High Court of KeralaSingle JudgeAppeal allowed; enhanced compensation and depos...

Valliyammal and others v. United India Insurance Co. Ltd.

Case / Petition Number:MACA No.2164 of 2009

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A. Badharudeen
Judgment Date
2022-07-15
Court Decision / Holding
Appeal allowed. Enhanced compensation to Rs.6,17,060 with 7% interest from the date of petition to deposit/realisation, excluding 162 days during which interest had been disallowed. The insurer is directed to deposit the amount in the appellants’ names in the ratio 50:25:25 within two months from today; upon deposit, the appellants may be released.
Final Disposition
Appeal allowed; enhanced compensation and deposit ordered.

Parties to the Case

Appellants / Petitioners

  • Valliyammal, W/o Chamikutty Achari
  • V.C.Geetha, W/o. Maniyan T.A.
  • V.C.Ambili, W/o Suresh Babu

Respondents

  • P.V. Vasanthi
  • Rajmohan
  • UNITED INDIA INSURANCE CO. LTD.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri A.N. Santhosh

Counsels for Respondents

  • • Sri P.K. Manoj Kumar

Case Synopsis & Summary

This is a Motor Accident Claims Appeal (MACA) arising from an award of the Motor Accidents Claims Tribunal, North Paravur, in O.P.(MV) No.918/2004. The appellants, Valliyammal and two others, challenged the Tribunal’s award of Rs.1,05,040 on the death of Girish who died following a road accident involving a mini lorry. The Tribunal accepted certain income and evidence but did not grant several conventional heads of compensation under the Pranay Sethi framework, nor did it use the postulated multiplier appropriate for a 27-year-old deceased, resulting in a modest compensation. The destruction of part three records during 2016 was noted and criticized, with direction to the Tribunal to initiate disciplinary action against responsible personnel. On merits, the High Court applied the Ramachandrappa multiplier rule (for a young deceased) and the Pranay Sethi conventional heads, recalculating monthly loss of income as Rs.6,300 (Rs.4,500 plus 40%), applying a 17-year multiplier and 50% deduction, yielding Rs.5,62,560 as loss of dependency. Conventional heads—loss of consortium (Rs.40,000), loss of estate (Rs.15,000), and enhanced funeral/postmortem expenses—were awarded, while amounts for love and affection (Rs.7,500) and pain and sufferings (Rs.5,000) were reduced in light of AIR 2020 SC 3076. The Court ultimately allowed the appeal, awarding enhanced compensation of Rs.6,17,060 with 7% interest, directing the insurer to deposit the amount in the appellants’ names in a 50:25:25 ratio within two months.

Legal Doctrines & Maxims

  • Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. – multiplier rule for loss of dependency (2011) 13 SCC 236
  • National Insurance Co. Ltd. v. Pranay Sethi & Ors. – conventional heads of compensation (2017) 16 SCC 650
  • AIR 2020 SC 3076 – reduction/restriction of certain heads (loss of love and affection, pain and sufferings)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contend that the Tribunal erred in fixing the deceased’s monthly income at Rs.2,000 and applying an inadequate multiplier. Relying on the Ramachandrappa multiplier rule (2011) 13 SCC 236, they urge a higher monthly income (Rs.4,500) and a 17-year multiplier for a 27-year-old deceased, resulting in higher dependency loss (loss of dependency). They urge grant of conventional heads under National Insurance Co. Ltd. v. Pranay Sethi & Ors. and contend the lower court failed to award these heads, including loss of consortium, loss of estate and enhanced funeral expenses. They rely on updated precedents to urge full compensation and adjustments to the postmortem/ funeral claims. Respondents: The insurer defends the Tribunal’s award as fair and contends against inflated income, arguing that evidence does not support higher sums and that the conventional heads were either already considered or not fully substantiated; it also invokes AIR 2020 SC 3076 to limit certain heads and to resist excessive enhancement.

