High Court of KeralaSingle JudgeAppeal allowed; Tribunal's award modified and c...

Reliance General Insurance Co. Ltd. v. Yesodharan and Others

Case / Petition Number:MACA.No.913/2016

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Basant Balaji
Judgment Date
2022-07-19
Court Decision / Holding
The appeal is allowed and the award of the Tribunal is modified and the compensation is re-fixed as shown above.
Final Disposition
Appeal allowed; Tribunal's award modified and compensation re-fixed as per the modified heads and amounts.

Parties to the Case

Appellants / Petitioners

  • Reliance General Insurance Co. Ltd.

Respondents

  • Yesodharan
  • Sobhana
  • Neethu P.S.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. George Cherian (Sr.)
  • • Smt. Latha Susan Cherian
  • • Smt. K.S. Santhi

Counsels for Respondents

  • • Adv A.N. Santhosh

Case Synopsis & Summary

Reliance General Insurance Co. Ltd. appeals from the Motor Accidents Claims Tribunal, Pathanamthitta’s award in O.P.(M.V.) No.1524 of 2012 arising from a road accident on 11.11.2012 on NH‑47, where a tourist bus collided with a truck, causing severe injuries to the deceased and the death of the respondents’ son. The tribunal awarded Rs. 43,57,000 with 9% interest to respondents 1–3. The 1st and 2nd respondents were ex‑party; the 3rd respondent insurer contested liability on policy conditions and alleged the driver lacked a valid licence and was not an employee of the insured. The insurer argued that the tribunal fixed the deceased’s income at Rs. 25,000 per month while Ext. A24 shows Rs. 18,000; as the deceased was under 40 and self‑employed, future prospects should be capped at 40% per Pranay Sethi. The respondents argued the income was Rs. 25,000, supported by the mother’s deposition that the deceased sought better employment and that the company offered Rs. 30,000 per month with potential future rise. Ext. A24 was relied upon to fix Rs. 18,000. The High Court accepted Rs. 18,000 as income, applied 40% future prospects, and recalculated dependency to Rs. 27,21,600. Funeral expenses were reduced to Rs. 16,500; loss of consortium awarded Rs. 88,000; loss of love and affection and pain and suffering were adjusted; loss of estate fixed at Rs. 16,500 with escalation. The appeal is allowed and the tribunal’s award modified accordingly.

Legal Doctrines & Maxims

  • 40% cap on future prospects for self-employed individuals below 40 years (Pranay Sethi)
  • Pain and suffering cannot be awarded in death cases (Sarla Verma)
  • Loss of consortium cannot be awarded together with loss of love and affection in death cases (principle cited in the judgment)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant insurer contended that the tribunal fixed the deceased’s income at Rs.25,000/month though Ext. A24 shows Rs.18,000, and relied on the Pranay Sethi decision to cap future prospects at 40% for a self‑employed person under 40, opposing the tribunal’s 50% uplift. It argued the income and the future prospects needed recalibration. It also challenged the tribunal’s reliance on Ext. A24 and asserted policy condition breaches and licensing issues should affect liability.

Contentions of Respondents

Respondents argued the Tribunal’s determination of Rs.25,000/month was supported by the mother’s deposition and the company’s offer of Rs.30,000 with potential future increases. They claimed Ext. A24 reflects the deceased’s prior earnings and that a higher income justification exists given better opportunities in Bangalore. They urged no interference with the award since the compensation suitably addressed dependency, funeral, and other heads.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
National Insurance Co. Ltd. v. Pranay Sethi(2017) 16 SCC 680PositiveCourt applied the 40% cap on future prospects from Pranay Sethi, reducing the Tribunal’s 50% uplift to 40%.
Sarla Verma (Smt) and Others v. Delhi Transport Corporation and Another(2009) 6 SCC 121PositiveCourt relied on Sarla Verma to reject independent awards for pain and suffering in a death case.

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Extracted Judgment Text

Exact text extracted from official judgment records.

