SURESH YADAV AND ANOTHERversusTHE ORIENTAL INSURANCE COMPANY LTD. AND ANOTHER

         HIGH COURT OF JUDICATURE AT ALLAHABAD

          FIRST APPEAL FROM ORDER No. - 1754 of 2010

Suresh Yadav And Another
                                                              .....Appellant(s)
                                   Versus
The Oriental Insurance Company Ltd. And Another
                                                            .....Respondent(s)

Counsel for Appellant(s)        : Neerja Singh, Sharve Singh
Counsel for Respondent(s)       : Mithilesh Kumar Tiwari, Vinod Kumar
                                  Kushwaha

Court No. - 54
                     HON'BLE ANIL KUMAR-X, J.

1. Case called out in the revised call. None is present on behalf of insurance
company to oppose this appeal.

2. Heard Sri Sharve Singh, learned Senior Advocate, assisted by Smt.
Neerja Singh, learned counsel for the appellant.

3. Learned counsel for the appellant submitted that the deceased, Sonu
Yadav, aged about 20 years, was a pillion rider on a motorcycle and was
proceeding on Kanpur Road near the Water Tank, within the jurisdiction of
Police Station Cantt, District Allahabad, on 14.5.2006. At about 3:00 P.M.,
he was knocked down by Truck No. UP-70-AT-8128, which was being
driven rashly and negligently.

4. The learned Tribunal, considering the age of the deceased as 22 years at
the time of his death, assessed his income at Rs.3,000/- per month. After
deducting one-third towards his personal expenses and applying the
multiplier of 11, the learned Tribunal computed the loss of dependency at
Rs.2,64,000/-. It further awarded Rs.2,000/- towards funeral expenses and,
accordingly, granted total compensation of Rs.2,66,000/-. The liability to
pay the compensation was fastened upon the Insurance Company with the
right to recover the same from the owner, on the ground that the driver of the
offending vehicle did not possess a valid and effective driving licence on the
date of the accident, as the same had expired prior to the accident.

5. It was lastly contended that the compensation awarded by the learned
Tribunal is on the lower side and requires reassessment by taking the income
of the deceased at Rs.6,000/- per month. Learned counsel further submitted
that the guidelines laid down by the Hon'ble Supreme Court in National
                                                          FAFO No. 1754 of 2010
                                2

Insurance Co. Ltd. Vs. Pranay Sethi and Others, (2017) 16 SCC 680,
should also be applied while reassessing the compensation.

6. Heard learned counsel for the parties and perused the record.

7. This Court does not find any infirmity in the finding recorded by the
learned Tribunal regarding the accident and the liability. However, it is
significant to note that no amount towards future prospects has been added
to the income of the deceased. The addition of future prospects is an integral
part of just compensation in cases of death arising out of motor vehicle
accidents, as held by the Hon'ble Supreme Court.

8. Considering the age of the deceased and the material available on record,
this Court finds it appropriate to reassess the compensation as follows:

i. Annual income : Rs.36,000/- (Rs.3,000/- × 12)

ii. Addition towards future prospects @ 30% : Rs.10,800/-

iii. Total annual income : Rs.36,000/- + Rs.10,800/- = Rs.46,800/-

iv. Income after deduction of one-third towards personal expenses :
Rs.31,200/-

v. Multiplier applicable : 11

vi. Loss of dependency : Rs.31,200/- × 11 = Rs.3,43,200/-

vii. Funeral expenses : Rs.2,000/-

Total compensation : Rs.3,45,200/-

9.     In view of the above, appellant/ claimant is entitled to a total
compensation of Rs.3,45,200/- along with rate of interest at the rate of 6%
per annum in terms of Rule 220-A of U.P. Motor Vehicles Rules, which
shall be indemnified by the insurer of the offending vehicle.

10. Accordingly, the appeal is allowed. The impugned award passed by the
learned Tribunal is modified to the aforesaid extent.

11. It is further directed that if any amount has already been paid by the
Insurance Company pursuant to the award of the learned Tribunal, the same
shall be adjusted towards the total amount payable under this judgment. The
Insurance Company shall deposit the enhanced amount of compensation
before the concerned Tribunal within a period of two months from the date
of this order; it shall further be released by the learned Tribunal within four
weeks after the deposit of the said amount in favour of the claimants/parents,
                                                                                             FAFO No. 1754 of 2010
                                                                    3

                                    each of whom shall directly receive 50%-50% in their respective savings
                                    bank accounts in cash.

                                    (i) The claimants are hereby directed to provide their savings bank account
                                    details, having R.T.G.S. facility, within four weeks from today to the learned
                                    Tribunal.

                                    (ii) The said amount shall be transferred to the savings bank accounts of the
                                    claimants by way of passing a judicial order, so that the differential amount
                                    may be transferred directly from the account of the Tribunal to the accounts
                                    of the claimants, after completing the necessary formalities, if any.

                                    September 9, 2026
                                    Mukesh
                                                                                             (Anil Kumar-X,J.)




Digitally signed by :-
MUKESH SRIVASTAVA
High Court of Judicature at Allahabad