In a couple of appeals filed under Section 173(1) of the Motor Vehicle Act, 1988 (MV Act) before the Karnataka High Court against the judgement and order dated 10-01-2020 by the Principal Senior Civil Judge and Additional Motor Accident Claims Tribunal, Udupi, a Single Judge Bench of Justice Umesh M Adiga modified the impugned judgment and enhanced the compensation awarded to the claimants.
One of the two appeals was filed by the National Insurance Company Ltd. (NICL) against the award for compensation whereas the other appeal was filed by the claimants for seeking enhancement of the compensation.
On 12-07-2017, the deceased, an unmarried coolie who earned Rs. 500 per day, met with an accident due to rash and negligent driving of a bus driver. Resultantly, the deceased suffered grievous injuries and succumbed to the same. His brother and sisters who were dependant on his earnings filed a claim to be compensated with Rs. 25,08,700/-.
NICL, the insurer, denied its liability to pay the compensation while contending that the claimants could not be considered as the dependants of the deceased. Appreciating the evidence on record, the Tribunal awarded Rs. 10,60,000/- as compensation to the claimants.
In the present matter, NICL contended that the deceased was unmarried and his married sisters were residing in the respective husbands’ houses which is why they could not be considered as the legal heirs or dependants of the deceased.
The Court noted that the Tribunal assessed the income of the deceased as Rs. 10,000/- per month and added 25% of his income towards his future prospects. It was further noted that the petition as well as the evidence adduced by the prosecution witness mentioned that the claimants were dependant on the deceased.
The Court stated that NICL’s contention that the married sisters could not be treated as dependants since they were residing in their matrimonial homes was untenable since in it is not uncommon for married daughters and sisters to maintain a close relationship with their parental family. The Court found no contra evidence to disbelieve that the deceased was financially assisting the claimants.
Further, the Court noted that the Tribunal had taken the notional income of the deceased on the lower side and took the notional income to be Rs. 11,000/- following the chart by the Karnataka State Legal Services Authority. 25% of the deceased’s income was added towards his future prospects and deducted 50% towards personal expenses as he was unmarried. A multiplier of ‘14’ was found applicable and hence, the Court re-calculated the amount of compensation under the head ‘loss of dependency’.
The Court held that the claimants were entitled to an enhanced compensation of Rs. 2,45,000/- with interest at 6% per annum on the enhanced amount. Further, the Court found that the owner of the vehicle and NICL were jointly and severally liable to pay the compensation.
The Court dismissed the appeal by NICL and partly allowed the appeal by the claimants by modifying the impugned judgment as well as award. Lastly, the Court directed NICL to deposit the enhanced compensation of Rs. 2,45,000/- with 6% per annum within six weeks from the date of award.
Appearances:
In MFA No. 3886/2020
For Appellant(s) – Mr. Lakshmi Narasappa, Mr. A.M. Venkatesh
For Respondent(s) – Mr. B.S. Sachin
In MFA No. 4216/2020
For Appellant(s) – Mr. B.S. Sachin
For Respondent(s) – Mr. Lakshmi Narasappa, Mr. A.M. Venkatesh