MACA.No.913/2016 1 ``` IN THE HIGH COURT OF KERALA AT ERNAKULAM ``` **==> picture [47 x 7] intentionally omitted <==** ``` THE HONOURABLE MR.JUSTICE BASANT BALAJI ``` ``` TUESDAY, THE 19[TH] DAY OF JULY 2022 / 28TH ASHADHA, 1944 ``` **==> picture [146 x 9] intentionally omitted <==** ``` (AGAINST THE AWARD DATED 08.09.2015 IN OP(MV)No.1524/2012 OF ADDITIONAL MOTOR ACCIDENTS CLAIMS TRIBUNAL - IV, PATHANAMTHITTA) ``` ## **`APPELLANT/3[RD] RESPONDENT:`** ``` RELIANCE GENERAL INSURANCE CO. LTD., PATHANAMTHITTA, REPRESENTED BY ITS DEPUTY MANAGER, REGIONAL OFFICE, ERNAKULAM. BY ADVS. SRI.GEORGE CHERIAN (SR.) SMT.LATHA SUSAN CHERIAN SMT.K.S.SANTHI ``` ## **`RESPONDENTS/CLAIMANTS:`** ``` 1YESODHARAN, S/O.VELAYUDHAN, PALLIYIL VEEDU, KULAKKADA EAST.P.O, NOW RESIDING AT ROBIN VILLA, KUDASSANADU.P.O, POOZHIKKADU, PIN-689 512. 2SOBHANA, W/O.YESODHARAN, PALLIYIL VEEDU, KULAKKADA EAST.P.O, NOW RESIDING AT ROBIN VILLA, KUDASSANADU.P.O, POOZHIKKADU, PIN-689 512. 3NEETHU.P.S, D/O.YESODHARAN, PALLIYIL VEEDU, KULAKKADA EAST.P.O, NOW RESIDING AT ROBIN VILLA, KUDASSANADU.P.O, POOZHIKKADU, PIN-689 512. BY ADV SRI.A.N.SANTHOSH ``` ``` THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 19.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` MACA.No.913/2016 2 ## **JUDGMENT** (Dated: 19[th] July, 2022) The 3[rd] respondent in O.P.(M.V.) No.1524 of 2012 on the files of the Motor Accidents Claims Tribunal, Pathanamthitta is the appellant (the parties are referred to as they are arrayed in the original petition). 2. The appeal is filed aggrieved by the quantum of compensation awarded to petitioners/respondents Nos. 1 to 3 in the road accident which occurred on 11.11.2012 at about 01.00 a.m. The deceased was travelling in a tourist bus bearing Reg.No.KA-01/AB-5377 from Bangalore to Adoor, through the Salem-Kovai NH-47 road. When the bus reached at Perundurai, the first respondent drove the bus in a rash and negligent manner as a result of which the bus hit the back side of a Truck, bearing Reg.No.TN-52/9946 moving in front of the bus. Due to the impact of the hit, the deceased and co- MACA.No.913/2016 **==> picture [9 x 8] intentionally omitted <==** passengers sustained severe injuries. On the way to the hospital, the son of respondents 1 and 2 succumbed to the injuries. He was a Civil Engineer in Devasilpi Associates, Adoor, and he had secured better employment in Bangalore and was returning when the fatal accident occurred. 3. 1[st] and 2[nd] respondents remained ex-parte. The 3[rd] respondent insurance company alone filed a written statement contending that the 3[rd] respondent is not liable to indemnify the insured since the owner of the vehicle had violated the policy conditions. It was also contended that the first respondent was not having a valid driving licence at the time of the accident and he was not an employee of the insured at the material time. The insurance coverage of the vehicle was admitted. The Tribunal relying on Exts.A1 to A26 awarded compensation of Rs.43,57,000/- with 9% interest from the date of the petition. MACA.No.913/2016 4 Aggrieved by the said award, the insurance company has filed this appeal. 4. Adv.George Cherian, learned senior counsel for the appellant/insurance company submits that the Tribunal has without any evidence taken the income of the deceased as Rs.25,000/- per month, wherein Ext.A24 is a certificate issued from the Devasilpi Associates, Adoor where he was working shows the income is Rs.18,000/- per month. Since he was in the age group of below 40 years and was self-employed, the Tribunal has awarded 50% increase in future prospects which is also against the decision reported in _**National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680]**_ . The maximum increase in percentage that can be awarded as future prospects is 40% submits the senior counsel. 5. Adv.A.N.Santhosh, learned counsel for the respondents submits that the Tribunal has rightly taken the MACA.No.913/2016 5 income as Rs.25,000/-, taking into consideration the deposition of the mother of the deceased, in which she has stated that, her son has gone to Bangalore in search of better employment and obtained a better job in Indi Info Pvt. Ltd., as a Civil Engineer and while returning home to take the articles to be taken back to Bangalore, he met with the accident and died. It was also stated that the company had offered an amount of Rs.30,000/per month with accommodation. She has also a case that the company has agreed that after six months of employment his income would be increased to Rs.45,000/- per month. Therefore, he prays that no grounds to interfere with the award of the Tribunal. 