New India Assurance Co Ltd vs Jalpaben Dipeshbhai Vaishnani on 2 April, 2026

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    Gujarat High Court

    New India Assurance Co Ltd vs Jalpaben Dipeshbhai Vaishnani on 2 April, 2026

                                                                                                                  NEUTRAL CITATION
    
    
    
    
                                C/FA/411/2015                                   JUDGMENT DATED: 02/04/2026,
    
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                                        IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
    
                                                    R/FIRST APPEAL NO. 411 of 2015
    
    
                          FOR APPROVAL AND SIGNATURE:
    
    
                          HONOURABLE MS. JUSTICE NISHA M. THAKORE
                          ==========================================================
    
                                       Approved for Reporting                   Yes            No
    
                          ==========================================================
                                                    NEW INDIA ASSURANCE CO LTD
                                                               Versus
                                                JALPABEN DIPESHBHAI VAISHNANI & ORS.
                          ==========================================================
                          Appearance:
                          MS DIMPLE A THAKER(6838) for the Appellant(s) No. 1
                          MR. JAY M THAKKAR(6677) for the Defendant(s) No. 2,3
                          NISHIT A BHALODI(9597) for the Defendant(s) No. 1,4
                          RULE SERVED for the Defendant(s) No. 5,6
                          ==========================================================
    
                             CORAM:HONOURABLE MS. JUSTICE NISHA M. THAKORE
    
                                                            Date : 02/04/2026
    
                                                            ORAL JUDGMENT

    1. Heard Ms. Dimple A. Thaker learned advocate on
    record for the appellant-New India Assurance Company
    Ltd., Mr. Nishit A. Bhalodi learned advocate has appeared
    on behalf of respondent-original claimant and Mr. Jay M.
    Thakkar learned advocate has entered appearance on behalf
    of respondents No. 2 and 3.

    2. The present appeal is filed at the instance of the
    original opponent No. 2-Insurance Company under Section
    173
    of the Motor Vehicles Act, 1988, (for short “the Act

    SPONSORED

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    1988 “), being aggrieved and dissatisfied by the judgment
    dated 09.12.2014 and award dated 22.12.2014 passed by
    the Motor Accident Claims Tribunal, (Aux), at Gondal in
    M.A.C.P No. 487 of 2006. By the said judgment and award
    the Tribunal has partly allowed the claim petition preferred
    by the original claimants under Section 166 of the Act,
    1988 holding them entitled to recover a sum of Rs.
    5,85,500/-, towards compensation from the original
    opponents jointly and severally, with interest at the rate of
    9% per annum from the date of filing of the claim petition
    till its actual realisation with proportionate costs.

    3. Before adverting to the merits of the appeal,
    appropriate would be to consider the manner in which the
    accident was reported.

    3.1. On fateful day on 28.12.2005, the deceased
    Dipeshbhai Jamanbhai was traveling as a pillion rider on
    Hero Honda Splendor Motor Cycle bearing registration MH-
    16X-854 which was driven by original opponent No.1. They
    were traveling from Puna road, Maharashtra and while they
    had reached near village Kamarganv opposite to Miles Stone
    Hotel, their vehicle was hit by unknown luxury bus. It was
    pleaded that the vehicles were driven in a rash and
    negligent manner and the luxury bus had approached from
    the wrong side and had hit the motorcycle and ran away.
    Due to the impact, the deceased had sustained fatal injuries

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    and he had died on the spot. The heirs and legal
    representatives of the deceased which includes the wife of
    the deceased, their two minor children and the parents of
    the deceased, have preferred claim petition under Section
    166
    of the Act, 1988 praying for compensation of Rs. 8
    lakhs with interest and cost from the original opponents
    which includes the driver of the motorcycle, the owner of the
    motorcycle and the Insurance Company.

