MANUSHA SREEKUMAR & ORS. versus THE UNITED INDIA INSURANCE CO. LTD.

MANUSHA SREEKUMAR & ORS. versus THE UNITED INDIA INSURANCE CO. LTD.

The Court fixed the deceased's notional monthly income at Rs.15,600 based on the Kerala Fair Wages Act classification of driver as a skilled worker and the 2015 Government notification prescribing minimum wages; rental income was not added as it accrues to heirs; applying multiplier 16 (age 32), adding 40% for future prospects and deducting one-third for personal expenses resulted in loss of dependency Rs.27,95,520; adding other heads granted by the High Court (Rs.1,78,000) produced total compensation Rs.29,73,520 payable by the Insurance Company with 9% interest from date of filing until realization; insurer's challenge to non-conventional heads was not entertained as it did not appeal...

Parties
Appellants: Manusha Sreekumar & Ors.; Respondent: The United India Insurance Co. Ltd.
Jurisdiction
India
Judgment Date
17 October 2022
Procedural Posture
Civil Appeal No. 7593 of 2022 / Appeal From High Court Judgment (m.a.c.a. No. 4102 of 2018, High Court of Kerala at Ernakulam)
Outcome
Appeal partly allowed; High Court judgment set aside to the extent of enhanced compensation
Legal Topics
Loss of Dependency, Just Compensation, Minimum Wages as Yardstick, Judicial Notice of Statute, Non Conventional Heads of Compensation, Multiplier Method
Motor Vehicles Act/compensation Evidence Labour/minimum Wages Law Loss of Dependency Just Compensation Minimum Wages as Yardstick Judicial Notice of Statute Non Conventional Heads of Compensation +1 more

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Parties

Manusha Sreekumar & Ors.

Appellants

The United India Insurance Co. Ltd.

Respondent

Procedural Posture

Civil Appeal No. 7593 of 2022 / Appeal From High Court Judgment (m.a.c.a. No. 4102 of 2018, High Court of Kerala at Ernakulam)

Legal Issues

  1. 1 Whether the High Court was right in reducing the monthly income of the deceased from Rs.17,500 to Rs.10,000 for want of sufficient documentary evidence
  2. 2 Whether the High Court was right in awarding compensation under the 'non-conventional heads' which is impermissible as per Pranay Sethi

Ratio Decidendi

The Court fixed the deceased's notional monthly income at Rs.15,600 based on the Kerala Fair Wages Act classification of driver as a skilled worker and the 2015 Government notification prescribing minimum wages; rental income was not added as it accrues to heirs; applying multiplier 16 (age 32), adding 40% for future prospects and deducting one-third for personal expenses resulted in loss of dependency Rs.27,95,520; adding other heads granted by the High Court (Rs.1,78,000) produced total compensation Rs.29,73,520 payable by the Insurance Company with 9% interest from date of filing until realization; insurer's challenge to non-conventional heads was not entertained as it did not appeal...

Court Disposition

Appeal partly allowed; High Court judgment set aside to the extent of enhanced compensation

Orders

  • Insurance Company to pay Rs.29,73,520 to the Appellants with interest at 9% per annum from the date of filing of the claim petition till realisation
  • Amount to be apportioned among the Appellants in the ratio fixed by the Tribunal