheroofotheodeceasedoKrishanoKumar,ofiledoaopetitionoforo granto ofo compensationo thato respondento No.3-drivero ofo TATAo ACEo vehicleoregistrationoNo.HR-45A-5582ocausedotheoaccidentowhileodrivingo saidooffendingovehicleoono06.07.2013oatoabouto6.50oA.M.oandotherebyo causedotheodeathoofoKrishanoKumaroinotheosaidoaccident.oFIRowasoalsoo lodgedo ato Policeo Stationo Gharaunda,o Karnalo ono theo sameo dayo i.e.o

06.07.2013.oItowasoaverredothatoKrishanoKumarowasoworkingowithoMarutio UdyogoLimited.oRelyingoonotheosalaryostatementoofoJune,o2013oEx.P2,o incomeoofotheodeceasedowasotakenoasoRs.29,052/-operomonth,owhichowaso roundedo offo too Rs.29,000/-o pero month.o Ato theo timeo ofo accident,o theo deceasedowaso24oyearsoold.oWhileodeductingopersonaloexpenses,o50%oofo theo incomeo waso takeno aso futureo prospects.o Theo Tribunalo awardedo theo amountoofocompensationounderotheofollowingoheads:-k o DateoofoAccidento 6.7.2013o Ageoofoo 24oyearso o deceasedo Claimantso Motheroandobrotheroofo o deceasedo Sr.oNo.o o o

1.o Incomeo Rs.29,000/-peromonth.o

2.o Addo50%oofoincreaseoonoaccountoofo Rs.14,500/-oo o futureoprospectso (29,000+14,500)=Rs.43,500/-o

3.o Deductiono1/3rdoasonumberoofo Rs.4,500/-o dependentsoareotwoo (43,500-14,500)=Rs.29,000/-o

4.o Multipliero(Annualized)o Eighteeno(18)o

5.o Multipliero eighteeno(18)oo o 29,000oXo12oxo18=oRs.62,64,000/-o

6.o Lossoofodependencyo Rs.62,64,000/-o

7.o Medicaloexpenseso Nilo

8.o Lossoofoconsortiumotoospouseo Nilo

9.o Lossoofoloveoandoaffectionoforo Rs.2,00,000/-o mothero&obrotheroofodeceased.o

10.o Lossoofoestateo Rs.1,00,000/-.o

11.o Funeraloexpenseso Rs.25,000/-o o Totalo Rs.65,89,000/-o o o FAOoNo.1047oofo2016o(O&M)oo o o o -o4o-o o

3.o o Learnedocounseloforotheoappellant-InsuranceoCompanyohaso assailedo theo awardo passedo byo theo Tribunalo ono theo questiono ofo compensation.oItoisosubmittedothatosinceotheodeceasedoKrishanoKumarowaso bachelor,odeductionsotowardsopersonaloexpensesoshouldohaveobeenotakeno rdaso½o insteado ofo 1/3 .o Multipliero witho regardotoo ageoofo mothero ofo theo deceasedowasorequiredotoobeotakenointooconsideration,obutotheoTribunalo adoptedotheomultiplieroofo18okeepingoinoviewotheoageoofotheodeceased.oTheo motherowasoabouto55oyearsoofoage,osoomultiplieroofo9owasorequiredotoobeo takenointooconsideration.oTheobrotheroofodeceasedocannotobeoconsideredo asodependentouponotheodeceased.oThereowasonooevidenceoonorecordothato theo deceasedo waso ino permanento jobo ando hado ao steadyo income,o soo theo learnedo Tribunalo haso wronglyo grantedo 50%o aso futureo prospects.o Theo compensationotowardsolossoofoloveoandoaffectionotootheoextentoofoRs.1o lakho too botho theo claimants,o Rs.1o lakho towardso losso too estateo ando Rs.25,000/-o foro funeralo expenseso haveo beeno wronglyo awarded.o Ito iso furtherosubmittedothatoPW-1oVikashoKumar,oAssistantoManager,oMarutio Suzuki,oGurgaon,ohadohimselfoadmittedoinohisocross-examinationothatosumo ofo Rs.29,67,434/-o ando Rs.7,50,000/-o wereo paido too respondento No.1,o motheroofodeceased,oandosaidoamountowasorequiredotoobeodeductedofromo theoamountoofocompensationoawardedotootheoclaimants.o

