Case Note & Summary
The present appeal under Section 173 of the Motor Vehicles Act, 1988 arises from a judgment and award dated 03.09.2025 passed by the Motor Accident Claims Tribunal (Auxi.), Dahod in MAC Petition No.45 of 2018. The appellants, original claimants, are the widow and five children of the deceased Kamleshbhai Parsingbhai Bhabhor, who died in a motor vehicle accident on 23.12.2017. The deceased was riding a motorcycle when a Maruti Van driven rashly by the opponent no.1 dashed against him, causing fatal injuries. A complaint was lodged at Mahemdabad Police Station being C.R. No.I-154/2017. The claimants sought compensation, and the Tribunal partly allowed the petition, awarding Rs. 7,50,000/- with interest at 7.5% per annum. Aggrieved by the inadequacy of the quantum, the claimants filed the present appeal. The main legal issues were whether the Tribunal erred in deducting 1/3rd towards personal expenses instead of 1/4th for a married deceased with six dependents, and in not granting future prospects. The appellants argued that as per Sarla Verma v. DTC, (2009) 6 SCC 121, the deduction should be 1/4th, and as per National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, 40% future prospects should be added for a self-employed deceased aged 40 years. The respondent Insurance Company opposed the appeal. The court analyzed the evidence and found that the deceased was 40 years old, self-employed, and had six dependents. Applying the principles from Sarla Verma and Pranay Sethi, the court held that the Tribunal erred in deducting 1/3rd instead of 1/4th and in not granting future prospects. The court recalculated the compensation: monthly income of Rs. 3,000/- (as per Tribunal), adding 40% future prospects (Rs. 1,200/-), total Rs. 4,200/-; deducting 1/4th for personal expenses (Rs. 1,050/-), dependency Rs. 3,150/- per month; annual dependency Rs. 37,800/-; applying multiplier 15, total loss of dependency Rs. 5,67,000/-. Adding conventional heads (Rs. 70,000/- for loss of consortium, etc.) and funeral expenses (Rs. 15,000/-), total compensation was enhanced to Rs. 6,52,000/- from Rs. 7,50,000/-. The court allowed the appeal, setting aside the Tribunal's award and directing the Insurance Company to pay the enhanced amount with interest at 7.5% per annum from the date of petition till realization, within eight weeks.
Headnote
A) Motor Accident Claims - Compensation - Personal Expenses - Deduction of 1/4th instead of 1/3rd for married deceased with 6 dependents - Held that as per Sarla Verma v. DTC, (2009) 6 SCC 121, deduction for personal expenses should be 1/4th when number of dependents is 4 to 6, and Tribunal erred in deducting 1/3rd (Paras 5-6). B) Motor Accident Claims - Future Prospects - Addition of 40% for self-employed deceased aged 40 years - Held that as per National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, future prospects of 40% should be added for self-employed persons aged below 40 years, and Tribunal erred in not granting any future prospects (Paras 7-8). C) Motor Accident Claims - Multiplier - Application of multiplier of 15 for deceased aged 40 years - Held that as per Sarla Verma v. DTC, (2009) 6 SCC 121, multiplier of 15 is applicable for age group 36-40 years, and Tribunal correctly applied multiplier of 15 (Para 9).
Issue of Consideration
Whether the Tribunal erred in deducting 1/3rd towards personal expenses instead of 1/4th for a married deceased with 6 dependents, and in not granting future prospects as per settled law.
Final Decision
Appeal allowed. The judgment and award of the Tribunal dated 03.09.2025 is set aside. The Insurance Company is directed to pay the enhanced compensation of Rs. 6,52,000/- 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
- Compensation
- Personal Expenses
- Future Prospects
- Multiplier
- Dependency
