Case Note & Summary
The present appeal was filed by the original claimants under Section 173 of the Motor Vehicles Act, 1988, being aggrieved and dissatisfied with the judgment and award dated 31.01.2015 passed by the Motor Accident Claims Tribunal (Auxi), Vadodara in MACP No.1418 of 2004. The brief facts are that on 28.05.2004, the deceased Pramilaben was going to attend a condolence meeting of her relative at Vishrampura on a motorcycle bearing No. GJ 6 BC 8310 as a pillion rider, which was driven by her relative. While they were coming towards Vadodara from Vishrampura, the opponent no.1 came from the back side driving Santro Car bearing No.GJ 6 AB 4955 in a rash and negligent manner and caused the accident. In the said accident, the deceased sustained fatal injuries and succumbed to the injuries. An offence was registered at JP Road Police Station, Vadodara against the respondent no.1. The Tribunal partly allowed the claim petition preferred by the appellants under Section 166 of the Act, 1988, holding them entitled to an amount of Rs.3,91,000/- with interest at the rate of 9% per annum from the date of filing of the claim petition till its actual realization with proportionate costs. The Tribunal did not entertain the claim petition for an amount of Rs.5,00,000/- as total compensation. The High Court admitted the appeal on 06.01.2016. The learned counsel for the appellants submitted that the Tribunal erred in not considering future prospects and in applying the wrong multiplier. The learned counsel for the respondent insurance company supported the award. The Court held that the Tribunal failed to add 25% towards future prospects as per settled law, and applied multiplier of 12 instead of 14 as per Sarla Verma v. DTC. The Court also held that deduction of 1/3rd towards personal expenses was correct. The notional income of Rs.3,000/- per month was considered reasonable. The Court recalculated the compensation: monthly income Rs.3,000/-, add 25% future prospects = Rs.3,750/-, annual income Rs.45,000/-, deduct 1/3rd for personal expenses = Rs.30,000/-, apply multiplier 14 = Rs.4,20,000/-, add Rs.15,000/- for loss of estate, Rs.15,000/- for funeral expenses, Rs.40,000/- for loss of consortium to appellant no.1 (husband), Rs.40,000/- for loss of consortium to appellant no.2 (son), Rs.40,000/- for loss of consortium to appellant no.3 (daughter), total Rs.5,82,000/-. The appeal was allowed, and the award was modified accordingly.
Headnote
A) Motor Accident Claims - Compensation - Future Prospects - Deceased was a housewife aged 45 years - Tribunal failed to add 25% towards future prospects as per settled law - Held that future prospects must be considered even for non-earning members (Paras 6-8). B) Motor Accident Claims - Multiplier - Deceased aged 45 years - Tribunal applied multiplier of 12 instead of 14 as per Sarla Verma v. DTC - Held that correct multiplier is 14 (Para 9). C) Motor Accident Claims - Deduction for Personal Expenses - Deceased was a married woman with dependents - Tribunal deducted 1/3rd towards personal expenses - Held that deduction of 1/3rd is correct (Para 10). D) Motor Accident Claims - Computation of Compensation - Notional Income - Deceased was a housewife - Tribunal assessed notional income at Rs.3,000/- per month - Held that notional income of Rs.3,000/- per month is reasonable (Para 11). E) Motor Accident Claims - Enhancement - Appeal allowed - Compensation enhanced from Rs.3,91,000/- to Rs.5,82,000/- with interest at 9% per annum (Paras 12-13).
Issue of Consideration
Whether the Tribunal erred in not considering future prospects of the deceased and in applying the correct multiplier for computation of compensation under the Motor Vehicles Act, 1988.
Final Decision
Appeal allowed. Impugned judgment and award modified. Compensation enhanced from Rs.3,91,000 to Rs.5,82,000 with interest at 9% per annum from date of claim petition till realization. Appellants entitled to proportionate costs.
Law Points
- Motor Accident Claims
- Compensation
- Future Prospects
- Multiplier
- Deduction for Personal Expenses
- Section 166 Motor Vehicles Act
- 1988
- Section 173 Motor Vehicles Act