    4. Considering the pleadings, the summons were issued
    upon the original opponents before the Tribunal. Despite
    service of summons, the driver cum owner (opponent No.1)
    had chose not to enter appearance or to object to the claim
    petition. The original opponent No.2 Insurance Company
    had objected to the claim petition by submitting its written
    statement at Exh. 17. Apart from disputing the averments
    made in the claim petition, specific defense was raised by
    the Insurance Company, disputing the negligence of the
    driver of the motorcycle as well as holding of any valid
    driving license. It was also contended that in absence of the
    driver and the owner of the unknown luxury bus alleged to
    be involved in the accident as being not joined as party to
    the proceedings, the claim petition was not maintainable. It
    was contended that the accident had occurred due to sole
    negligence on the part of driver of the unknown luxury bus.
    By raising aforesaid grounds, the Insurance Company had
    disputed their liability to pay any amount of compensation.

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    Considering the aforesaid pleadings, the Tribunal had
    framed issues at Exh. 23, which are reproduced as under :-

    “1. Whether the accident was caused due to rash and
    negligent driving on the part of driver of MH-16X-854
    as alleged?

    2. What amount of compensation the applicant is
    entitled to and from whom?

    3. What order and award?”

    5. On the issue of negligence, the Tribunal had taken into
    consideration, the examination-in-chief affidavit of the wife
    of the deceased at Exh. 29 who had mainly reiterated the
    averments made in the claim petition in her cross-
    examination. The opponent Insurance company had failed
    to bring on record any contradictory facts on the issue of
    negligence. Considering the aforesaid evidence in light of the
    other corroborative material; the post- mortem report of the
    deceased produced on record, the FIR of the alleged
    accident, the panchnama of the place of accident, the
    Tribunal arrived at a finding that both the drivers of the
    respective vehicles involved in the accident have attributed
    to the occurrence of accident. The Tribunal had further
    relied upon the Full Bench decision of Hon’ble Supreme
    Court 2014 ACJ 74 as well as of this Hon’ble High Court in

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    the case of Mayaben Ramanlal Jaiswal and another Vs.
    Rajubhai Chimanlal Jaiswal and another
    reported in
    (2014) ACJ 859 holding that in case of composite
    negligence, all the opponents were jointly and severally
    liable to pay the amount of compensation to the claimants.
    On the quantum of compensation, the Tribunal has noted
    that the claimants have contended that the deceased was
    serving in Shiv Shakti Solvent and was also doing furniture
    work thereby earning income of Rs.8000/- per month,
    however, in absence of any evidence on record being
    produced reflecting the income of the deceased, the
    Tribunal had fixed the monthly income of deceased as Rs.
    3000/-. Considering the avocation of the deceased of
    serving in the Industry, the Tribunal has considered 30%
    addition towards future rise in the aforesaid income and has
    thereby determined the prospective income of the deceased
    as Rs. 3,900/- per month. Considering the age of the
    deceased 20 years as recorded in the postmortem report,
    the Tribunal has applied the multiplier of 17 and has
    considered the deduction of 1/3rd towards personal and
    living expenses of the deceased so as to arrive the monthly
    dependency of the deceased as Rs. 2,600/-. The loss of
    dependency was fixed as Rs. 5,30,400/- (Rs. 2600/-
    multiply by 12 multiply by 17). The Tribunal has further
    taken into consideration, the amounts under conventional
    heads and has awarded Rs. 20,000/- and Rs. 5000/-
    respectively. Lastly, the Tribunal has awarded Rs. 30,000/-

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    under the head of love and affection and consortium. The
    Tribunal has thereby awarded total compensation of Rs.
    5,85,500/-. Having held so, the Tribunal has further
    apportioned the liability of the opponent No.1, i.e driver cum
    owner of the motorcycle to the extent of 30% thereby fixing
    the liability of the driver of unknown luxury bus as 70%.
    However, considering it as the case of composite negligence,
    all the opponents are held jointly and severally liable to pay
    compensation of Rs. 5,85,500/- with interest and cost.
    Hence, the present appeal at the instance of the Insurance
    Company of the motorcycle disputing their liability mainly
    on the ground of the negligence and the quantum of
    compensation.

