THE HONOURABLE SRI JUSTICE N.V. RAMANA AND THE HONOURABLE SRI JUSTICE P. DURGA PRASAD M.A.C.M.A. No. 1137 of 2005 JUDGMENT: (Per Hon’ble Sri Justice N.V. Ramana) M/s. Oriental Insurance Company Limited filed the present appeal against the order and decree dated 14.02.2005 passed in O.P. No. 151 of 2003 on the file of the I Additional District Judge’s Court (Motor Accidents Claims Tribunal), East Godavari District, Rajahmundry, contending that the compensation awarded thereunder to respondent Nos. 1 to 4 herein, claimants in the O.P., is excessive and needs to be reduced. Respondent Nos. 1 to 4 herein filed the above O.P., claiming compensation of Rs.24,00,000/- from the appellant and respondent Nos.5 and 6 herein, for the death of one John Victor in a motor accident that occurred on 14.08.2002. Respondent No.1 is the wife, respondent Nos. 2 and 3 are the children and respondent No. 4 is the mother of the deceased. It was their case that on 14.08.2002 at about 7.00 p.m., the deceased was proceeding towards Rajahmundry from Jaggampeta on his Hero Honda Splendor motorcycle and when he reached Uppalapadu Village, the lorry bearing No. KA 01 A3413 coming in the opposite direction and driven by respondent No.5 herein in a rash and negligent manner, dashed against his motorcycle, due to which he sustained grievous injuries all over the body and died on the spot. The claimants contended that the deceased was aged about 42 years at the time of the accident and working as Hostel Warden in Social Welfare Department at Rajanagaram and drawing a monthly salary of Rs.9,500/- apart from other allowances. They claimed compensation of Rs.24,00,000/- for the death of the deceased in the motor accident, payable by the appellant-insurance company and respondent Nos.5 and 6, who are the driver and owner of the crime vehicle respectively. Before the Tribunal, respondent Nos. 5 and 6 herein, driver and owner of the crime vehicle respectively, remained ex parte. The appellant herein filed counter resisting the claim of the claimants and prayed for dismissal of the petition. The claimants examined P.Ws.1 to 3 and marked Exs.A1 to A13 on their behalf, while no oral evidence was adduced on behalf of the appellant, but Ex.B1 policy was marked. The Tribunal, having framed the issues and having considered the stand of the parties and the oral and documentary evidence adduced by them, held that the accident occurred due to the rash and negligent driving of the crime lorry by respondent No.5 and hence he and respondent No.6 and appellant, the owner and insurer of the crime vehicle respectively, are jointly and severally liable to pay compensation to the claimants. The Tribunal awarded compensation of Rs.19,20,000/- to the claimants with interest at 9% per annum from the date of petition till the date of deposit of the amount, and apportioned the same amongst the claimants as detailed in the order under appeal. The Tribunal further directed the appellant to deposit the compensation amount within thirty days from the date of award, and accordingly allowed the petition in part with proportionate costs. Heard the counsel for the appellant and the counsel for respondent Nos.1 to 4- claimants and perused the order under appeal and other material available on record. As can be seen from the record, the deceased was working as Grade-II Warden at Social Welfare Boys Hostel at Rajanagarm and was drawing salary of Rs.9,559/- per month, as on the date of accident. As per the service register of the deceased, he was 47 years old by the date of accident. Though the Tribunal considering the future prospects of the deceased and promotions and increase in his salary he would have got had he been alive, felt it appropriate to fix the monthly income of the deceased at Rs.18,000/- per month, the fact remains, as per the decision of the apex Court in Sarla Verma v. Delhi Transport Corporation[1], if the deceased had a permanent job and his age was 40 to 50 years, an addition of 30% of actual salary to the actual salary income of the deceased can be made towards future prospects. Since the deceased had a permanent job and was aged 47 years at the time of the accident, an addition of 30% of actual salary to the actual salary of the deceased can be made and on such addition, his salary would come to Rs.12,426/- per month i.e. Rs.1,49,112/- per annum. As the deceased had four dependants, in view of the decision i n Sarla Verma case, the deduction towards his personal expenses should be 1/4th and on such deduction, his contribution to the family would come to Rs.1,11,834/- per annum. The age of the deceased was 47 years at the time of accident, as per his service register, and the appropriate multiplier applicable, as per the decision in Sarla Verma case, is ‘13’. If the multiplicand of Rs.1,11,834/- is multiplied by 13, the loss of dependency to the family would come to Rs.14,53,842/- . In addition, as per Sarla Verma case, claimant No.1, who is the widow of the deceased, is entitled to Rs.10,000/- towards loss of consortium and the claimants are entitled to Rs.10,000/- towards loss of estate and Rs.5,000/- towards funeral expenses. Thus, in all, the claimants are entitled to the compensation of Rs.14,78,842/- and in view of the decision in Sarla Verma case, the said amount shall carry interest at 6% per annum from the date of petition till the date of realization. Accordingly, we allow the appeal in part, with the reduction in the compensation as noted above. No order as to costs. _____________ N.V. RAMANA, J _________________ P. DURGA PRASAD, J 6th September, 2011 IBL [1] (2009) 6 SCC 121