Manipur HC Directs Insurance Company To Pay Rs.29,75,000 As Compensation To The Family Of Man Who Died In Road Accident

The Manipur High Court bench comprising Justice A. Guneshwar Sharma held that the appropriate monetary amount for the family of a man deceased in a road accident should be 16 and one third of the amount would be deducted as the deceased’s personal expenses. The court was hearing an appeal filed by the insurance company against the order of Motor Accident Claims Tribunal. The tribunal had awarded a sum of Rs. 36,67,500 to the family and an appeal under section 173 of the Motor Vehicles Act, 1988 was preferred before the high court.

In the matter at hand the deceased was a man named Hari Prasad Khatiwada who died in a road accident while he was returning from Imphal to his house on a scooty and collided with a TATA Truck. As a result of the incident his family approached the Motor Accident Claims Tribunal and claimed a compensation of Rs.45,00,000.

The appellant herein had submitted before the tribunal that the deceased was riding a two wheeler in a rash and negligent manner and that is why they are not liable to pay any compensation.

The tribunal on perusal of the submissions, directed the insurance company to pay Rs. 36,67,500 to the family of the deceased at an interest rate of 6% per annum. Resultantly the insurance company approached the high court. 

Advocate A. Denni Sharma appeared on behalf of the appellant and Advocates H. Dijen Sharma and H. Chandrakumar appeared on behalf of the respondents.

It was submitted before the court, on behalf of the appellant that the claimants had impleaded the insurer as respondent in the case for claiming compensation before the tribunal and hence the appellant is free to prefer an appeal without the leave of the court. The respondent submitted that since the appellant had not taken the leave of the court to defend as per section 170 of the act, they cannot prefer an appeal under section 173 of the act.

The High court observed that the claimants themselves impleaded the appellant in the suit for compensation and hence the appellant are within their right to prefer an appeal. After relying on  relevant case laws such as Sarla Verma V. DTC and National Insurance Company Co. Ltd. V. Paranay Sethi, court held that the appropriate monetary amount for the family of a man aged 35 years, deceased in a road accident should be 16 and one third of the amount would be deducted as the deceased’s personal expenses and directed the appellant to pay Rs.29,75,000 with an interest rate of 6% per annum from the date of filing the claim. The court further held that the amount awarded towards the funeral expenses can be Rs.15,000 and towards the loss of benefits by loss of a family relation, that is the death of the man, would be Rs.40,000.

The court also made observation on how the compensation would be divided among the claimants, who are the family members of the deceased. They include:

1. Wife of the deceased
2. Mother of the deceased
3. Father of the deceased
4. Minor daughter of the deceased

The court noted that there is nothing on record to show that the deceased’s father was dependent on him and hence cannot claim compensation which leaves 3 dependants of the deceased. The court further observed that the minor daughter would only be entitled to Rs.40,000 for the loss of care and guidance of her father. The court directed that the total amount of compensation would be divided in equal shares between the mother, wife and the minor daughter but the minor daughter’s share would be kept in a bank as FD  till she attains the age of maturity.

Case: BRANK MANAGER, NEW INDIA ASSURANCE CO. LTD. V. SANJU KHATIAWADA 

M.A.C. APPEAL NO. 2 OF 2021