3.1o o Learnedo counselo furthero submitso thato theo incomeo ofo theo deceasedohasobeenowronglyotakenoasoRs.29,000/-operomonthodespiteotheo factothatotheoallowancesoviz.oHRA,ouniformomaintenance,oreimbursement,oo FAOoNo.1047oofo2016o(O&M)oo o o o -o5o-o o childoeducationoallowance,oconveyanceoallowance,oadditionaloconveyanceo wereopersonaloallowancesotootheodeceasedoandowereoliableotoobeodeductedo fromo theo incomeo ofo theo deceasedo whileo assessingo compensation.o Theo otheroallowancesosuchoasoB-Shiftoallowance,oPPRSoBo(in-houseospares),o PPRSo(A)oareotheoincentivesotootheodeceasedoandotheosameofluctuateoeveryo montho ofo theo basiso ofo manyo factorso i.e.o attendance,o productiono ando therefore,osameocouldonotohaveobeenoassessedoasoaopartooforegularomonthlyo incomeoofotheodeceased.ooB-shiftoallowanceoisomeantoforonightoserviceoaso admittedobyoPW1oandotheosameowasoliableotoobeodeductedowhileoassessingo theoamountoofocompensation.oNoodeductionoonoaccountoofoincomeotaxohaso beenomadeofromotheoincomeoofotheodeceased.oTheointerestoawardedoonotheo amountoofocompensationoatotheorateoofo12%operoannumoisoonohigheroside.o

4.o o Learnedo counselo foro respondentso No.1o ando 2-claimantso submitsothatotheodeceasedo waso permanento employeeo ofoMarutio Udyogo Limited.o Theo incomeo ofo theo deceasedo haso beeno rightlyo takeno intoo considerationo byo theo learnedo Tribunalo ino accordanceo witho theo settledo principlesoofolaw.oo

5.o o Iohaveoheardolearnedocounseloforotheopartiesoandohaveogoneo throughotheorecord.o

6.o o Theodeceasedowaso24oyearsoofoage,oaobachelor,osoodeductiono withoregardotoopersonaloexpensesoshouldohaveobeenotakenoaso½oinsteadoofo rd1/3 .ooTheomultiplieroisorequiredotoobeobasedoonotheoageoofotheodeceasedo andonototheoageoofotheoclaimant-motheroasoheldobyotheoHon'bleoSupremeo CourtoinoSubeoSinghoandoanotheroVersusoShyamoSingho(dead)oandoo FAOoNo.1047oofo2016o(O&M)oo o o o -o6o-o o others,o 2018(2)o R.C.R.o (Civil)o 131.o Sinceo theo deceasedo waso regularo employeeoofotheoCompanyoasostatedobyoPW-1oVikashoKumar,oAssistanto Manager,oMarutioSuzuki,oGurgaon,oso,ofutureoprospectsohaveobeenorightlyo takenoaso50%.oTheopayoslipoforotheomonthoofoJune,o2013owasoprovedoaso Ex.P2owhereoRs.12,000/-ohasobeenoshownoasoLTC.oItoisonototheocaseoofotheo claimantso thato saido amounto waso paido everyo month,o soo sameo haso beeno rightlyo deductedo whileo assessingoincomeo ofo theodeceased.o Sinceo othero allowancesoareobeingopaidomonthlyolikeochildoeducationoallowance,oB-shifto allowance,o PPRSo Bo (in-houseo spares),o conveyanceo allowance,o additionalo allowance,o PPRSo (A),o sameo areo takeno aso incomeo ofo theo deceased.o So,o theo incomeo ofo theo deceasedo haso beeno rightlyo takeno aso Rs.29,052/-operomonthowhichowasoroundedooffotooRs.29,000/-operomonth.o Sinceotheoincomeoofotheodeceasedoexceedsotaxableolimits,osooincomeotaxo @o10%oisorequiredotoobeodeductedofromotheoincomeoofotheodeceased.oTheo claimantso areo entitledo too theo amounto undero conventionalo headso aso mentionedoinocaseoNationaloInsuranceoCompanyoVersusoPraneyoSethio andoothers,o(2017)o14oSCCo663.oTheoawardoofoRs.1olakhotoobothotheo claimants,o Rs.1o lakho towardso losso ofo estateo ando Rs.25,000/-o towardso funeraloexpensesohaveobeenowronglyoawarded.oo

6.1o oo InoviewoofotheolawolaidodownoinoVimaloKanwaroandootherso VersusoKishoreoDanoandoothers,o2013(2)oR.C.R.o(SupremeoCourt)o945,o anyoamountoofofinancialoassistanceopaidotoolegaloheirsoofodeceasedoisonotoo o FAOoNo.1047oofo2016o(O&M)oo o o o -o7o-o o toobeodeductedowhileocomputingocompensationoandothisoCourtoisoalsooofo theosameoview.o