    6. Learned advocate appearing for the appellant
    Insurance Company has vehemently submitted that despite
    specific defense being raised before the Tribunal disputing
    the issue of negligence, the Tribunal has not appreciated the
    evidence on record in its right perspective while holding the
    driver of the motorcycle negligent to the extent of 30%. She
    has invited my attention to the defense raised in the written
    statement at Exh. 17 by the appellant Insurance Company
    and has urged this Court to re-appreciate the FIR and
    panchanamas as according to her no negligence can be
    attributed to the driver of the motorcycle towards the
    accident. Alternatively, she has submitted that even
    considering 30% liability of the driver of the motorcycle, the

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    Insurance Company could not have been held liable to pay
    the entire amount of compensation as can be gathered from
    the directions issued by the Tribunal in its impugned
    judgment and award by holding the driver, owner and the
    Insurance Company of the motorcycle, jointly and severally
    liable along with the driver of the unknown luxury bus.

    7. In support of her submission, reliance was placed on
    the judgment of the Kerala High Court in the case of
    National Insurance Co. Ltd Vs. Sivasankara Pillay and
    Ors.
    reported in (1995) ACJ 1077.
    The reliance was also
    placed on the decision of Kerala High Court in the case of
    United India Insurance Company Ltd. Vs. Mariamma
    George
    , reported in AIR 2010 (NOC) 838 (Kerala).
    Referring to the observations made in the aforesaid decision,
    learned advocate has submitted that the appellant
    Insurance Company at the most can be held liable to pay
    the amount of compensation to the extent of 30%. On the
    quantum of compensation, learned advocate had submitted
    that in absence of any proof of income being produced on
    record, the Tribunal committed a serious error in fixing the
    income of the deceased as Rs. 3000/-. It was submitted that
    as per settled principles laid down by the Hon’ble Supreme
    Court in its various decisions, in absence of proof of income
    on record, considering the nature of avocation of the victim
    of the accident Courts/Tribunal are bound to follow the
    yardstick of minimum wages prevailing at the time of

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    accident the standard rates of minimum wages notified by
    the State Government as prevailing on the date of the
    accident ought to have been followed for fixing income.
    According to her, the minimum wages prevailing even in the
    case of skilled workers to be considered was Rs. 2,400/-.
    She has further disputed the liability of the Insurance
    Company by submitting that the pillion rider on a
    motorcycle cannot be considered third party. The question
    of law as to whether insurance company can be held liable
    to pay compensation in case of injuries or deaths of pillion
    rider is pending consideration before the larger Bench, in
    view of the order dated 25.08.2022 passed by the Hon’ble
    Supreme Court in the case of Mohana Krishnan S. Vs. K.
    Balasubramaniyam & ors
    , Special Leave to Appeal Nos.
    3433 of 2020. By making aforesaid submissions learned
    advocate has referred to and relied upon on the grounds
    raised in the appeal memo and has urged this Court to
    allow the appeal and to exonerate the Insurance Company
    from its liability to pay compensation or to alternatively
    modify the impugned judgment and award to the extent of
    30%.

    8. Per contra, learned advocate Mr. Nishit Bhalodi
    appearing for the respondent original claimant has
    forcefully objected to the aforesaid submissions made by
    learned advocate for the appellant-Insurance Company.
    Learned advocate had mainly relied upon the findings and

