National Insurance Company Limited Vs. Birender and Ors.

️

SC:Liability to pay compensation under Motor Vehicles Act, 1988 does not cease because of absence of dependency of concerned legal representative. Even major married and earning sons of deceased being legal representatives have right to apply for compensation and it would be bounden duty of Tribunal to consider Application.

(A) Motor Vehicles Act, 1988 - Section 166 - Claim Application - Locus standi to file - Major married son who is also earning and not fully dependant on deceased, would be still covered by expression “legal representative” of the deceased - Liability to pay compensation under the Act does not cease because of absence of dependency of concerned legal representative - Legal representatives of deceased have a right to apply for compensation - Even major married and earning sons of deceased being legal representatives have right to apply for compensation and it would be bounden duty of the Tribunal to consider Application irrespective of fact whether concerned legal representative was fully dependant on deceased and not to limit claim towards conventional heads only. (Paras 14 and 15)

(B) Motor Vehicles Act, 1988 - Section 166 - Haryana Compassionate Assistance to Dependants of Deceased Government Employees Rules, 2006 - Rule 5(2) - Compensation - Deductions - Death in road accident - Victim was a lady and claimants are her major sons - Total compensation of Rs.17,40,532/- along with 9% interest awarded by Tribunal - High Court reduced compensation awarded by Tribunal to Rs.4,84,716/- and gave liberty to appellant to recover excess amount, if already paid - Any deduction from gross salary other than tax amount cannot be reckoned - In that, actual salary less tax amount ought to have been taken into consideration by Tribunal for determining compensation amount - High Court, instead of providing for deduction of amount receivable by legal representatives of deceased on this count (under 2006 Rules), from compensation amount, should have independently determined compensation amount and ordered payment thereof subject to legal representatives of deceased filing affidavit / declaration before executing Court that they have not received nor would they claim any amount towards financial assistance under 2006 Rules, so as to become entitled to withdraw entire compensation amount - If dependant family members are 2 to 3, as in this case, deduction towards personal and living expenses of deceased should be taken as one-third - Deduction towards personal expenses to the extent of 50% is excessive and not just and proper considering the fact that Respondent Nos. 1 and 2 along with their respective families were staying with deceased at relevant time and were largely dependant on her income - As regards multiplier ‘13’ applied by Tribunal and High Court, same needs no interference - Total sum of Rs.31,96,230/- is payable to claimants alongwith 9% interest - However, this amount will be payable subject to outcome of application made by Respondent Nos. 1 and 2 to competent authority for grant of financial assistance under 2006 Rules. (Paras 18,19,20 and 22)