6.2o o Anothero argumento raisedo byo learnedo counselo foro theo appellantothatotheobrotheroofodeceasedocannotobeoconsideredoasodependento uponotheodeceasedoandonooconsortiumocanobeograntedotoohim,ofindsoforce.o Claimanto No.2-Pardeep,o brothero ofo deceased,o waso minoro ato thato time.o SinceoparentsoofoclaimantoNo.2owereoaliveoatotheotimeoofodeathoofoKrishano Kumar,o soo heo cannoto beo consideredo aso dependento upono hiso brothero KrishanoKumar,osinceodeceased.oMoreover,othereoisonooevidenceobroughto byoclaimantsothatoclaimantoNo.2owasodependentouponodeceased.oAsosuch,o nooconsortiumocanobeograntedotoohim.oInocaseoMagmaoGeneraloInsuranceo Companyo Limitedo Versuso Nanuo Ramo aliaso Churuo Ramo ando others,o 2018(3)o Lawo Heraldo (SC)o 2410,o consortiumo waso grantedo onlyo too theo spouse,ochildrenoandomother.oLossoofoconsortiumowasoagainoconsideredo byo theo highero Bencho ofo Hon'bleo Supremeo Courto ino Unitedo Indiao InsuranceoCompanyoLimitedoVersusoSatinderoKauro@oSatwinderoKauro andoothers,o2021(11)oSCCo780,o2020(2)oLawoHeraldo(SC)o1715.oTheo relevantoextractoofotheosaidojudgmentoisoasounder:-oo "b)oo LossoofoConsortiumoo oo Losso ofo Consortium,o ino legalo parlance,o waso historicallyogivenoaonarrowomeaningotoobeoawardedoonlyotoo theospouseoi.e.otheorightoofotheospouseotootheocompany,ocare,o help,o comfort,o guidance,o society,o solace,o affectiono ando sexualo relationso witho hiso oro hero mate.o Theo losso ofo companionship,olove,ocareoandoprotection,oetc.,otheospouseoiso entitledo too get,o haso too beo compensatedo appropriately.o Theo conceptoofonon-pecuniaryodamageoforolossoofoconsortiumoiso oneoofotheomajoroheadsoforoawardingocompensationoinoo FAOoNo.1047oofo2016o(O&M)oo o o o -o8o-o o o variousojurisdictionsosuchoasotheoUnitedoStatesoofoAmerica,o Australia,oetc.oEnglishocourtsohaveorecognisedotheorightoofoao spouseo too geto compensationo eveno duringo theo periodo ofo temporaryodisablement.oo InoMagmaoGeneraloInsuranceoCo.oLtd.ov.oNanuoRamo &o Ors.,o thiso Courto interpretedo "consortium"o too beo ao compendiousoterm,owhichoencompassesospousaloconsortium,o parentaloconsortium,oasowelloasofilialoconsortium.oTheorighto too consortiumo wouldo includeo theo company,o care,o help,o comfort,o guidance,o solaceo ando affectiono ofo theo deceased,o whichoisoaolossotoohisofamily.oWithorespectotooaospouse,oito wouldoincludeosexualorelationsowithotheodeceasedospouse.oo Parentaloconsortiumoisograntedotootheochildouponotheo prematureo deatho ofo ao parent,o foro losso ofo parentalo aid,o protection,o affection,o society,o discipline,o guidanceo ando training.oo Filialo consortiumo iso theo righto ofo theo parentso too compensationoinotheocaseoofoanoaccidentalodeathoofoaochild.o Ano accidento leadingo too theo deatho ofo ao childo causeso greato shockoandoagonyotootheoparentsoandofamilyoofotheodeceased.o Theogreatestoagonyoforoaoparentoisotooloseotheirochildoduringo theiro lifetime.o Childreno areo valuedo foro theiro loveo ando affection,oandotheiroroleoinotheofamilyounit.oo Modernojurisdictionsoworld-overohaveorecognizedothato theovalueoofoaochild'soconsortiumofaroexceedsotheoeconomico valueoofotheocompensationoawardedoinotheocaseoofotheodeatho ofoaochild.oMostojurisdictionsopermitoparentsotoobeoawardedo compensationounderolossoofoconsortiumoonotheodeathoofoao child.o Theo amounto awardedo too theo parentso iso theo compensationo foro losso ofo loveo ando affection,o careo ando companionshipoofotheodeceasedochild.oo Theo Motoro Vehicleso Act,o 1988o iso ao beneficialo legislationo whicho haso beeno framedo witho theo objecto ofo providingoreliefotootheovictims,oorotheirofamilies,oinocasesoofo genuineoclaims.oInocaseowhereoaoparentohasolostotheirominoro child,oorounmarriedosonoorodaughter,otheoparentsoareoentitledo toobeoawardedolossoofoconsortiumounderotheoheadoofoFilialo Consortium.oo ParentaloConsortiumoisoawardedotootheochildrenowhoo loseotheocareoandoprotectionoofotheiroparentsoinomotorovehicleo accidents.oo Theoamountotoobeoawardedoforolossoconsortiumowillobeo asoperotheoamountofixedoinoPranayoSethio(supra).oo Ato thiso stage,o weo considero ito necessaryo too provideo uniformityowithorespectotootheograntoofoconsortium,oandolosso ofoloveoandoaffection.oSeveraloTribunalsoandoHighoCourtsoo FAOoNo.1047oofo2016o(O&M)oo o o o -o9o-o o haveo beeno awardingo compensationo foro botho losso ofo consortiumoandolossoofoloveoandoaffection.oTheoConstitutiono BenchoinoPranayoSethio(supra),ohasorecognizedoonlyothreeo conventionalo headso undero whicho compensationo cano beo awardedoviz.olossoofoestate,olossoofoconsortiumoandofuneralo expenses.oo Ino Magmao Generalo (supra),o thiso Courto gaveo ao comprehensiveo interpretationo too consortiumo too includeo spousalo consortium,o parentalo consortium,o aso wello aso filialo consortium.oLossoofoloveoandoaffectionoisocomprehendedoino lossoofoconsortium.oo TheoTribunalsoandoHighoCourtsoareodirectedotooawardo compensationoforolossoofoconsortium,owhichoisoaolegitimateo conventionalo head.o Thereo iso noo justificationo too awardo compensationo towardso losso ofo loveo ando affectiono aso ao separateohead."o o

