Case: The New India Assurance Company Limited &amp; Another Vs. Ashish Ravindra Kulkarni &amp; Others

the decision in Rajesh is not a binding precedent.(iii) While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30%, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15%. Actual salary should be read as actual salary less tax.(iv) In case the deceased was selfemployed or on a fixed salary, an addition of 40% of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25% where the deceased was between the age of 40 to 50 years and 10% where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.(v) For determination of the multiplicand, the deduction for personal and living expenses, the tribunals and the courts shall be guided by paragraphs 30 to 32 of Sarla Verma which we have reproduced hereinbefore.(vi) The selection of multiplier shall be as indicated in the Table in Sarla Verma read with paragraph 42 of that judgment.(vii) The age of the deceased should be the basis for applying the multiplier. (viii) Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs. 15,000/, Rs. 40,000/and Rs. 15,000/respectively. The aforesaid amounts should be enhanced at the rate of 10% in every three years.16. In our view, the Respondents Claimants would be entitled to future prospects in terms of clause (iii) of the said conclusions as the deceased Ravindra had a permanent job. Hence an amount of 30% of the amount calculated as the total income of the deceased by applying concerned multiplier would have to be added to the compensation. The said 30% amount towards loss of future prospects would come to Rs.12,04,524/-.17. In so far as the deductions of the amounts of House Rent Allowance and Festival Allowance are concerned, in our view, the said deductions are also not permissible. A useful reference could be made to the judgment of the Apex Court in Indira Srivastava and otherss case (supra) wherein the Apex Court has held that the benefits meant for family, as distinguished from personal benefits like conveyance allowance, etc. also form part of income. Hence the amounts paid by way of House Rent Allowance and Festival Allowance would have to be taken into consideration whilst calculating the total income of the deceased Ravindra.18. In so far as deduction of Rs.3,00,000/- which amount has been granted by the employer TATA Precision Industries, Singapore to the Respondents Claimants is concerned, the said deduction is not permissible. A useful reference could be made to the judgment of the Apex Court in Vimal Kanwars case (supra) wherein the Apex Court in the context of the salary receivable by the dependent claimant upon compassionate appointment due to victims death held that it does not come within the periphery of Motor Vehicles Act to be termed as pecuniary advantage.19. In so far as the amounts to be awarded under conventional heads i.e. for loss of consortium, funeral expenses and towards loss of care and guidance for minor children are concerned, the Apex Court in Pranay Sethis case (supra) in paragraph 54 held that the reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs.15,000/-, Rs.40,000/- and Rs.15,000/respectively. The judgment in Pranay Sethis case (supra) in so far as the said aspect is concerned was considered by the Apex Court in Magma General Insurance Co. Ltd.s case (supra). The Apex Court in the said case observed that the Motor Vehicles Act is a beneficial legislation and, in case where a parent has lost their minor child, or unmarried son or daughter, the parents are entitled to be awarded loss of consortium under the head of Filial Consortium. Parental Consortium is awarded to the children who loose their parents in motor vehicle accidents under the Act. The amount of compensation to be awarded as consortium will be governed by the principles as laid down in Pranay Sethis case (supra). The Apex Court in the said case awarded an amount of Rs.40,000/- each for loss of Filial Consortium apart from a ;sum of Rs.50,000/- each for the loss of love and affection. In view of the fact that the judgment in Magma General Insurance Co. Ltds case (supra) has considered the judgment in Pranay Sethis case (supra), we propose to follow the said judgment in the matter of awarding the sums on account of conventional heads. In view thereof the amount of Rs.3,00,000/- granted as compensation for loss of love and affection to the Respondents Claimants would have to be brought down to Rs.1,50,000/- i.e. Rs.50,000/- to each of the Respondents Claimants. In view of the special facts and circumstances of the case where the body of the deceased was brought by Air to Pune, we deem it appropriate to maintain the amount of Rs.1,00,000/- granted for funeral expenses. We also deem it appropriate to award Rs.15,000/- towards loss of estate, and Rs.1,20,000/- i.e. Rs.40,000/- to Ashish i.e. the Respondent No.1 towards Parental Consortium and Rs.80,000/- to the parents i.e. the Respondent Nos.2 and 3 towards Filial Consortium.20. Lastly coming to the rate at which the interest has been granted by the MACT, Pune, as indicated herein above, the interest to the Respondents Claimants had been granted at the rate of 6% p.a. We deem it appropriate to enhance it to 7.5% p.a.21. In that view of the matter, the above First Appeal filed by the Appellant Insurance Company is accordingly dismissed save and except to the extent of modification in respect of the amount towards loss of love and affection.