Case Law Details
Manusha Sreekumar & Ors. Vs United India Insurance Co. Ltd. (Supreme Court of India)
Conclusion: Hon’ble Supreme Court enhanced the compensation under Motor Vehicles Act by holding that deceased was a ‘skilled labour’ under Kerala Fair Wages Act i.e. State Act and notional income have to be determined on basis of the said Act.
Facts: The present appeal arises out of the judgment dated 23.07.2019 passed by the High Court of Kerala, in an appeal preferred by the Respondent (hereinafter, “Insurance Company”) against the award dated 26.07.2018 of the Motor Vehicle Accidents Claims Tribunal. The High Court allowed the appeal and has reduced the compensation amount of Rs. 32,39,000/ granted to the Appellants by the Tribunal to Rs. 19,70,000/. The issue involved in the instant matter primarily relates to the determination of quantum of compensation awarded under various heads by the Tribunal and the High Court.
On 21.02.2015, a person named SreeKumar died in an accident by the car which was insured by the Respondent Insurance Company. The Appellants approached the Tribunal seeking compensation for their loss under section 166 of the Motor Vehicles Act, 1988 seeking compensation of Rs. 64,15,000/ with interest. The Insurance Company confuted the claim contending that the accident occurred due to negligence of the Deceased. The amount of compensation claimed under various heads was also alleged to be excessive.
Taking into consideration the documentary evidence concerning the Deceased’s income, the Tribunal concluded that he was a skilled labourer. The Tribunal fixed the total compensation of loss of dependency along with various other heads at Rs. 32,39,000/and awarded interest at the rate of 9% per annum from the date of filing of petition till the realisation of awarded compensation.
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