Shobha And Another vs United India Insurnace Company Limited ...

1. Heard the counsel for the appellant and Mrs. Anju Pandey, the counsel for the Insurance Company.

2. The present appeal has been filed challenging an award dated 29.05.2024 only to the extent that quantum awarded is less. No cross appeal has been filed.

3. Admittedly, the deceased was aged about 22 years at the time of the death and was working as 'mason'. The Tribunal has assessed his income at Rs.6,000/- per month.

4. The contention of the counsel for the appellant is that 'mason' comes under semi-skilled workers whose income, at the time when death occurred, was Rs.9,487/- per month on which amount, the enhancement at the rate of future aspects at 40% is to be awarded in the light of the judgement of the Supreme Court in the case of National Insurance Company Limited vs. Pranay Sethi and others; 2017 (4) TAC 673. The amount awarded towards loss of estate, loss of consortium and funereal expenses are also not in accordance with the judgment of the Supreme Court in the cases of Magma General Insurance Company Limited vs. Nanu Ram Alias Chuhru Ram and others; (2018) 18 SCC 130 and National Insurance Company Limited vs. Pranay Sethi and others; 2017 (4) TAC 673

5. Considering the mandate of the Supreme Court in the aforesaid two judgments, the amount awarded are assessed as under :

Sl. No. Head Compensation awarded

1. Monthly income of the deceased Rs.9487/- per month

2. Adding 40% towards future prospects in the light of the judgement in Praya Sethi's case (supra) Rs.13281.80 per month

3. Net yearly income Rs.1,59,381.60

4. As the deceased was unmarried, half of the income would be assessed as dependency of the claimants, thus the dependency of the family is assessed at Rs.79,690.80

Rs.1,59,381/2 = Rs.79,690.80

5. Applying multiplier of '18' Rs.79,690 x 18 =Rs.14,34,434/-

6.

Amount under conventional heads: (i) loss of estate Rs.18,500/- (ii) funeral expenses Rs.18,500/- as per Pranay Sethi's case (supra) (iii) loss of consortium Rs.48,500/- per person (Rs.48,500 x 2) as per Magma General Insurance Company Limited (supra)

Rs.18,500 +

Rs.18,500 +

Rs.97,000 =

Rs.1,34,000/-

7. Total amount of compensation (Sr.No.5 + Sr.No.6)

Rs. 15,68,434/-

6. The amount as recorded above shall be paid alongwith interest @ 7% per annum from the date of claim till actual payment/realisation. The said amount shall be paid by the respondent within a period of three months from today. Any amount already paid as compensation shall be deducted from the total amount to be paid to the claimant.

(Pankaj Bhatia,J.)

May 6, 2026

VNP/-