High Court of KeralaDivision BenchAppeal allowed; award modified; insurer liable ...

Balan Nambiar & Others v. Janeevan & National Insurance Company Ltd., MACA No. 137 of 2007

Case / Petition Number:MACA.No 137 of 2007

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Pius C. KuriaKose
  • A.V. Ramakrishna Pillai
Judgment Date
2012-02-16
Court Decision / Holding
The appeal is allowed. The award shall stand modified and appellants are entitled to an additional Rs. 12,000 with interest at 7.5% per annum from the date of the award. The finding exonerating the insurer is set aside; the insurer is directed to pay the award amount and to recover it from the owner.
Final Disposition
Appeal allowed; award modified; insurer liable with recovery from owner

Parties to the Case

Appellants / Petitioners

  • Balan Nambiar
  • T. Bharathi Amma
  • T. Rameshan
  • T. Vinayan
  • T. Sreeshan

Respondents

  • Janeevan (driver and owner of autorickshaw)
  • National Insurance Company Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. B. Krishnan
  • • Sri. R. Parthasarathy

Counsels for Respondents

  • • Sri. C. Valsalan
  • • Sri. K. Rakesh Roshan
  • • Sri. Joe Kalliath

Case Synopsis & Summary

The Kerala High Court heard MACA No. 137 of 2007 (OP(MV)296/2002, MACT, Vadakara) on 16 February 2012. The appellants are the mother and father and siblings of Sushanth, who died in a road traffic accident on 6 November 2001 while travelling in an autorickshaw. The Motor Accidents Claims Tribunal had awarded Rs. 1,94,000 in compensation but exonerated the National Insurance Company Ltd. from paying, on finding that the autorickshaw driver lacked a valid driving license. The appellants challenged the quantum and the insurer’s liability. The High Court re-evaluated the loss of dependency by increasing the deceased’s monthly income to Rs. 2,500 (from the Tribunal’s Rs. 2,000) and applying a multiplier of 13 for a mother aged 55, while noting the accident occurred in 2001. It revisited the deductions for personal expenses, invoking Sarla Verma principles to argue for adjustments in the dependency calculation and liability. The Court also enhanced heads such as pain and suffering, loss of love and affection, and loss of estate, and adjusted funeral expenses. Crucially, it held that the insurer cannot be exonerated solely because the driver lacked a license; the insurer should pay and recover from the owner. The appeal was allowed, with an additional Rs. 12,000 awarded and 7.5% interest from the award date.

Legal Doctrines & Maxims

  • Sarla Verma v Delhi Transport Corporation (2010(2) KLT 802 SC)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the compensation for loss of dependency was understated due to the Tribunal fixing the deceased’s monthly income at Rs. 2,000 and using an inapt multiplier. Given the deceased was about 27 years old, they argued he would have earned at least Rs. 2,500 per month. They urged applying Sarla Verma principles to determine proper deductions for living expenses and to adopt an appropriate multiplier, resulting in higher dependency compensation. They also sought increases in other heads (pain and suffering, loss of love and affection, loss of estate, and funeral expenses) and maintained insurer liability with recovery from the owner if necessary.

