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Case Law Details

Case Name : Reliance General Insurance Company Limited Vs Sudevi Gupta & Others (Calcutta High Court)
Appeal Number : FMA 2037 of 2018
Date of Judgement/Order : 03/04/2023
Related Assessment Year :
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Reliance General Insurance Company Limited Vs Sudevi Gupta & Others (Calcutta High Court)

Calcutta High Court held that computation of award amount without multiplying the amount with the multiplier 13 is unjustifiable.

Facts- On 18th November 2009 while the victim was proceeding through the VIP road from North to South direction on his bicycle, at that time the offending vehicle which was driven in a rash and negligent manner dashed the victim from behind as a result of which he sustained head injuries. Thereafter the victim was taken to ESI Hospital and R.G Kar Hospital, wherefrom he was shifted to SSKM Hospital for further medical treatment. However, on the same day at night hours the victim was shifted to CMRI Hospital for better treatment and a considerable amount of Rs. 3 lakhs were spent towards treatment of the victim. Thereafter, once again the victim was shifted back to SSKM Hospital on 6 December 2009. Ultimately the victim succumbed to his injuries on 7 January 2010 and expired. On account of sudden demise of the deceased-victim, the respondents-claimants being widow, sons and mother of the deceased filed application for grant of compensation of Rs.15 lakhs along with interest u/s. 166 of the Motor Vehicles Act, 1988.

The appellant-insurance company contested the claim application before the learned tribunal. However, respondent no.6-owner of the offending vehicle did not contest the claim application before the learned tribunal and the claim application was disposed of exparte against him.

Conclusion- It appears from the impugned judgment and award that only an amount of Rs. 29,588/- equalling to 25% of the annual income has been taken into account towards future prospects. Needless to mention that amount equivalent to 25% of annual income should be added to the annual income towards future prospects and on deduction towards personal and living expenses, the amount arrived should be multiplied with the multiplier. Therefore, the learned tribunal erred in computation of future prospects which needs to be modified for the interest of justice.

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