Authority: High Court of Karnataka at Bengaluru

Order Date: 13 July 2018

Case Overview

  • Parties: Appellant – The New India Assurance Company Limited; Respondents – Smt. Manjula (second wife), her children Master Preetham and Kum. Aadya, Smt. Latha (first wife) and her son Master Ganesh, and others as listed.
  • The dispute concerns the Motor Accident Claims Tribunal‑III, Davanagere award dated 3 September 2014 granting Rs 33,79,886 compensation with 6% interest for the death of Mr. Manjunath G. Jannu in a motorcycle accident on 14 September 2010.
  • The insurer challenged the award on several grounds: incorrect age of the deceased, multiplier, inclusion of property income, personal‑expense deduction rate, and loss‑of‑future‑prospects percentage.
  • Respondents argued the deceased was 42 years old (school record), supporting the Tribunal’s multiplier of 14 and other calculations.

Final Outcome

  • The Court held the income‑tax return date of birth (12‑06‑1958) as admissible, fixing the deceased’s age at 52 years; therefore the appropriate multiplier is 11, not 14.
  • Property income of Rs 39,936 was excluded; taxes of Rs 20,624 (income tax) and Rs 2,400 (profession tax) were deducted; 10% was added for future prospects; one‑fourth of income (Rs 45,229) was deducted as personal expenses.
  • Calculated loss of dependency: Rs 1,35,688 × 11 = Rs 14,92,568.
  • Funeral expenses fixed at Rs 25,000.
  • Total compensation reduced from Rs 33,79,886 to Rs 17,17,568.
  • The insurer is directed to deposit the remaining balance of Rs 27,625 with interest at 6% per annum; the amount already deposited (50% of the original award) may have been withdrawn by the claimants.
  • Disbursement of the reduced compensation is stayed pending the resolution of related MFAs (No. 3139/2015 and No. 2327/2015).

Topics: Compensation, Motor Accident, Insurance