- 1 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE RAJESH RAI K MISCELLANEOUS FIRST APPEAL NO.4588 OF 2020(MV-D) BETWEEN: LEGAL MANAGER RELIANCE GENERAL INSURANCE CO.LTD., EAST WING, 5TH FLOOR, CENTENARY BUILDING, NO.28, M.G. ROAD, BANGALORE-560 001 …APPELLANT (BY SRI. PRADEEP B, ADVOCATE) AND: 1. SMT PARVATHI R W/O RATHNA KUMAR AGED ABOUT 53 YEARS 2. NITINMORAY RATHNAKUMAR S/O RATHNA KUMAR AGED ABOUT 21 YEARS 3. NIRMALMORAY RATHNAKUMAR S/O RATHNA KUMAR AGED ABOUT 30 YEARS ALL ARE R/AT MIG# 105, OLD ASTC HUDCO, HOSUR, KRISHNAGIRI DISTRICT DHARANAOURI TN-635 109 Digitally signed by PANKAJA S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 4. AKHIL M CHALLAKERE ROAD, MADAKARIPURA, CHITRADURGA-577 502. …RESPONDENTS (BY SRI. JAGADEESH H.T, ADVOCATE FOR C/R1-R3 IN CP 13475/2020(CAVEAT FILED BY AFTER FILING THE APPEAL), NOTICE TO R4 IS SERVED AND UNREPRESENTED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED. 18.01.2020, PASSED IN MVC NO.909/2019, ON THE FILE OF THE JUDGE AND ACMM., AND MACT, BENGALURU (SCCH-9), AWARDING COMPENSATION OF RS.27,47,882/- WITH INTEREST AT THE RATE OF 6 PERCENT P.A., FROM THE DATE OF PETITION TILL ITS REALIZATION. THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE RAJESH RAI K ORAL JUDGMENT 1. The appeal by the insurer is filed seeking to set aside the judgment and award passed by the Tribunal in MVC No.909/2019 on 18.01.2020. 2. It is not in dispute that because of the motor vehicle accident which occurred on 03.01.2019, Rathna Kumar, a 63- year-old died. - 3 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 3. It is not in dispute that the Insurer is liable to pay compensation as the offending vehicle was insured. 4. The Tribunal, on assessment of evidence adduced before it, has concluded that the driver of the offending vehicle was responsible for the accident which has resulted in the death of Rathna Kumar. The Tribunal has thereafter proceeded to award the following sums as compensation: Sl. No. Particulars Amount in (Rs.) 1. Loss of Dependency 23,52,000 2. Loss of Consortium 40,000 3. Loss of Filial Consortium 80,000 4. Funeral expenses & Transportation charges 15,000 5. Medical expenses 2,60,882 Total 27,47,882 5. To arrive at the loss of dependency, the Tribunal has determined the monthly income at Rs.42,000/- based on the documentary evidence and awarded the aforesaid sums. - 4 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 6. Heard the learned counsel for both the parties and perused the material on record. 7. Learned counsel for the insurer would contend that the Tribunal has grossly erred by not deducting the tax from the net income and has taken the income at Rs.42,000/-. As such, if average tax returns is taken, the same would be Rs.6,000/-. Thus, the Tribunal ought to have deducted the income tax returns at Rs.6,000/- from Rs.42,000/- and ought to have assessed the income of the deceased at Rs.36,000/-. He would also contend that the amounts awarded under all the heads are exorbitant and the same requires to be reduced. Accordingly, he would pray to allow the appeal. 8. Per contra, learned counsel for the claimants would support the impugned judgment and award and would contend that the Tribunal has rightly awarded the compensation, as such, the same does not require any interference at the hands of this Court. 9. I have given my anxious consideration to the submissions of learned counsel for both the parties. - 5 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 10. As could be gathered from records, the income of the deceased was taken at Rs.42,000/- without deducting the tax. As rightly contended by the learned counsel for the insurer, it would be just and prudent to deduct a sum Rs.6,000/- towards income tax from the net income, which would make the income to be Rs.36,000/-. 11. Since there are three dependents, 1/3rd is required to be deducted towards personal expenses. Accordingly, his monthly income would be Rs.24,000/-. The income of the deceased for the purpose of determining the loss of dependency would thus be Rs.24,000/- and as the deceased was aged about 63 years, a multiplier of '7' has to be applied. 12. Consequently, the claimants would be entitled to a sum of Rs.20,16,000/- (Rs.24,000 x 12 x 7) towards “loss of dependency”. 13. As regards the sum of Rs.2,60,882/- awarded by the Tribunal towards medical expenses, the learned counsel for the insurer contended that the amount paid by the STAR HEALTH ISURANCE is to be deducted from the said compensation as the - 6 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 claimants had only paid a sum of Rs.69,000/- and without deducting the same, the Tribunal has awarded a sum of Rs.2,60,882/-. In the view of the law laid down by the Apex court in the case of NEW INDIA ASSURANCE CO. LTD. V. DOLLY SATISH GANDHI & ANOTHER (Civil Appeal No. 3452 of 2026), medical expenses reimbursed under a Mediclaim policy cannot be deducted from compensation awarded by a Motor Accident Claims Tribunal (MACT). As statutory compensation under the Motor Vehicles Act and contractual reimbursement under Mediclaim operate in separate domains, so receiving both does not amount to unjust enrichment. Therefore, the claimants are entitled to the sum of Rs.2,60,882/- awarded by the Tribunal towards medical expenses. 14. The claimants, being the wife and two children, each would be entitled to a sum of Rs.48,400/- towards “loss of consortium” i.e., in all Rs.1,45,200/-and they would also be entitled to a sum of Rs.36,300/- under the “conventional heads”. - 7 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 15. Thus, the claimants, in modification of the impugned award, would be entitled to the following sums: Sl. No. Particulars Amount (In Rs.) 1. Loss of Dependency 20,16,000 2. Loss of Consortium 1,45,200 3. Conventional Heads 36,300 4. Medical expenses 2,60,882 Total 24,58,382 16. Accordingly, the claimants would be entitled for compensation of Rs.24,58,382/- as against Rs.27,47,882/- awarded by the Tribunal, along with interest at the rate of 6% per annum from the date of petition till its realization. 17. The Insurer is directed to deposit the amount of compensation awarded within a period of six weeks from the date of receipt of a certified copy of this judgment. 18. The amount in deposit shall be transferred to the concerned Tribunal. - 8 - HC-KAR CNR: KAHC010310572020 NC: 2026:KHC:36505 MFA No. 4588 of 2020 19. The apportionment of compensation amount shall be in terms of the award of the Tribunal. The appeal is accordingly allowed in part. SD/- (RAJESH RAI K) JUDGE PKS List No.: 1 Sl No.: 41