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    reasons assigned by the Tribunal and has submitted that
    the Tribunal has rightly appreciated the FIR and
    panchnama produced on record in light of the evidence of
    the claimant. As rightly noted by the Tribunal, no
    contradictory material fact has been brought on record by
    the Insurance Company in the cross-examination of the
    claimant. In absence of any rebuttal of the evidence of the
    claimant, though the driver of the unknown luxury bus has
    not been joined as party to the proceedings, however,
    considering the manner in which the accident was reported
    and been established by the claimant, the Tribunal has
    rightly fixed the negligence of respective drivers to the extent
    of 70% : 30%. It is equally settled principle that in case of
    composite negligence, the claimant is entitled to sue both or
    any of the joint tortfeasors and is also entitled to recover
    the entire amount of compensation as their liability as joint
    tortfeasor is jointly and severally. The reliance was placed
    on the decision of the Coordinate Bench of this Court in the
    case of legal heirs of deceased Karna bhai Rajsibhai & Ors.
    Vs. Owner of Chakdo Rickshaw No. GJ-11-V-3106 & Ors.,
    oral order dated 05.02.2025, passed in First Appeal No.
    1714 of 2010 as well as in the case of Arvind Tulsidas
    Ganatra Vs. Dilipkumar Jwalaprasad Pande in First
    Appeal No. 4162 of 2018, oral order dated 15.02.2024.
    Inviting my attention to the reasons assigned, learned
    advocate had submitted that the Court has mainly relied
    upon the decision of the Hon’ble Supreme Court in the case

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    of Khenyei Vs. New India Assurance Company Ltd.
    (2015) 9 SCC 273. Learned advocate has also placed
    reliance upon
    the decision of the learned Single Judge of
    this Court in the case of Mayaben Ramanlal Jaiswal and
    another
    (supra). Inviting my attention to the facts of the
    aforesaid cases referred to and relied upon, learned
    advocate had submitted that in similar set of facts where
    the collision had occurred between the vehicle involved in
    the accident and the unknown vehicle, the Court has
    appreciated the evidence on record and had answered the
    issue of negligence of the drivers of both the vehicles
    involved. Though the Court has apportioned the negligence
    of the respective drivers of the vehicles involved, as regards
    the liability towards the payment of entire amount of
    compensation in case of composite negligence is concerned,
    it has been held that the claimants are entitled to sue any of
    the tortfeasors and recover the entire compensation.
    Learned advocate has, therefore, urged this Court to dismiss
    the present appeal on the issue of negligence.

    9. As regards the quantum of compensation is
    concerned, learned advocate had fairly submitted that no
    appeal or cross-objections have been filed by the claimant,
    however, in order to defend the amount of compensation
    determined by the Tribunal to be just and proper, he had
    pointed out that if the minimum wages are required to be
    considered as Rs. 2,400/- then the future rise of income has

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    wrongly been confined to 30% instead of 40%. Similarly, the
    deduction of 1/3rd has wrongly been applied instead of
    ¼th. Considering the fact that the deceased was survived
    by five members in the family at the time of accident. He
    has further pointed out that the amount of compensation
    awarded under the conventional heads is also required to be
    revisited in light of the well settled principles laid down by
    the Hon’ble Supreme Court in its landmark decision in the
    case of National Insurance Company Ltd Vs. Pranay
    Sethi and Ors
    reported in (2017) 16 SCC 680. Learned
    advocate had, therefore, submitted that if the aforesaid
    components are taken into consideration which is strictly in
    accordance with the settled principles laid down by Hon’ble
    Supreme Court, the amount of compensation is required to
    be enhanced. He has, therefore, objected to the
    entertainment of appeal on the issue of quantum of
    compensation as well. Lastly, learned advocate had drawn
    my attention to the written statement filed by the Insurance
    Company at Exh. 17 to point out that in fact the defense
    was raised disputing their liability on the ground that the
    insurance policy was not produced on record at the relevant
    stage. He had invited my attention to the insurance policy
    which is essentially a cover note issued by the appellant
    Insurance Company in respect to the offending vehicle
    motor cycle at mark 29/3. Learned advocate had further
    submitted that considering the grounds raised in the appeal
    memo there is no challenge to the liability on the ground

