Case: SURESHCHANDRA BAGMAL DOSHI  Vs. THE NEW INDIA ASSURANCE CO. LTD

2. It is not necessary to go into the details of the facts, as those are not really liable to be examined in view of the limited controversy before us. The claim was laid on the basis that the deceased daughter was working in the company of original respondent No.4 as an International Internal Sales Engineer at a monthly salary of Rs.6,273. She had a B.E. (Civil) qualification. Her husband, after an early marriage, had unfortunately passed away in the year 1996 and since then she was living with her parents, the claimants. The deceased had a quick successful progression in her career from the initial post of a Secretary, and the claim was based on the prospective earning of the deceased of more than Rs.25,000 per month3. We may note that qua the accident, the driver of the vehicle in which the deceased daughter was travelling died, and there was apportionment of contributory negligence to the extent of 80 per cent qua the truck driver, and 20 per cent qua the Tata Sierra, the two vehicles, which met with the accident. However, this would not affect the claim qua the parents before us4. There is no dispute that the assessed income of the deceased at the time of the accident was Rs.6,273 per month. This is a finding of fact, both by the Tribunal and the High Court. The Tribunal, however added approximately 100 per cent towards future rise in income and considered the prospective income at Rs.12,000 per month, and after deducting 1/3 rd towards personal expenses of deceased, the Tribunal assessed the loss of dependency or the future economic loss at Rs.8,000 per month and thereafter a multiplier of 16 was applied. The Tribunal, thus, awarded a sum of Rs.15,36,000 towards loss of dependency benefit; Rs.15,000 towards conventional amount under the head loss of estate; Rs.15,000 towards loss of love and affection and Rs.5,000 towards funeral expenses totaling to Rs.15,71,000 in terms of an award dated 29.3.2007. The claimants were also held entitled to interest @ 12 per cent per annum on the award amount from the date of application till realization5. Both the sides were aggrieved by the assessment of this claim and filed appeals before the High Court, which modified the award of the Tribunal vide impugned judgment dated 9.2.2015, which is subject matter of the present appeal6. The High Court declined to accept the future income rise as 100 per cent and took the same as 50 per cent in view of the judgment of this Court in Sarla Verma & Ors. v. Delhi Transport Corporation & Anr. 1 The High Court, considering that the claimants were the parents of the deceased, deducted 50 per cent towards personal expenses instead of 1/3 rd of the amount, as per the Tribunal. In fact, a reading of the order shows that these were the only two pleas advanced on behalf of the insurance company on which the appeal of the insurance company succeeded7. The High Court, however, fixed the multiplier at 18 instead of 16 as fixed by the Tribunal, as the deceased was aged about 25 years, and that would have been the appropriate multiplier as per Sarla Verma 2 . The High Court also examined the two other pleased made on behalf of the claimants, i.e., that the award of Rs.15,000 for loss of estate and Rs.15,000 for loss of love and affection was inadequate8. In view of what the High Court held as aforesaid, the amount was computed at Rs.10,72,360 with a sum of Rs.50,000 being awarded under the head of loss of estate as well as loss of love and affection instead of Rs.30,000 as awarded by the Tribunal and Rs.5,000 towards funeral expenses. The interest awarded was also upheld. 19. The claimants alone are the appellants before us.

Court's reasoning:
No doubt the second certificate is dated 8.7.2005, after a lapse of 7 years from the first certificate, but then that would be a more realistic estimate of what a person holding that post would be earning at that stage of time. There is no rebuttal evidence led by the insurance company and we see no reason to doubt these certificates. Thus, the assessment of the Tribunal is based on the evidence led in the present case. As noticed above, the standardized percentage is capable of being varied if the evidence is so led12. We are, thus, of the view that looking into the conspectus of theaforesaid facts and the legal position, the Tribunal was justified in giving a 100 per cent increase and taking the future prospects at Rs.12,000 per month13. The second aspect relates to the percentage of deduction. It really could not be seriously disputed before us that considering that the deceased is survived by the two parents, 50 per cent amount be deducted as personal and living expenses of the deceased when the deceased is unmarried or widowed, as in the present case in view of the judgment in National Insurance Company Limited 6 , which has affirmed the position in Sarla Verma 7 . Thus, the High Court was justified in increasing the percentage of personal expenses to the extent of 50 per cent and not 1/3 rd as held by the Tribunal14. Now coming to the last aspect, i.e., the conventional heads, in National Insurance Company Limited 8 , it has been standardized at Rs.15,000 for loss of estate; Rs.40,000 towards loss of consortium (in the present case loss of love and affection) and Rs.15,000 towards funeral expenses. The total amount, thus, would be Rs.70,000, whichas per the said judgment is capable of being enhanced @ 10 per cent in the span of every three years. However, we are still within the window of three years.