Case Note & Summary
The case arises from a motor accident claim filed by the dependents of S.T. Devaraju, who died in a car accident on 16.07.2012. The deceased was a Commissioner of Raichur City Municipal Corporation, aged 50 years 3 months, earning Rs.50,463 per month. The claimants, his wife and two children, filed a petition under Section 166 of the Motor Vehicles Act, 1988, seeking Rs.2,00,00,000 compensation. The Tribunal awarded Rs.65,60,347.20, applying a multiplier of 13, 30% future prospects, and deducting 1/3rd for personal expenses and 10% income tax. The Insurance Company appealed to the High Court, which reduced future prospects to 15% and reduced compensation for loss of love and affection, resulting in Rs.57,78,480. The Supreme Court held that since the High Court maintained the multiplier of 13 based on the age group of 40-50 years, it was inconsistent to reduce future prospects to 15% instead of 30% as per Pranay Sethi. The Court also noted that while the first appellant could not get both loss of consortium and loss of love and affection separately, the reduction was not justified. The Supreme Court restored the Tribunal's award, setting aside the High Court's judgment.
Headnote
A) Motor Vehicles Act - Compensation - Future Prospects - Age Group - The High Court erred in reducing future prospects from 30% to 15% for a deceased aged 50 years 3 months, as the age group of 40-50 years was accepted and multiplier of 13 was maintained - Held that future prospects should be 30% as per Pranay Sethi for age group 40-50 years (Paras 8-9). B) Motor Vehicles Act - Compensation - Loss of Consortium and Loss of Love and Affection - When compensation of Rs.1,00,000/- was awarded to the first appellant towards loss of consortium, she was not entitled to another Rs.1,00,000/- under loss of love and affection - However, the High Court's reduction of Rs.1,00,000/- was not justified in the facts (Para 8). C) Motor Vehicles Act - Compensation - Funeral Expenses - The Tribunal awarded Rs.20,000/- for funeral expenses and Rs.25,000/- for transportation of dead body, which was not interfered with by the Supreme Court (Para 8).
Issue of Consideration
Whether the High Court erred in reducing future prospects from 30% to 15% for a deceased aged 50 years 3 months, and in reducing compensation for loss of love and affection and funeral expenses.
Final Decision
Appeal allowed. High Court judgment set aside. Tribunal's award dated 29.09.2015 restored. No order as to costs.
Law Points
- Future prospects calculation based on age group
- not exact age
- Loss of consortium and loss of love and affection cannot be awarded separately to same claimant
- Deduction for family pension not permissible in motor accident compensation
