Narayan and Others vs Manager Royal Sundaram Alliance Insurance Co. Ltd. and Another

CIVIL APPEAL NO. 6855 OF 2022 (ARISING OUT OF SLP (C) NO.1797 OF 2018)

NARAYAN & ORS. ... APPELLANTS

Versus

MANAGER ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD.& ANR. ... RESPONDENTS

ORDER

1. This appeal is of the claimants, which arises out of the Impugned

Judgment dated 05.04.2017 by the High Court of Karnataka at

Kalaburagi Bench in an appeal against the order of Motor Accident

Claims Tribunal (for short, the “Tribunal”) dated 28.06.2014.

2. The accident occurred on 30.03.2010 when the deceased Kiran

was riding on a two-wheeler from Sholapur to Pandharpur,

Maharashtra. During the journey an accident occurred when a Heavy Signature Not Verified

Goods Vehicle crashed into the two-wheeler and caused fatal injuries Digitally signed by NIRMALA NEGI Date: 2022.10.15 12:25:45 IST Reason:

to Kiran, who died on the spot. The claim petition was filed on his

behalf by his parents and younger brother. The Tribunal was of the opinion that the accident did occur due to the rash and negligent

driving by driver of the Heavy Goods Vehicle. The vehicle was

insured with respondent no.2 insurance company and the liability was

fixed on the insurance company by the Tribunal. The award was made

as per the following table : -

Head Details/Amount Occupation T.V. News Reporter Income Rs. 10,000/- Age 25 Years Multiplier 15 Deduction on account of 50% (1/2) personal expenses Loss of Consortium Rs. 30,000/- Loss of Estate Rs. 50,000/- Funeral Expenses Rs. 25,000/- Rate of Interest awarded 6% TOTAL AMOUNT Rs. 10,05,000/- AWARDED

3. The matter was taken in appeal to the High Court, which after

considering the submissions of the insurance company awarded them

increased compensation on the opinion that the income of the

deceased should be taken as Rs.15,000/- and the multiplier should

have been eighteen instead of fifteen. The High Court further

increased the compensation granted under the head of loss of

consortium to Rs.75,000/-. Therefore, the High Court awarded the

amount of Rs.17,70,000/- with the amount to be given at the 6%

interest. Though, we find that the rate of interest awarded should have

been fixed at 7.5% and hence the rate of interest stands modified.

4. However, we think that the Tribunal and the High Court have

erred in not granting future prospects to the claimants in terms of the

judgement of National Insurance Company v. Pranay Sethi & Ors.1

Accordingly, the appeal is allowed and the future prospects at the

rate of 40% is granted to the claimants. The total compensation

payable to the appellants would be Rs 37,80,000/- at 7.5% interest.

……..............................J. [HEMANT GUPTA]

.….............................J. [SUDHANSHU DHULIA]

New Delhi, September 22, 2022.

1 (2017) 16 SCC 680