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    that the policy was not issued in respect of the motor cycle
    involved in the accident. Thus, having not disputed the
    aforesaid policy, the issue which has been raised for the
    first time before this Court with regard to the liability of the
    Insurance company to be deferred in case of pillion rider of
    the insured vehicle pending consideration in the reference,
    was not taken before the Tribunal. He has, therefore,
    objected to take into consideration the aforesaid issue for
    entertaining the present appeal. However, he had submitted
    that despite the aforesaid contention being raised if one
    looks at the policy produced on record at mark 29/3, it is
    evident that the said policy is not an act policy but a
    package policy. The close examination of the contents of the
    policy suggest that apart from the risk of the driver of the
    motorcycle one passenger was also permitted as pillion rider
    on the motorbike. Reading the overall contents of the policy,
    this Court may not dwell into the aforesaid issue as pending
    consideration in the reference before the Hon’ble Supreme
    Court in the facts of the case. The attention of this Court
    was invited to the judgment of the Hon’ble Supreme Court
    in the case of National Insurance Company Ltd. Vs.
    Balakrishnan & another
    reported in 2013 (1) SCC 731. It
    was submitted that before the Hon’ble Supreme Court the
    appellant Insurance Company contended that it was an ‘Act
    only’ policy and therefore, the liability could not be fastened
    on the Insurance company to pay the compensation. It was
    pointed out that the vehicle was insured in the name of the

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    company, the Managing Director was the legal owner of the
    vehicle and therefore, the insurance liability was to the
    limited extent as stipulated in the policy. On the other hand
    the insurer had objected by submitting that even assuming
    that the respondent No.1 was not the owner a non-fare
    paying passenger would not be covered under the policy.
    Barring the insurer and the insured, all others were
    required to be treated as third parties and, therefore the
    liability was covered in terms of the policy. The question
    arose for consideration before the Hon’ble Supreme Court
    was whether in the present case, policy is an ‘Act policy’ or
    comprehensive/package policy. The Hon’ble Supreme Court
    while appreciating the record noted that the Tribunal and
    the High Court had failed to discuss on the issue or
    appreciating the contents of the policy. The matter was
    therefore, remitted back to the Tribunal to scurtinise the
    policy in its proper perspective and the parties were
    permitted to lead additional evidence to examine as to
    whether it was a comprehensive/package policy so as to
    determine the issue of liability.

    10. The learned advocate had further submitted that in the
    background of the facts of the case, the Court had taken
    into consideration, the decision of the High Court of Delhi in
    the case of Yashpal Luthra Vs. United India Insurance
    Company Limited
    reported in 2011 ACJ 1415. The
    controversy arose before the Hon’ble High Court with regard

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    to interpretation of the term package policy. After recording
    the evidence of the competent authority of the tariff advisory
    committee (TAC) and the Insurance Regulatory and
    Development Authority (IRDA), a circular dated 16th
    November 2009 was issued by IRDA to CEOs of all
    Insurance Companies. restating the factual position relating
    to the liability of insurance company in respect of pillion
    rider on a two-wheeler and occupants in a private car under
    the comprehensive/package policy. Referring to the
    aforesaid circular being reproduced, learned advocate had
    submitted that the Hon’ble Supreme Court noted that it has
    been admitted by the competent authority that the term
    ‘comprehensive policy’ is presently called a “package policy’.
    Learned advocate had therefore submitted that considering
    the aforesaid clarification issued by the competent
    authorities, in view of the contents of the policy produced
    on record at mark 29/3 the aforesaid policy is required to
    be treated as ‘comprehensive policy’ covering the risk of the
    pillion rider as well. Learned advocate has therefore, urged
    this Court to dismiss the appeal and to confirm the
    impugned judgment and order of the Tribunal.