Contentions of Respondents

The insurer’s stance is to maintain the Tribunal’s modest award, asserting no basis to significantly elevate compensation; it argues against reliance on destroyed part-three records and maintains that the evidence supported the lower figure. It concedes policy coverage for the vehicle but highlights the need for careful calculation and compliance with statutory precedents.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.(2011) 13 SCC 236PositiveUsed to apply the multiplier rule for loss of dependency in death claims.
National Insurance Co. Ltd. v. Pranay Sethi & Ors.(2017) 16 SCC 650PositiveUsed for granting conventional heads like loss of consortium, loss of estate, funeral expenses.
United India Insurance Co. Ltd. v. Satinder KaurAIR 2020 SC 3076PositiveApplied to reduce love-and-affection and pain-and-sufferings awards per the decision.

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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 A. BADHARUDEEN** **FRIDAY, THE 15[TH] DAY OF JULY 2022 / 24TH ASHADHA, 1944** **MACA NO. 2164 OF 2009** **AGAINST THE AWARD DATED 06/11/2008 IN O.P.(MV)NO.918/2004** **OF MOTOR ACCIDENT CLAIMS TRIBUNAL, NORTH PARAVUR** ## **APPELLANT/PETITIONER :** **1 VALLIYAMMAL, W/O.CHAMIKUTTY ACHARI, VELAM PARAMBIL HOUSE, METHALA, KODUNGALLOOR.** - **2 V.C.GEETHA, W/O. MANIYAN T.A., VELAM PARAMBIL HOUSE, METHALA, KODUNGALLOOR.** **3 V.C.AMBILI, W/O. SURESH BABU, VELAM PARAMBIL HOUSE, METHALA, KODUNGALLOOR.** **BY ADV SRI.A.N.SANTHOSH** ## **RESPONDENTS/RESPONDENTS :** - **1 P.V.VASANTHI, W/O.RADHAKRISHNAN, KALATHIL PARAMBIL HOUSE, JANAKI VILASAM, KEDAMANGALAM, N. PARAVUR.** - **2 RAJMOHAN, S/O.RAGHAVAN, VALLYKKAL HOUSE, KUNJITHAI, VADAKKEKARA.** - **3 UNITED INDIA INSURANCE CO. LTD., MUNCIPAL BUILDING, N. PARAVUR. BY SRI.P.K.MANOJ KUMAR** **THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 15.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** MACA No.2164 of 2009 **==> picture [27 x 8] intentionally omitted <==** ## **MACA No.2164 of 2009** **-----------------------------------------** ## **J U D G M E N T** This appeal arises out of award dated 06.11.2008 in O.P.(MV)No.918 of 2004 on the file of the Motor Accidents Claims Tribunal, North Paravur. The appellants herein are the petitioners before the Tribunal. Respondents herein are the respondents before the Tribunal. 2. Heard the learned counsel for the appellants as well as the learned Standing Counsel appearing for the insurance company. 3. Brief facts of the case are as follows; The allegation of the appellants is that on MACA No.2164 of 2009 **==> picture [27 x 8] intentionally omitted <==** 31.05.2004, one Girish while travelling as a pillion rider on a motorcycle bearing registration No.KL 8/F-9623 along the Vypeen-Munambam road and when he reached at Kodungassery, a mini lorry bearing registration No.KL 7/AC 4404 driven by the second respondent hit on the said motorcycle. Due to the impact of hit, Girish sustained fatal injuries and he died on the same day. 4. R3 filed written statement disputing the accident and negligence. At the same time, quantum of compensation also was disputed, while admitting policy to the vehicle involved in the accident. 5. The Tribunal examined PW1 and marked Exts.A1 to A6 on the side of the petitioners. No evidence let in by the respondents. Thereafter, as MACA No.2164 of 2009 **==> picture [27 x 8] intentionally omitted <==** against claim of Rs.8,00,000/-, Rs.1,05,040/- was granted by the Tribunal along with interest at the rate of 7%. 