Case Note & Summary
The New India Assurance Co. Ltd. appealed against the judgment and order dated 31st January 2012 of the Motor Accident Claims Tribunal, Mumbai, which partly allowed the claim petition filed under Section 166 of the Motor Vehicles Act, 1987 by the respondents (parents of the deceased) and directed the owner and insurer to jointly and severally pay Rs.3,12,000/- with interest at 9.25% per annum. The insurer challenged only two components: the award of Rs.50,000/- for 'pain and suffering' and the interest rate of 9.25%. The appellant argued that compensation for pain and suffering cannot be awarded to legal heirs in a fatal accident case, relying on the Supreme Court's decision in Sarla Verma v. Delhi Transport Corporation (2009) 2 SCC (Cri.) 1002, which held that no amount should be awarded under the head of pain, suffering or hardship caused to legal heirs. The appellant also contended that the interest rate should be 7.5% per annum. The respondents did not oppose the reduction of the interest rate but argued that the pain and suffering award was justified. The High Court, per Justice R.D. Dhanuka, allowed the appeal in part. It held that the award of Rs.50,000/- for pain and suffering was not permissible as per Sarla Verma and set aside that amount. The court also reduced the interest rate from 9.25% to 7.5% per annum. The rest of the award was upheld.
Headnote
A) Motor Accident Claims - Compensation - Pain and Suffering - In a fatal accident case, compensation for 'pain and suffering' cannot be awarded to the legal heirs of the deceased; it can only be awarded to the person who suffered the pain before death. The Tribunal erred in awarding Rs.50,000/- under this head. (Paras 2-5)
B) Motor Accident Claims - Interest Rate - The Tribunal's award of interest at 9.25% per annum was excessive; the appropriate rate is 7.5% per annum. (Paras 4, 6)
Issue of Consideration
Whether the Motor Accident Claims Tribunal could award compensation of Rs.50,000/- for 'pain and suffering' to the legal heirs of the deceased in a fatal accident case, and whether the interest rate of 9.25% per annum was excessive.
Final Decision
Appeal partly allowed. The award of Rs.50,000/- for pain and suffering is set aside. The interest rate is reduced from 9.25% to 7.5% per annum. The rest of the award is confirmed.
Law Points
- Pain and suffering compensation not awardable to legal heirs in fatal accident cases
- Interest rate on compensation should be 7.5% per annum
Case Details
2014 LawText (BOM) (08) 78
First Appeal No. 1136 of 2012
Mr.K.V.Joshi i/b. Mr.D.S.Joshi for the Appellant, Mr.T.J.Mendon for the Respondents
The New India Assurance Co. Ltd.
Sunder Manik Devendra, Smt.Sheela Sunder Devendra, M/s.Reddy Enterprises
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Nature of Litigation
Appeal against award of Motor Accident Claims Tribunal in a fatal accident claim under Section 166 of Motor Vehicles Act, 1987.
Remedy Sought
The appellant insurer sought reduction of compensation by setting aside Rs.50,000/- awarded for pain and suffering and reduction of interest rate from 9.25% to 7.5% per annum.
Filing Reason
The insurer challenged the award of Rs.50,000/- for pain and suffering to legal heirs and the interest rate of 9.25% per annum.
Previous Decisions
The Motor Accident Claims Tribunal, Mumbai, by judgment dated 31st January 2012, partly allowed the claim petition and awarded Rs.3,12,000/- with interest at 9.25% per annum.
Issues
Whether compensation for 'pain and suffering' can be awarded to legal heirs in a fatal accident case?
Whether the interest rate of 9.25% per annum awarded by the Tribunal is excessive?
Submissions/Arguments
Appellant: Relying on Sarla Verma, no amount should be awarded under the head of pain, suffering or hardship caused to legal heirs; interest rate should be 7.5% per annum.
Respondents: Did not oppose reduction of interest rate but argued that pain and suffering award was justified.
Ratio Decidendi
In fatal accident cases, compensation for pain and suffering cannot be awarded to legal heirs; it can only be awarded to the deceased if he suffered pain before death. The appropriate rate of interest on compensation is 7.5% per annum.
Judgment Excerpts
The compensation of Rs.50,000/- awarded by the Tribunal could not have been awarded in case of accident resulting in death but can be awarded only to the person himself who met with fatal accident and suffers pain.
The Supreme Court has categorically held that where the deceased is survived by his widow, another conventional amount in the range of 5000 to 10000 should be added under the head of loss of consortium but no amount is to be awarded under the head of pain, suffering or hardship caused to the legal heirs of the deceased.
Procedural History
The respondents filed a claim petition under Section 166 of the Motor Vehicles Act, 1987 before the Motor Accident Claims Tribunal, Mumbai. The Tribunal partly allowed the claim on 31st January 2012, awarding Rs.3,12,000/- with interest at 9.25% per annum. The insurer filed the present appeal challenging the award of Rs.50,000/- for pain and suffering and the interest rate. The appeal was heard and decided on 19th August 2014.
Acts & Sections
- Motor Vehicles Act, 1987: 166