    11. I have carefully considered the arguments made by
    learned advocates appearing for the respective parties and I
    have also perused the findings and reasons assigned by the
    Tribunal on the issues framed. I have also re-appreciated
    the relevant evidence on record. At the outset, it would be

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    appropriate to look into the issue of negligence. On careful
    appreciation of the evidence of the wife of the deceased who
    has been examined as witness and her evidence been
    recorded at Exh. 29, it transpires that she is not the
    eyewitness to the accident, however, she has reiterated the
    manner in which the accident had taken place as pleaded in
    the original claim petition. She has categorically pleaded
    and deposed before the Tribunal that the deceased was
    traveling as a pillion rider on a motorcycle which was driven
    in a rash and negligent manner by the original opponent
    No.1 driver cum owner of the motorcycle rightly in the
    middle of the road. At the same time, she has in the equal
    breath pleaded and deposed that the driver of the unknown
    luxury bus was equally negligent in driving the vehicle and
    had hit the motorcycle from the opposite side.

    12. Having noted the aforesaid evidence of the said witness
    on appreciation of her cross-examination, the suggestion
    put forward by the opponent Insurance Company, she has
    conceded to the fact that her husband was sitting as a
    pillion rider on the motorcycle and the said vehicle had met
    with an accident with the unknown vehicle. She has denied
    the suggestion of the counsel for the Insurance that the
    driver of the motorcycle was not negligent. Except for the
    aforesaid suggestion of the counsel for the Insurance
    Company, no contradictory material fact has been brought
    on record rebutting the evidence of the claimant involving

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    the driver of the offending vehicle motorcycle equally
    negligent towards occurrence of the accident. On re-
    appreciation of the documentary evidence mainly the FIR
    and the panchnama produced on record, the case of the
    claimant has been corroborated through the aforesaid
    documentary evidence. The Tribunal with such evidence on
    record has rightly taken into consideration the post-mortem
    report of the deceased which suggest that the deceased had
    succumbed to fatal injuries caused in a motor vehicle
    accident. The driver cum owner of the vehicle had chosen
    not to object to the claim petition, at the same time the
    Insurance Company has failed to examine the driver of the
    motorcycle as witness. With such evidence on record no
    error can be found with the approach of the Tribunal in
    holding the driver of the motor cycle negligent towards the
    occurrence of the accident. The Tribunal has further taken
    into consideration the FIR and the panchnama produced on
    record in light of the evidence of wife of the deceased to hold
    the driver of the unknown luxury bus negligent towards
    occurrence of accident.

    13. Having noted the aforesaid findings and reasons
    assigned by the Tribunal and having re-appreciated the
    evidence, as regards the legal position of the liability of
    insurance company is concerned, admittedly when the
    deceased was a pillion rider it is a case of composite
    negligence. In such circumstances, where the joint

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    tortfeasors were involved, the claimants are entitled to seek
    recovery of the amount of compensation by filing claim
    petition against both tortfeasors or either of them and are
    also entitled to recover the entire amount of compensation
    as liability of joint tortfeasors is jointly and severally as held
    by the Hon’ble Supreme Court in the case of Khenei
    (supra), in case of composite negligence, apportionment of
    compensation between two tortfeasors vis a vis the
    claimant is not permissible. Thus, the claimants are entitled
    to seek recovery of the entire amount of compensation from
    any of the tortfeasors. The Court has also held that it would
    not be appropriate for the Court/Tribunal to determine the
    extent of composite negligence of the driver of two vehicle in
    absence of impleadment of other joint tortfeasors, however,
    as regards the entitlement of recovery of amount of
    compensation is concerned no error can be found with the
    directions issued by the Tribunal to recover the amount of
    compensation jointly and severally. Thus, leaving the option
    open for the claimant to seek recovery of the entire
    compensation from either of the opponents.

