![]() Financial Daily from THE HINDU group of publications Sunday, Nov 06, 2005 |
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Investment World
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Courts/Legal Issues Money & Banking - General Insurance Columns - Law Lane Life is a gift, given in trust
"Baby Chanda aged 5 years, while proceeding to her house after attending school, was hit by a Maruti Van bearing No. DL-14-3212 on the road near Mohan Mandir opposite Shop No. 1, Mayapur, Phase-I at about 1.00 pm," reads the text of Justice Pradeep Nandrajog's verdict, narrating the facts of the case. The finest inheritance you can give to a child is to allow it to make its own way, completely on its own feet, advises Isadora Duncan. That's what parents anxiously allow toddlers to do, standing by even as the young one stumbles and totters, falters and falls over. A five-year-old girl would, in all probability, have had spring in her step, and a rhyme on her lip. At least till the killer vehicle interrupted all dreams... "I need not deal with the issue of whether Chanda died due to the rash and negligent act of the driver of the motor vehicle or any other issue," observed the judge, before delving into the appeal by Chanda's parents seeking enhancement of the compensation awarded by the Motor Accident Claims Tribunal (MACT). It was on December 5, 2003, that the Tribunal had awarded them Rs 1 lakh as compensation, stating that the income of the deceased child was incapable of assessment or estimation, and "recognising that every parent has a reasonable expectation of financial and moral support from his child," in the `interest of justice'.
Fatal fifteen
"Had the Tribunal peeped into the Second Schedule, as per Section 163A of the Motor Vehicles Act, 1988, it would have dawned on the Tribunal that vide serial No. 6, notional income for compensation in case of fatal accidents has been stipulated at Rs 15,000 p.a.," observed Justice Nandrajog, commenting on the award. He cited an earlier decision, Manju Devi and Another vs Musafir Paswan and Another (2005 ACJ 99), about the accidental death of a 13-year-old boy. "While awarding compensation under the Motor Vehicles Act, 1988, the Supreme Court took into account the notional income stipulated in the Second Schedule being Rs 15,000 p.a.," noted Justice Nandrajog. "In the instant case, baby Chanda was aged 5 years. Age of the appellants as on date of accident was 28 years and 26 years respectively as recorded in the impugned award. "Applying a multiplier of 15 as set out in Schedule II which refers to the said multiplier, where age of the victim is up to 15 years, compensation determinable comes to Rs 15,000 x 15 = Rs 2,25,000," computed the court. Thus, instead of the Tribunal's award of Rs 1 lakh "towards loss of expectation of financial and moral support as also loss of company of the child, mental agony, and so on," Justice Nandrajog found that the parents are entitled to a compensation of Rs 2.25 lakh. He also awarded Rs 50,000 "on account of loss of company of the child as also pain and suffering suffered by them as a result of the untimely death of baby Chanda". Accordingly, the compensation was enhanced to Rs. 2.75 lakh. The balance sum of Rs 1.75 lakh (that is, Rs 2.75 lakh minus Rs 1 lakh already awarded) was payable jointly and severally, and was to be "shared half and half by the appellants", said the court. Enhanced compensation shall carry interest at 9 per cent p.a. from the date of claim petition till date of payment, added the court.
D. Murali
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