6.3o o Ino viewo ofo aboveo discussion,o theo claimanto No.2o beingo brotheroisonotoentitledoforoanyoconsortium.o

6.4o o Keepingoinoviewotheoprevalentorateoofointerestoinotheoyearo 2013owhenotheoaccidentotookoplace,otheoclaimantsoareoentitledoforointeresto onotheoawardedoamountoatotheorateoofo7.5%operoannum.oo

7.o o Accordingly,otheoamountoofocompensationowhichoclaimanto No.1oisoentitled,oisobeingore-calculatedoasounder:-o o

1.o Incomeoofotheodeceasedo Rs.29,000/-peromonth.o

2.o Addo50%oofoincreaseoonoaccounto Rs.14,500/-oo (29,000+14,500)=Rs.43,500/-oo ofofutureoprospectso

3.o Annualo Rs.5,22,000/-o(43,500X12)o

4.o Taxodeductionoino2013o 5,22,000/-o oooooooootiootoo2olakhoooooooooooooo=ooti%o 10%oofo3,00,000=o30,000o2olakhotoo5olakhooooooo=o10%o 20%oofo22,000=4,400o5olakhotoo10olakhooooo=o20%o 5,22,000-34,400=4,87,600o

5.o Deductiono50%o(bachelor)o 2,43,800/-oo(4,87,600xo½)o

6.o Multipliero 18o

7.o Lossoofodependencyo Rs.43,88,400/-ooo(2,43,800oxo18)o

8.o Lossoofoconsortiumoo Rs.44,000/-oo

9.o Lossoofoestateo Rs.16,500/-o

10.o Funeraloexpenseso Rs.16,500/-o o Totalo Rs.44,65,400o o o o o FAOoNo.1047oofo2016o(O&M)oo o o o -o10o-o o

8.o o Inoviewoofoabove,otheoawardoofotheoTribunaloisomodifiedotoo theoaboveoextentoandorespondent-claimantoNo.1,onamely,oReshmaoDevio shallobeoentitledotooRs.44,65,400/-owhichoshallobeodisbursedotooheroinotheo manneroalreadyoindictedobyotheoTribunaloinoitsoawardodatedo01.10.2015.o However,otheosaidoamountoshallocarryointeresto@o7.5%operoannumobeforeo theodateoofotheopetitionotilloitsorealization.oo

9.o o Theoappealostandsodisposedoofoaccordingly.o o o (GURBIRoSINGH)oo JUDGEo Octobero11,o2023o sanjeevoo Whetherospeaking/reasoned:oYes/Noo Whetheroreportable:oo oooooYes/Nooo o o o o