    14. Having examined the issue of negligence, if one looks at
    the issue of liability, it would be required to be noted that
    the issue of pillion rider being not a third party for the
    purpose of determining the liability of the insurance
    company of insured vehicle pending consideration in the
    reference before the Hon’ble Supreme Court has been

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    agitated for the first time in the present appeal. On careful
    consideration of the defense raised in the written statement
    at Exh. 17 and the grounds raised in the appeal memo, the
    same is bereft of such defense. The policy issued by the
    insurance company as produced on record at mark 29/3
    has not been disputed by the appellant Insurance company.
    On bare perusal of the contents of the policy, it is evident
    that it is a package policy issued by the Insurance Company
    in fact the insured vehicle is permitted to ply with one
    passenger. Considering the aforesaid contents of the policy
    in light of the circular issued by the competent authority
    IRDA as reproduced in the decision of the Hon’ble Supreme
    Court in the case of Balakrishnan (supra), there is no
    reason for this Court to accept the plea of the appellant-
    Insurance Company that the Insurance Company was not
    liable to pay the compensation to the claimants.
    Considering the decision of the Delhi High Court in the case
    of Yashpal Luthra (supra), this Court is of the view that
    the package policy of the motor cycle covers the risk of
    pillion rider as well. Thus, the Tribunal has rightly fixed the
    liability of the appellant Insurance company jointly and
    severally with the driver of the unknown luxury bus to pay
    compensation to the claimants.

    15. This brings me to the last issue of quantum of
    compensation as disputed by the appellant-Insurance
    Company mainly on the ground that the income of the

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    deceased is fixed on the higher side. It is true that no
    documentary evidence worth has been produced on record
    to satisfy that the deceased was earning monthly salary of
    Rs. 8000/-. The Tribunal has therefore, rightly followed the
    minimum wages, however, as evident from the standard
    rates of minimum wages as notified by the State of Gujarat
    at the time of the accident which has taken place on
    28.12.2005, the minimum wages as notified in the case of
    skilled workman was Rs. 2,400/-. Apt would be to follow the
    principles laid down by the Hon’ble Supreme Court in the
    case of Govind Yadav vs. New India Assurance Company
    Limited
    reported in 2012 ACJ 28 (SC). It has been held that
    in absence of any direct proof of income being produced on
    record, the Courts/Tribunal are at liberty to follow the
    minimum wages notified at the time of accident for the
    purpose of determination of the income of the victim of the
    accident. Considering the avocation of the deceased in the
    facts of the case, the Tribunal ought to have fixed the
    income of the deceased to Rs. 2,400/- per month. As
    regards the loss of dependency is concerned if one looks at
    the well settled principles laid down by Hon’ble Supreme
    Court in the case of Sarla Verma Vs. Delhi Transport
    Corporation
    reported in 2009(6) SCC 121, the Tribunal
    ought to have considered deduction of ¼ th instead of 1/3rd
    as admittedly, the deceased was survived by 5 members in
    the family at the time of accident towards his personal and
    living expenses. As regards the multiplier applied, the age of

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    the deceased being fixed as 28 years which would fall in the
    age group of 26 to 30 years, no error can be found with the
    approach of the Tribunal in adopting the multiplier of 17.

    16. Considering the circumstances on record, following the
    decision of the Hon’ble Supreme Court in the case of Pranay
    Sethi
    (supra), the case of the deceased being treated of a
    fixed salary person falling between the age group of below
    the age of 40 years, 40% rise was required to be considered
    towards the prospective income of the deceased.
    Considering the aforesaid components, the loss of
    dependency is redetermined as Rs. 5,15,400/-. Learned
    advocate for the respondents has fairly conceded to the fact
    that no appeal or cross-objections have been filed praying
    for enhancement. However, since the appeal is also filed on
    the issue of quantum of compensation bearing in mind the
    object of legislation to award just and reasonable amount of
    compensation, noticing the vehemency of the appellant-
    Insurance Company disputing the quantum of
    compensation, this Court is mandated to examine the
    aforesaid aspect. Considering the broad principles that a
    beneficial legislation is required to be adopted in a manner
    which promote social welfare, protect vulnerable groups and
    provide effective remedies to accident victims this Court
    bearing in mind the core object of just and reasonable
    amount of compensation to be awarded, cannot ignore the
    well settled principles laid down by Hon’ble Supreme Court

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    on quantum of compensation. While considering the
    amount of compensation under the head of dependency
    loss, this Court has in absence of appeal or any cross-
    objections been filed by the original claimant, been
    compelled to look into the quantum of compensation being
    awarded under the conventional heads as well.