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]In so far as Grounds C, E and F are concerned, it is pertinent to note that the AppellantInsurance Company has not pleaded the case sought to be urged by the said grounds in the written statement. As indicated above, the AppellantInsurance Company has not led any evidence in rebuttal. Hence in the absence of any pleadings to that effect in the written statement, the AppellantInsurance Company would not be entitled to raise the said grounds. In any event the said grounds do not fall within the statutory defences which are available to an insurer under Section 149 of the Motor Vehicles Act to the Insurer.In so far as Grounds J, L and T, which we have reproduced herein above, are concerned, it is pertinent to note that before the MACT, Pune the appointment letter as well as the salary slip of the deceased Ravindra were produced through the representative of the TATA Precision Industries, SingaporeKirti Naik (PW 2). In the absence of any contra material, the MACT was right in relying upon the said material to come to the conclusion as regards the income of the deceased Ravindra.We therefore do not find any merit in the challenge raised to the Award passed by the MACT, Pune on behalf of the Appellant5. In so far as future prospects are concerned, the same has been denied to the RespondentsClaimants on the ground that the deceased Ravindra was not a permanent employee. It is required to be noted that the deceased Ravindra was engaged as a Chief Executive Officer with TATA Precision Industries, Singapore, and it is the case of the RespondentsClaimants that the monthly salary of the deceased Ravindra was $ 11,153 Singapore dollars. The concept of temporary/permanent, in our view, cannot be made applicable to the Chief Executive Officer in a Company which is based abroad. In fact the concept may be alien to such company. It would therefore have to be held that the deceased Ravindra was a permanent employee of the said TATA Precision Industries, Singapore. In so far as the said aspect is concerned, a useful reference could be made to the judgment of the Apex Court in Pranay Sethis case (supra).In our view, the RespondentsClaimants would be entitled to future prospects in terms of clause (iii) of the said conclusions as the deceased Ravindra had a permanent job. Hence an amount of 30% of the amount calculated as the total income of the deceased by applying concerned multiplier would have to be added to the compensation. The said 30% amount towards loss of future prospects would come to Rs.12,04,524/-.In so far as the deductions of the amounts of House Rent Allowance and Festival Allowance are concerned, in our view, the said deductions are also not permissible. A useful reference could be made to the judgment of the Apex Court in Indira Srivastava and otherss case (supra) wherein the Apex Court has held that the benefits meant for family, as distinguished from personal benefits like conveyance allowance, etc. also form part of income. Hence the amounts paid by way of House Rent Allowance and Festival Allowance would have to be taken into consideration whilst calculating the total income of the deceasedview of the fact that the judgment in Magma General Insurance Co. Ltds case (supra) has considered the judgment in Pranay Sethis case (supra), we propose to follow the said judgment in the matter of awarding the sums on account of conventional heads. In view thereof the amount of Rs.3,00,000/- granted as compensation for loss of love and affection to the RespondentsClaimants would have to be brought down to Rs.1,50,000/- i.e. Rs.50,000/- to each of the RespondentsClaimants. In view of the special facts and circumstances of the case where the body of the deceased was brought by Air to Pune, we deem it appropriate to maintain the amount of Rs.1,00,000/- granted for funeral expenses. We also deem it appropriate to award Rs.15,000/- towards loss of estate, and Rs.1,20,000/- i.e. Rs.40,000/- to Ashish i.e. the Respondent No.1 towards Parental Consortium and Rs.80,000/- to the parents i.e. the Respondent Nos.2 and 3 towards Filial Consortium.20. Lastly coming to the rate at which the interest has been granted by the MACT, Pune, as indicated herein above, the interest to the RespondentsClaimants had been granted at the rate of 6% p.a. We deem it appropriate to enhance it to 7.5% p.a.21. In that view of the matter, the above First Appeal filed by the AppellantInsurance Company is accordingly dismissed save and except to the extent of modification in respect of the amount towards loss of love and affection.