Contentions of Respondents

The respondents argued that the MACT’s exoneration of the insurer was correct, since the driver allegedly did not hold a valid driving license, and that policy terms could limit liability. They maintained that the evidence did not prove a valid license and that the award should stand or be modified only on quantum, not insurer liability.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Sarla Verma v Delhi Transport Corporation2010(2) KLT 802 SCPositiveCited as the authority for deduction of personal living expenses and multiplier considerations in calculating loss of dependency.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** ## **THE HONOURABLE MR.JUSTICE PIUS C.KURIAKOSE & THE HON'BLE MR. JUSTICE A.V.RAMAKRISHNA PILLAI** **THURSDAY, THE 16TH DAY OF FEBRUARY 2012/27TH MAGHA 1933** ## **MACA.No. 137 of 2007 ( )** ## **-----------------------OP(MV.)296/2002 OF MOTOR ACCIDENTS CLAIMS TRIBUNAL, VADAKARA -----------** ## **APPELLANTS/PETITIONERS IN O.P.(MV):** **-----------------------------------** **1. BALAN NAMBIAR, AGED 65 YEARS, S/O.RAMA KURUP, VADAKKE KUNIYIL HOUSE VELLIKULANGARA, P.O.MADAPPALLY COLLEGE VADAKARA TALUK, KOZHIKODE DISTRICT. (FATHER OF DECEASED SUSHANTH).** **2. T.BHARATHI AMMA, W/O.BALAN NAMBIAR,** **59 YEARS, RESIDING AT VADAKKE KUNIYIL HOUSE VELLIKULANGARA, P.O.MADAPPALLY COLLEGE VADAKARA TALUK, KOZHIKODE DISTRICT. (MOTHER OF DECEASED SUSHANTH).** **3. T.RAMESHAN, S/O.BALAN NAMBIAR,** - **38 YEARS, VADAKKE KUNIYIL HOUSE, VELLIKULANGARA P.O.MADAPPALLY COLLEGE, VADAKARA TALUK KOZHIKODE DISTRICT. (BROTHER OF DECEASED SUSHANTH).** **4. T.VINAYAN, S/O.BALAN NAMBIAR,** - **36 YEARS, VADAKKE KUNIYIL HOUSE, VELLIKULANGARA P.O. MADAPPALLY COLLEGE, VADAKARA TALUK KOZHIKODE DISTRICT. (BROTHER OF DECEASED SUSHANTH).** **5. T.SREESHAN, S/O.BALAN NAMBIAR,** - **34 YEARS, VADAKKE KUNIYIL HOUES, VELLIKULANGARA P.O.MADAPPALLY COLLEGE, VADAKARA TALUK KOZHIKODE DISTRICT. (BROTHER OF DECEASED SUSHANTH).** **BY ADVS.SRI.B.KRISHNAN** **SRI.R.PARTHASARATHY** **...2/-** ## **MACA.No. 137 of 2007 ( ) -2-** **RESPONDENTS/RESPONDENTS IN OP (MV):** **-------------------------------------** **1. JANEEVAN, MEETHALA VARISAM KUNI HOUSE, S/O.BALAKRISHNAN NAMBIAR, VALLIKKAD, P.O.MUTTUNGAL VADAKARA TALUK, (DRIVER AND OWNER OF AUTORIKSHAW KL.11/E. 933- BAJAJ).** **2. NATIONAL INSURANCE COMPANY LTD., THALASSERY, POLICY NO.571102/2001 VALID UPTO 19.09.2001 TO 18/9/2002) (INSURER OF KL.11/E-933 BAJAJ AUTO).** **R1 BY ADVS. SRI.C.VALSALAN** **SRI.K.RAKESH ROSHAN R2. BY ADV. SRI.JOE KALLIATH** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 16-02-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **Mn** ## **PIUS C.KURIAKOSE & A.V.RAMAKRISHNA PILLAI, JJ** **--------------------------------------------MACA No. 137 of 2007 --------------------------------------------Dated this the 16[th] day of February 2012** ## **JUDGMENT** ## **Ramakrishna Pillai, J** **The claimants are in appeal.** **2. The appellants approached the Tribunal claiming compensation to the tune of Rs.5 lakhs on account of the death of the son of the first and second appellants in a road traffic accident occurred on 6.11.2001.** **3. Allegedly, while the deceased Sushanth was travelling by an autorickshaw, the vehicle capsized and as a result he sustained very fatal injuries to which he succumbed while undergoing treatment in the hospital. Against the aforesaid claim, the learned Tribunal awarded a sum of Rs.1,94,000/- as compensation under various heads. The adequacy of compensation awarded and the direction of the learned Tribunal exonerating the second respondent Insurance Company from paying the compensation amount are under challenge. It was found by the learned Tribunal that the second respondent Insurance Company is not liable to pay compensation as the driver of the autorickshaw was** MACA No.137 of 2007 2 **not having a valid driving licence at the relevant time.** **4. We have heard the learned counsel for the appellants and the learned counsel for the respondents.** **5. The evidence reveals that the deceased was 27 years old at the time of the accident. He was unmarried. According to the learned counsel for the appellants, the deceased was an autorickshaw driver and was earning a monthly income of Rs.9,000/-. But the learned Tribunal, for computing the compensation for loss of dependency, fixed the monthly income of the deceased at Rs.2000/-, which according to the learned counsel for the appellant is too low. We do notice that the accident had occurred in the year 2001. It is only reasonable to presume that the deceased who was aged 27 might have earned atleast Rs.2500/- per month by engaging himself. Thus, for computing the compensation for loss of dependency, we are fixing the monthly income of the deceased at Rs.2500/-. The correct multiplier, i.e. The multiplier applicable to the age group of the mother of the deceased was adopted by the learned Tribunal for computing the compensation for loss of dependency. The mother of the deceased who is the second appellant was only 55 years at the time of the accident. Thus, the learned Tribunal has adopted the multiplier 11.