Shakti Devi vs New India Insurance Co. Ltd. & Anr

A mother who lost her 22-year old son in a motor accident is in appeal, by special leave, aggrieved by the inadequate compensation awarded to her. The appellant and her husband Sachidanand Sinha lived at Badom Bazaar in Hazaribagh and their son Pravin Kumar Sinha resided with them. Pravin Kumar Sinha had 1 done B. Com (Honours) and was earning about Rs.1000/- per month from a general store being run from the house. On February 26, 1991 Pravin Kumar Sinha and his father travelled in a bus (UP 72-9015) to Ranchi. When the bus reached near Karmahi forest, a truck (PAX 4785) coming from the opposite direction collided with it. Both vehicles at that time were being driven rashly and negligently. As a result of the accident, two persons died on the spot and appellant's son Pravin Kumar Sinha suffered grievous injuries. He was taken to Nawjiwan hospital, Tumbagara, Manika where he died after few days.

2. The appellant and her husband filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 (for short, `the 1988 Act') before the Motor Vehicle Accident Claims Tribunal, Palamau, Daltonganj (for short, `the Tribunal') claiming compensation for the death of their son in the sum of Rs. 2 lacs from the owners and insurers of the two vehicles. The appellant's husband died during the pendency of claim petition and, accordingly, his name was struck off.

3. The owners of the two vehicles who were impleaded as opposite party Nos. 1 and 2 neither appeared nor filed any written statement. The insurance companies filed separate written statement and contested the claim petition. The opposite party no. 3 - the insurer of the bus - blamed the truck for the accident while the opposite party no. 4 - insurer of the truck - stated that it was due to the rash and negligent driving of the bus driver that the accident occurred.

4. The Tribunal held that the claimant's son died in the accident caused by the bus (UP 72-9015) and the truck (PAX 4785) due to the negligent driving by the drivers of the vehicles. As regards the quantum of compensation, the Tribunal pegged the earning of the deceased at Rs. 1000/- per month and after deducting personal expenses to the extent of 1/3rd, fixed the annual dependency at Rs. 7920/-. The Tribunal applied the multiplier of 8 and held that the compensation so computed would come to Rs. 63,360/-. The Tribunal then made it a round figure of Rs. 60,000/- and after adjusting Rs. 25,000/- which was paid to the claimant towards no- fault liability held that the claimant was entitled to a further sum of Rs. 35,000/- and awarded her simple interest @ 10% p.a. from the 3 date of the award dated June 6, 2000 till its realization. The Tribunal apportioned the award equally between the insurance companies.

13. The appeal is allowed to the above extent. The enhanced compensation shall be paid by the insurance companies to the appellant with the simple interest of 10% per annum from the date of 11 Judgment of the Tribunal (June 6, 2000) till the actual payment apportioned equally in the manner directed by the Tribunal within two months from today. The parties shall bear their own costs.

(R.M. Lodha) NEW DELHI, NOVEMBER 9, 2010.