The Jammu and Kashmir High Court has directed the HDFC ERGO General Insurance to pay rs. Rs. 32.14 lakhs to the claimants.
Through the medium of this appeal, the appellant/Insurance Company has impugned the award dated 05.08.2016 passed by the Motor Accident Claims Tribunal, Jammu (hereinafter to be referred as the Tribunal) whereby the appellant/Insurance Company has been directed to pay an amount of Rs. 36,70,000/- alongwith interest @ 7.5 per annum to the respondent Nos. 1 to 4 from the date of filing of the claim petition till its realization.
The appellant/Insurance Company has assailed the impugned award on the ground that the same is non-speaking and that the amount awarded by the learned Tribunal to the respondent is on higher side and contrary to the judgments of the Apex Court.
The respondent filed a claim petition before the Tribunal claiming compensation on account of death of one Aftab Alam, who died in a vehicular accident on 05.07.2012 at about 3.30 p.m. at Ranigunj Chowk, Rampura District Araria, Bihar involving offending vehicle No. HR-56- A/2432, driven rashly and negligently by its driver.
It was pleaded by the respondent in the claim petition that the deceased was the Imam of Masjid Bilal-Poonch House, Govt. Quarters, Talab Tillo and was earning Rs. 10,000 per month. Besides, the deceased was also running a shop under the banner of “Kareem Halal Chicken” at Hazuri Bagh Bohri, Jammu and from that shop he was earning Rs. 30,000 per month.
The appellant/Insurance Company filed the objections to the claim petition filed by respondent Nos. 1 to 4 and admitted the insurance in respect of the offending vehicle.
The Tribunal allowed the claim petition filed by respondent and directed the appellant/Insurance Company to pay an amount Rs. 36,70,000/- alongwith interest @ 7.5 per annum from the date of filing of the claim petition till its realization to the respondent.
The court found that the learned Tribunal has considered the monthly income of the deceased as Rs. 16,000/- per month i.e. 10,000/- as salary of Imam of Masjid Bilal-Poonch House, Govt. Quarters, Talab Tillo and Rs. 6000/-as income from the business, which the deceased was running in the shop.
The Court did not find any illegality in the monthly income determined at by the learned Tribunal as no income tax was payable in the financial year 2012-2013 for an amount below Rs. two lacs.
A perusal of the award further reveals that a sum of Rs. 1,00,000 awarded to the respondent as “loss of consortium” and Rs. 3,00,000/- has been awarded to the respondent on account of “loss of love and affection”.
In the case of Pranay Sethi, the Supreme Court has held that Rs. 40,000/- is to be paid to a spouse on account of “loss of consortium” and a sum of Rs. 40,000/- is required to be paid to the child on account of “loss of parental consortium” as per the Magma General Insurance Co. Ltd. Vs. Nanu Ram and others.
Income of the deceased was required to be enhanced @ 40% as the deceased was self-employed . So far as the multiplier is concerned, the learned Tribunal has rightly applied the multiplier of 15.
The court directed the payment of Rs. 32,14,000/-, the same be released in favor of respondent/claimants after proper identification and the balance amount, if any, shall be refunded to the appellant/Insurance Company. Interest components shall remain the same. The award impugned is modified accordingly.
Case Title: HDFC ERGO General Insurance Co. Ltd. V/s Ashmat Jahan and ors.