Case Note & Summary
The case arises from a motor accident claim petition filed by the appellants, parents of a 19-year-old deceased student, under Section 166 of the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal awarded compensation of Rs. 8,52,000, including Rs. 1,50,000 for future prospects, Rs. 1,00,000 for loss of love and affection, and Rs. 25,000 for funeral expenses. The High Court, on appeal by the respondent insurer, reduced the compensation to Rs. 5,77,000 by disallowing future prospects, reducing the multiplier from 18 to 15, and reducing non-pecuniary damages. The Supreme Court allowed the appeal, holding that future prospects must be considered even for a non-earning deceased, the multiplier should be based on the age of the deceased (18 as per Sarla Verma), and the Tribunal's award was just. The Court restored the Tribunal's award with interest at 9% per annum from the date of petition.
Headnote
A) Motor Accident Claims - Compensation for Death of Non-Earning Person - Future Prospects - The Supreme Court held that even for a non-earning deceased, future prospects must be considered, and the multiplier should be based on the age of the deceased, not the claimant. The Court restored the Tribunal's award of Rs. 1,50,000 towards future prospects, which the High Court had erroneously set aside. (Paras 1-5) B) Motor Accident Claims - Multiplier - Age of Deceased - The Court reiterated that the multiplier is to be applied based on the age of the deceased, following the settled law in Sarla Verma v. DTC. The High Court's reduction of the multiplier from 18 to 15 was set aside. (Paras 3-5) C) Motor Accident Claims - Compensation - Non-Pecuniary Heads - The Court restored the Tribunal's award of Rs. 1,00,000 for loss of love and affection and Rs. 25,000 for funeral expenses, which the High Court had reduced, holding that the amounts were just and proper. (Paras 4-5)
Issue of Consideration
Whether the High Court was justified in reducing the compensation awarded by the Motor Accident Claims Tribunal for the death of a 19-year-old student, and whether future prospects should be considered for a non-earning deceased.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and restored the Motor Accident Claims Tribunal's award of Rs. 8,52,000 with interest at 9% per annum from the date of petition.
Law Points
- Motor Accident Claims
- Compensation for Death of Non-Earning Person
- Future Prospects
- Multiplier Based on Age of Deceased
- Section 166 Motor Vehicles Act
- 1988