6. Ext.A24 produced by the claimants, which is the certificate issued by Devasilpi Associates, Adoor, on 05.11.2012, the date on which he resigned from the said firm. It is also submitted by the mother before the Tribunal that he MACA.No.913/2016 6 was earning the said income while he was working in Devasilpi Associates before he got employment in Bangalore. Though it was not proved before the Court, the Court below has taken into consideration the academic qualification of the deceased, the fact that he had a chance to get a better job and higher salary in Bangalore and fixed the income as Rs.25,000/- per month. When the document showing the salary as Rs.18,000/- per month is produced by the claimants before the Tribunal, then without any other documentary evidence, the Tribunal was not justified in fixing the amount as Rs.25,000/- solely relying on the oral evidence of the mother of the deceased. When Ext.A24 is before the court, the Tribunal ought to have fixed the monthly income to Rs.18,000/- per month, as that was the only evidence before the court to prove the salary. Moreover, the decision reported in _**Pranay Sethi**_ future for a _(supra),_ prospects self-employed MACA.No.913/2016 7 person below the age of 40 years, the maximum amount for future prospects can be awarded is only 40%, whereas the Tribunal has awarded 50% for future prospects. 7. In view of the matter, I am of the opinion that the Tribunal ought not to have fixed the monthly notional income as Rs.25,000/- and should have fixed the monthly income as Rs.18,000/- taking into consideration of Ext.A24. The amount shown in Ext.A24 is accepted and is taken by this Court for computation. When the monthly income is taken as Rs.18,000/-, 40% is to be added as future prospects. Thus the monthly income will be Rs.25,200/- per month. In such a case, the calculation would be 25200x12x18x1/2, which comes to Rs.27,21,600/-. So, the loss of dependency awarded by the Tribunal has Rs.40,50,000/- is refixed as Rs.27,21,600/-. 8. As far as the funeral expense is concerned, the Tribunal has awarded a sum of Rs.25,000/-. Going by the MACA.No.913/2016 **==> picture [9 x 8] intentionally omitted <==** decision of the Apex Court in _**Pranay Sethi**_ (supra), it has to be scaled down to Rs.15,000/-. 10% escalation for three years. So the amount is refixed as Rs.16,500/- 9. For loss of consortium, the Tribunal did not grant any amounts. Petitioners 1 and 2 being the father and mother of the deceased are entitled to the consortium at the rate of Rs.40,000 + 10% (44,000x2) each on that head. So the claimants are entitled to Rs.88,000/-. When loss of consortium is awarded, loss of love and affection cannot be awarded, hence the amount of Rs.1,50,000/- awarded for loss of love and affection is set aside. 10. Regarding loss of estate, the Tribunal has awarded Rs.1,00,000/-, the maximum that can be awarded is Rs.15,000/-. Hence, that is also modified and the loss of estate is fixed to Rs.15,000 + 10%. Escalation for three years which amounts to Rs.16,500/-. MACA.No.913/2016 9 11. Pain and suffering are concerned, the claimants claimed Rs.30,000/- and the entire amount was awarded by the Tribunal. In view of the decision reported in _**Sarla Verma (Smt) and Others v. Delhi Transport Corporation and Another [(2009) 6 SCC 121]**_ in a death case, pain and sufferings cannot be awarded. Hence, the amount awarded under the head pain and suffering is also set aside. Accordingly, the following modifications are made to the ## award passed by the Tribunal: |Sl.<br>No.|Head of Claim|Amt. Awarded by<br>Tribunal (Rs.)|Amt. fixed by this<br>Court (Rs.)| |---|---|---|---| |1.|Loss of dependency|40,50,000/-|27,21,600/-| |2.|Funeral expenses|25,000/-|16,500/-| |3|Loss of consortium|--|88,000/-| |3.|Loss of love and affection|1,50,000/-|--| |4|Loss of estate|1,00,000/-|16,500/-| |5|Pain and sufferings|30,000/-|--| MACA.No.913/2016 10 The appeal is allowed and the award of the Tribunal is modified and the compensation is re-fixed as shown above. _Sd/-_ **BASANT BALAJI, JUDGE** ss