6. In this case, on perusal of the lower court records, the index forwarded from the Tribunal would indicate that part three records including documents in this case were destructed during 2016. It seems that destruction of part three records in this case where, appeal has been filed during 2009 itself, is a matter of serious concern and therefore, the said aspect is seriously taken note of and persons responsible for the same should be traced out and disciplinary action shall be proceeded. Therefore, the Motor Accidents Claims Tribunal, North Paravur is directed to initiate proceedings against the persons MACA No.2164 of 2009 ..5.. responsible for destruction of part three records in this case and report compliance of the same within a period of six weeks from today to the Registry of this Court. 7. Coming to the merits of this case, since this is a case of death, calculation based on the monthly income following the ratio in [(2011) 13 SCC 236], **Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd.** , where the age of the deceased is not disputed, alone is sufficient to decide this appeal. Therefore, appeal can be disposed of even without part three records. Accordingly, this appeal being considered on merits. 8. It is argued by the learned counsel for the appellants that the Tribunal fixed the monthly income of the deceased at Rs.2,000/-, though the MACA No.2164 of 2009 **==> picture [27 x 8] intentionally omitted <==** appellants claimed the same at Rs.5,000/-. It is not in dispute that following the ratio in **Ramachandrappa'** s case (supra), Rs.4,500+40% addition in the case of the deceased, who was aged 27 years (below 30 years) at the time of the accident to be taken for calculating the loss of disability income. The multiplier applied by the Tribunal relying on the age of the deceased is not the law now prevailing and therefore, the multiplier also shall be 17. No doubt, deduction is 50%. Therefore, the loss of dependency income is recalculated as under; 4500+40%=6,300/- 6,300x12x17/2=6,42,600/- Out of which, Rs.80,040/- was granted by the Tribunal. Rs.6,42,600-80,040= **5,62,560/-** more is MACA No.2164 of 2009 ..7.. granted under the head loss of dependency income. 9. Traditional and conventional heads following the ratio in [2017 16 SCC 650], **National Insurance Company Ltd. v. Pranay Sethi & Ors.** also must be granted in this case. In this matter, the first appellant, the mother is entitled to get loss of consortium amounting to Rs.40,000/-. Hence, **Rs.40,000/-** is granted towards loss of consortium. In this matter, towards loss of estate **Rs.15,000/-** is granted, since no amount granted by the Tribunal under this head. Only Rs.5,000/- is granted by the Tribunal under the head postmortem, transportation and funeral expenses. Therefore, **Rs.12,000/-** more is granted under the head funeral expenses, treating Rs.3,000/- out of Rs.5,000/- towards funeral expenses. MACA No.2164 of 2009 **==> picture [27 x 8] intentionally omitted <==** 10. In this context, the learned counsel for the insurance company submitted that Rs.7,500/granted by the Tribunal under the head loss of love and affection and Rs.5,000/- granted under the head pain and sufferings are liable to be reduced, since the same are impermissible in view of the decision in [AIR 2020 SC 3076], **United India Insurance Co.Ltd. v. Satinder Kaur** . Therefore, Rs.12,500/-(7,500+5,000) stands reduced. In the result, this appeal is allowed. It is ordered that the appellants are entitled to get enhanced compensation to the tune of **Rs.6,17,060/-** (Rupees Six lakh Seventeen Thousand and Sixty only) at the rate of 7% interest granted by the Tribunal from the date of petition till the date of deposit or realisation MACA No.2164 of 2009 **==> picture [27 x 8] intentionally omitted <==** excluding the period of 162 days wherein, grant of interest was specifically disallowed by the order in C.M.Application No.1 of 2009(2529/2009) dated 08.11.2021. The insurance company is directed to deposit the same in the name of the appellants in the ratio 50:25:25(among appellants 1 to 3) within two months from today. On deposit, the appellants can release the same. Sd/- **A.BADHARUDEEN, JUDGE** rkj