IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MRS. JUSTICE K.HEMA TUESDAY, THE 22ND JANUARY 2008 / 2ND MAGHA 1929 MFA.No. 1393 of 2002() ---------------------- APPELLANT: THIRD RESPONDENT --------------------------- M/S.UNITED INDIA INSURANCE COMPANY LTD., OTAPPALAM. BY ADV. SMT.P.A.REZIYA RESPONDENTS: PETITIONERS AND RESPONDENTS 1 AND 2 ------------------------------------------------ 1. AYYADURAI C/O. ABDU, FARHANA CERAMICS, VALIYAKUNNU, VALANCHERY, TIRUR TALUK. 2. SELVI, W/O.AYYADURAI, C/O.ABDU, FARHANA CERAMICS, VALIYAKUNNU, VALANCHERY, TIRUR TALUK (FATHER AND MOTHER OF DECEASED RAMAN) 3. BABU S/O. NARAYANAN, VELAMPATTA VEEDU, OPPOSITE PANCHAYATH OFFICE, KOLLANGODE, PALAKKAD DIST. DRIVER OF THE BUS KL 9/1989. 4. SMT.ANNAMMA ABRAHAM, MANAGING PARTNER, SHORNOOR ROAD TRANSPORT, SHORNUR, PALAKKAD DIST. (R.C.OWNER OF THE BUS) BY ADV. SRI.H.BADARUDDIN THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 22/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.B.KOSHY & K.HEMA,JJ. ----------------------------------------- M.F.A.No.1393 of 2002 & M.F.A.No.151 of 2003 ----------------------------------------- Dated this the 22nd day of January, 2008 JUDGMENT Koshy, J. Two children of respondents 1 and 2 died in a motor accident caused due to the negligence of the driver of the vehicle insured by the appellant Insurance Company. The unfortunate parents filed claim petitions for compensation. The Tribunal awarded compensation of Rs.2,23,100/- each in both cases. The Insurance Company questions the quantum of compensation awarded in the case. Loss of pecuniary, loss to the family and loss of family contribution were assessed by the Tribunal as Rs.2,16,000/- in both the cases. Children were aged 1 and 4 respectively. It is true that loss of children cannot be estimated in terms of money. But, at the same time, for calculation, we have to adopt some formula. The Supreme Court in various cases held that even when claims are filed under Section 166, second schedule can be taken as the guideline in computing compensation. The yearly notional income is fixed under the second schedule as Rs.15,000/- and multiplier to be adopted for M.F.A.1393 & 151/03 2 the death of children is 15. It is true that that the claimants parents were young and if their age is taken into account, a higher multiplier can be taken. The Tribunal has taken 15 as the multiplier. One-third of the income has to be deducted for personal expenses and only balance can be given. Therefore, if Rs.10,000/- is the multiplicand, the total amount of compensation payable will be Rs.1,50,000/-. The Tribunal has awarded Rs.2,16,000/-. Thus, the Tribunal has awarded an excess amount of Rs.66,000/-. In both the cases no amount was awarded for loss of love and affection. We are of opinion that the young parents lost their small children. For loss of love and affection, Rs.8,000/- each should be awarded to the parents. Therefore, the claimants are entitled to Rs.16,000/- on that count. The amount awarded for pain and suffering (Rs.5,000), transportation charges (Rs.100) and funeral expenses (Rs.2,000) require no change. The claimants are entitled to only Rs.1,73,100/- with interest and cost at the rate awarded by the Tribunal. Both awards are modified accordingly. The appellant Insurance Company should deposit the balance amount due after deducting the amount already deposited along with cost of Rs.1,500/- each awarded as a condition for condoning the delay as expeditiously as possible, in any event, M.F.A.1393 & 151/03 3 within three months from the date of receipt of a copy of this judgment. The parties to bear their costs in the appeal proceedings. The award is modified to the above extent and the appeals are allowed, partly. J.B.KOSHY, JUDGE K.HEMA, JUDGE vgs. M.F.A.1393 & 151/03 4 J.B.KOSHY & K.HEMA, JJ. ------------------------------ M.F.A.No.1393 of 2002 & M.F.A.No.151 of 2003 ------------------------------ JUDGMENT 22.1.2008