FAO No.5712 of 2002 -1- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.5712 of 2002 Date of Decision.20.12.2010 National Insurance Company Ltd., SCO 337-340, Sector 35-B, Chandigarh through its Regional Manager ......Appellant Versus Naresh Kumar son of Shri Ram Sarup, resident of village, Hassanpur and others ......Respondents 2. FAO No.3014 of 2002 Naresh Kumar son of Shri Ram Sarup, resident of village Hassanpur, Tehsil and District Karnal ......Appellant Versus Anil Kumar son of Shri Dhania Ram, Harijan and others ......Respondents Present: Mr. Neeraj Khanna, Advocate for the appellant in FAO No.5721 of 2002 and for respondent No.3 in FAO No.3014 of 2002. Mr. Ashit Malik, Advocate for the appellant in FAO No.3014 of 2002 and for respondent No.1 in FAO No.5721 of 2002. Mr. V. Ramswaroop, Advocate for the Oriental Insurance Company. CORAM:HON'BLE MR. JUSTICE K. KANNAN 1. Whether Reporters of local papers may be allowed to see the judgment ? 2. To be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? -.- K. KANNAN J.(ORAL) 1. The appeal in FAO No.5721 of 2010 is by the insurance company contending that they were not the insurer and the liability cast on it was erroneous. FAO No.3014 of 2002 is the appeal by the FAO No.5712 of 2002 -2- claimants seeking for enhancement of compensation on the ground that the award of compensation for Rs.1,50,000/- when he had suffered an amputation of his leg was grossly low. I passed an independent order directing impleadment of the Oriental Insurance Company and it has come through the copy of the policy produced by the Branch Manager that the offending vehicle had been insured only with the Oriental Insurance Company. The Oriental Insurance Company has now been made as a party and therefore, the liability cast on the appellant in FAO No.5721 of 2002 is vacated and the liability shall be on the Oriental Insurance Company. It is learnt that the appellant has satisfied the award to the claimant to the extent to which the Tribunal had provided for and the counsel pleads for a right of recovery against the Oriental Insurance Company. The same is granted and the Oriental Insurance Company shall be liable to indemnify the appellant-insurance company to the extent to which they have been indemnified by the award. 2. As regards the claim for enhancement of compensation, the Tribunal has granted Rs.60,000/- for medical bills towards medical expenses, Rs.40,000/- for permanent disability, Rs.20,000/- for pain and suffering, Rs.10,000/- for special diet and Rs.20,000/- for loss of earnings. He was said to be earning Rs.1500/- per month. He claimed that he was also getting Rs.25/- per day as daily allowance. I will take on average his monthly income as Rs.2,000/- and the amputation that was carried out nearly 5 years after the accident to have resulted in 70% loss of earning capacity. He was 25 years of age and I will, therefore, adopt a multiplier of 18 and take the total loss of earning as FAO No.5712 of 2002 -3- 2000x12x70%x18=Rs.3,02,400/-. The loss of earning determined by the Tribunal at Rs.20,000/- will be taken as loss of past earning and shall be retained. The Tribunal has provided for permanent disability at 40,000/- which I will raise by another Rs.35,000/- towards loss of amenities of life for a young person, who had lost his leg. Other heads of claim shall be retained. This would mean an additional amount of Rs.3,37,000/-. Normally interest is awarded for a claim and it is statutorily provided under Section 171 of the Motor Vehicles Act. The award of interest is in some manner a recompense for the delay involved in settling the claim from the date of accident and it shall be a normal consequence wherever a Court orders compensation. In this case, the claimant had impleaded the National Insurance Company although the insurance company was taking up a plea in defence at all times that there was no policy of insurance to cover the risk for any damage caused by the offending vehicle. The claimant must himself hold the responsibility for impleading the insurance company and the Oriental Insurance Company was added as a party only before this Court. The liability of payment of interest shall, therefore, arise only from the date of impleadment of the insurance company in this Court which was done on 29.11.2010. For the additional amount of the award passed through this order, there shall be interest @7.5% from 29.11.2010. 3. The appeals are allowed to the above extent. (K. KANNAN) JUDGE December 20, 2010 Pankaj*