Top Headlines

Assam: Gauhati High Court enhances award of insurance claim

The Gauhati High Court enhanced the award of compensation paid to an insured driver due to accidental death on the grounds of monthly income and future prospects.

Sentinel Digital Desk

Staff Reporter

Guwahati: The Gauhati High Court enhanced the award of compensation paid to an insured driver due to accidental death on the grounds of monthly income and future prospects. The HC ordered an enhancement on the claim settled on the basis of a judgement and order dated February 10, 2014, passed by the Motor Accident Claims Tribunal (MACT), Darrang.

Justice Sanjay Kumar Medhi on an appeal preferred under Section 173 of the Motor Vehicle Act, 1988, against a judgement and order dated February 10, 2014 passed by the MACT, Darrang in MAC Case No. 36/2012. The appeal was filed by the claimant, praying for an enhancement in the compensation made in respect of an accident that occurred on September 18, 2011, in which the husband of the appellant, Paresh Gogoi, the driver of an excavator, had expired.

In the claim petition as well as in the deposition, it was contended that the deceased used to receive a monthly remuneration of Rs. 8,000. The claimant, who had deposed as Prosecution Witness (PW)-1 and a co-worker as PW-2, had both consistently stated the monthly income of the deceased to be Rs. 8,000/-. There was, however, no document on the monthly income. The tribunal had awarded an amount of Rs. 4,85,000 with interest at 6%.

The counsel for the appellant submitted that though there was no documentary evidence on the aspect of income, there was an adequate statement in the claim petition supported by the depositions made by PW-1 and PW-2 regarding the monthly income of the deceased as Rs. 8,000. It was, however, submitted that the owner of the excavator stated in his written statement that the monthly income of the deceased was Rs. 4,500. The counsel submitted that the Tribunal had taken Rs. 3,000 as the notional income, while at least the amount mentioned by the owner in the written statement should have been taken to be the monthly income.

The appellant's counsel had also appealed for enhancement on the ground that the aspect of future prospects had not been taken into consideration by the Tribunal. By referring to the case of National Insurance Co. Ltd. vs. . Pranay Sethi, the learned counsel for the appellant submitted that the Constitution Bench of the Supreme Court laid down the future prospect to be 40%.

The counsel for the insurance company IFFCO TOKIO General Insurance Company submitted that the Tribunal's approach regarding the monthly income of the deceased, in the absence of any documentary evidence, was deemed at Rs. 3,000 per month as notional income, which cannot be found fault with. He, however, submitted that the award has not taken into consideration the aspect of future prospects, which has to be considered as per the law prevailing at the time of the accident.

Considering all the facts and circumstances, the court offered the opinion that the impugned award is inadequate and made out a case for enhancement . Taking the assistance of the counsel for the parties, the court arrived at a lump sum figure of Rs. 1,50,000/- (One lakh and fifty thousand) as additional compensation.

The aforesaid amount is required to be paid by the insurance company within a period of 45 days from the date of the order, failing which, the amount would carry interest at the rate of 9% from the expiry of the prescribed period of 45 days, the court ruled.

 Also Read: Assam: Accident Leads to the Death of Two Youths (sentinelassam.com)

Also Watch: