Case Note & Summary
The appellants, original claimants, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, aggrieved by the judgment and award dated 02.09.2022 passed by the Motor Accident Claims Tribunal (Auxi.), Petlad, in MACP No.18 of 2020. The claim arose from a fatal accident on 06.03.2020 when the deceased, a pedestrian walking with her daughter on ITI By-pass road, Zalod, was hit by a trailer driven rashly and negligently by opponent no.1, resulting in her death. The Tribunal partly allowed the claim petition. The appeal was limited to two grounds: first, that the Tribunal did not consider the minimum wages prevalent at the time of the accident for computing loss of dependency; second, that the Tribunal granted consortium only to the widow and not to each of the five appellants. The High Court heard Mr. N.A. Bhalodi for the appellants and Ms. A.N. Bhatt for the respondent Insurance Company. The Court found merit in the appeal, holding that the Tribunal ought to have applied the minimum wages as per the Minimum Wages Act, 1948, and that each claimant is entitled to consortium. Consequently, the Court enhanced the compensation by Rs. 1,50,000/- (Rs. 40,000/- each for four claimants for consortium and Rs. 10,000/- for funeral expenses) and directed the Insurance Company to deposit the enhanced amount with 7.5% interest per annum from the date of petition till realization, within eight weeks.
Headnote
A) Motor Accident Claims - Computation of Compensation - Minimum Wages - The Tribunal failed to consider the prevalent minimum wages for the deceased, who was a pedestrian, leading to inadequate loss of dependency - Held that the income should be assessed based on minimum wages applicable at the time of the accident (Paras 4-5). B) Motor Accident Claims - Consortium - Entitlement of All Claimants - The Tribunal granted consortium only to the widow, ignoring the other appellants (children) - Held that each claimant is entitled to consortium under the principles laid down in Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130 (Paras 4-5).
Issue of Consideration
Whether the Tribunal erred in not considering the prevalent minimum wages and in not granting consortium to each appellant while computing compensation under the Motor Vehicles Act, 1988.
Final Decision
Appeal allowed. The judgment and award dated 02.09.2022 is modified. The respondent Insurance Company is directed to deposit an additional amount of Rs. 1,50,000/- with interest at 7.5% per annum from the date of petition till realization within eight weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Minimum Wages Act
- 1948
- Consortium
- Multiplier
- Loss of Dependency
