Case Note & Summary
The present appeal arises from a judgment and award dated 01.01.2020 passed by the Motor Accident Claims Tribunal (Auxi.), Bhavnagar, in Motor Accident Claim Petition No.305 of 2016. The appellants, Balabhai Devabhai Parmar Charoliya and another, are the original claimants, being the parents of the deceased Jayshriben. The respondents include the driver, owner, and insurer of the truck involved in the accident. The case involves a fatal accident that occurred on 16.08.2016 when the deceased, a pedestrian, was walking on the Budhel Mamsa Highway Road. The opponent no.1 drove a truck bearing registration No. GJ-4-U-9682 in a rash and negligent manner, lost control, and dashed against the deceased, causing fatal injuries. A criminal complaint, I-C.R. No.99 of 2016, was registered with Vartej Police Station. The claimants filed a claim petition seeking compensation, which was allowed by the Tribunal. However, the claimants felt aggrieved by the quantum of compensation and filed the present appeal under Section 173 of the Motor Vehicles Act, 1988. The main legal issues considered were whether the Tribunal erred in computing compensation by not considering future prospects and applying the correct multiplier. The appellants argued that the Tribunal failed to add 40% future prospects to the notional income of the deceased and applied a multiplier of 13 instead of 18, as the deceased was 25 years old. The respondent insurance company supported the Tribunal's award. The court analyzed the evidence and found that the Tribunal had correctly determined negligence but erred in compensation calculation. The court held that the deceased, being self-employed, was entitled to 40% future prospects as per the settled law in National Insurance Co. Ltd. v. Pranay Sethi. The multiplier should be 18 based on the deceased's age. The court recalculated the compensation, enhancing it from Rs. 10,50,000/- to Rs. 17,64,000/-, with interest at 7.5% per annum from the date of petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Future Prospects - Section 166, Motor Vehicles Act, 1988 - The Tribunal failed to add 40% future prospects to the deceased's notional income and applied multiplier of 13 instead of 18 based on the deceased's age of 25 years - Held that the appellants are entitled to enhanced compensation with 7.5% interest per annum (Paras 5-7). B) Motor Accident Claims - Negligence - Contributory Negligence - Section 168, Motor Vehicles Act, 1988 - The Tribunal found the accident occurred due to rash and negligent driving of the truck driver, and no contributory negligence was attributed to the deceased - Held that the finding of negligence is correct and not interfered with (Para 3).
Issue of Consideration
Whether the Tribunal erred in computing compensation by not considering future prospects and applying correct multiplier, and whether the appellants are entitled to enhanced compensation.
Final Decision
The appeal is partly allowed. The judgment and award dated 01.01.2020 is modified. The appellants are entitled to total compensation of Rs. 17,64,000/- with interest at 7.5% per annum from the date of petition till realization. The insurance company is directed to deposit the enhanced amount within eight weeks.
Law Points
- Motor Accident Claims
- Compensation Enhancement
- Future Prospects
- Multiplier
- Negligence
- Contributory Negligence
- Interest Rate