** MACA No.137 of 2007 3 **6. It is pointed out by the learned counsel for the respondent Insurance Company that while fixing the compensation for loss of dependency, the learned Tribunal has deducted 1/3[rd] of the amount arrived at taking into account the expenses which the deceased would have incurred for maintaining himself had he been alive. Placing reliance on the principle laid down by the Apex Court in Sarla Verma** v **Delhi Transport Corporation** (2010(2) KLT 802 SC), **it was pointed out that one half of the amount could have been deducted in consideration of the expenses which the deceased would have incurred. If the compensation for loss of dependency is recalculated fixing the monthly income of the deceased at Rs.2500/-, adopting the multiplier 13 and deducting one half as above, the compensation for loss of dependency will come to Rs.1,65,000/-. The learned Tribunal has awarded a sum of Rs.1,76,000/- as compensation for loss of dependency. Thus, we find that the compensation for loss of dependency shall stand reduced by Rs.11,000/-. Towards funeral expenses, only Rs.2,000/- was awarded by the Tribunal. We are awarding Rs.3,000/- more under that head. It is in evidence that the death occurred after five days while the deceased was undergoing treatment in the hospital. No amount was awarded by the learned Tribunal towards compensation** MACA No.137 of 2007 4 **for pain and suffering. Considering the gravity of injuries and the period of hospitalisation, we are of the view that Rs.10,000/- could have been awarded by the Tribunal for pain and suffering. Hence, we are awarding the said amount. Towards loss of love and affection, the learned Tribunal has awarded a sum of Rs.15,000/-. We are of the view that some more amount could have been awarded towards loss of love and affection. Hence, we are awarding Rs.5,000/- under that head. Under the head loss of estate, no amount has been awarded by the Tribunal. Hence we are awarding Rs.5,000/- towards that head. Thus, in total, the appellants are entitled to get an additional sum of Rs.12,000/- (Rupees Twelve Thousand only) in addition to the amount that has already been awarded by the Tribunal.** **7. We notice that the learned Tribunal has exonerated the second respondent Insurance Company from paying the compensation on the ground that the first respondent who was the owner cum driver of the autorickshaw was not having a valid driving license at the time of the accident. The learned counsel appearing for the first respondent submitted that the first respondent was holding a valid driving license at the time of the accident. But there is nothing on evidence to prove the same. The records reveal that** MACA No.137 of 2007 5 **the first respondent kept away from the Tribunal through out the proceedings. Hence, the submission now made by the learned counsel for the first respondent does not inspire confidence. It is also relevant to note that the first respondent has not chosen to file an appeal or cross objection challenging the finding of the Tribunal. However, we are of the view that the Insurance Company cannot be exonerated from the liability of paying the compensation merely because of the fact that the first respondent was not having a valid driving license. Entrusting the vehicle to an unlicenced driver is only a violation of the conditions made mention of in the policy. Hence what could have been done by the Tribunal was to direct the Insurance Company to pay the award amount and to recover the same from the first respondent who was the registered owner. Hence the exoneration of the Insurance Company from making the payment calls for a modification.** **8. In the result, the appeal is allowed as under.** **(a) The award shall stand modified and the appellants are entitled to get an additional sum of Rs.12,000/- as compensation. The additional amount awarded shall carry interest at the rate of 7.5% per annum from the date of the award.** MACA No.137 of 2007 6 **(b) The finding of the learned Tribunal exonerating the second respondent Insurance Company from paying the award amount is hereby set aside. The second respondent is hereby directed to pay the award amount to the appellant and to recover the same from the first respondent.** **Sd/- PIUS C.KURIAKOSE, JUDGE** **sd/- A.V.RAMAKRISHNA PILLAI, JUDGE** **css/ true copy** **P.A.TO JUDGE**