    17. In view of the subsequent decision of the Hon’ble
    Supreme Court in the case of Pranay Sethi (supra), as well
    as in the case of Magma General Insurance Co. Ltd vs.
    Nanu Ram Alias Chuhur Ram & Ors
    reported in (2018) 18
    SCC 130, the amount of compensation awarded under the
    head of loss of love, affection and consortium is re-
    determined. Noticing the fact that the deceased was
    survived by five members in the family, the amount of loss
    of consortium is required to be re-visited in view of aforesaid
    principles. However, it is also required to be noted that the
    mother of the deceased is reported to have expired pending
    the present proceedings. Keeping in mind the aforesaid fact
    and the fact that the claimants mainly include the wife of
    the deceased, their two children, the father of the deceased,
    the loss of consortium is re-determined as Rs. 1,93,600/-
    (Rs. 48,400/- multiply by 4) instead of Rs. 30,000/-
    awarded under the head of love, affection and consortium.
    Similarly, the amount of compensation awarded under the
    head of loss of estate and funeral expenses is re-determined
    as Rs. 18,150/- each.

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    18. For the foregoing reasons, the total amount of
    compensation is re-determined as under :-

                            Sr.                      Details                   Tribunal             In Appeal
                            No.
                             1.           Loss of Dependency               Rs. 5,30.400/-         Rs.5,15.400
                             2.          Conventional amount                Rs. 30,000/-        Rs. 1,93.600/-
                             3.             Funeral expenses                  Rs. 5000/-          Rs. 18,150/-
                             4.                   Loss of estate              Rs. 20,000           Rs. 18,150.
                             5.                   Total amount              Rs.5,85,400/-       Rs. 7,45,300/-
    
    
    
    
    

    19. For the forgoing reasons, the First Appeal is hereby
    partly allowed. The impugned judgment dated 09.12.2014
    and award dated 28.12.2014 passed by the Motor Accident
    Claims Tribunal in MACP No. 487 of 2006 by Motor
    Accident Claims Tribunal (Aux) Gondal is hereby modified
    by holding the original claimants entitled to seek recovery of
    total amount of compensation to the tune of Rs. 7,45,300/-
    with interest at the rate of 9% from the original opponents
    jointly and severally. Rest of the directions issued by the
    Tribunal with regard to the apportionment of the awarded
    amount in favour of the claimants is hereby confirmed.
    Needless to clarify that in case the minors have turned
    major it shall be open for the Tribunal to pass appropriate
    orders.

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    20. Having held so, the appellant Insurance company is
    directed to deposit the enhanced amount of compensation
    to the tune of Rs.7,45,300/- with interest and proportionate
    costs as awarded by this order before the concerned
    Tribunal within a period of six weeks from the date of
    receipt of certified copy of this judgment. On deposit of the
    entire awarded amount with the concerned Tribunal, it shall
    be open for the Tribunal to proceed with the release and
    disbursement of the awarded amount in favour of the
    respective claimants subject to due verification and strictly
    adhering to the guidelines of Hon’ble Supreme Court in this
    regard. The Tribunal shall undertake such exercise within a
    period of two weeks from the date of deposit of the entire
    awarded amount. It is further directed that it shall be open
    for the Tribunal to recover the requisite Court fees, if any,
    before proceeding with the release and disbursement of the
    awarded amount.

    21. With these observations, the First Appeal stands
    disposed of in the aforesaid terms. The record and
    proceedings are directed to be sent back to the concerned
    Tribunal with a writ of this judgment.

    (NISHA M. THAKORE,J)
    MARY VADAKKAN

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