Case Note & Summary
The appellants, original claimants, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 30.09.2021 passed by the Motor Accident Claims Tribunal (Auxi.), Mahisagar at Lunawada in MACP No.2759 of 2017. The claimants, being the widow and children of deceased Parmeshwar Dhaneram Pandit, sought enhancement of compensation for his death in a motor accident on 09.10.2016. The deceased, aged 25 years, was riding a motorcycle when he was hit by another motorcycle driven rashly by the opponent. The Tribunal awarded Rs. 14,82,000/- with interest at 7.5% per annum. The claimants appealed contending that the Tribunal erred in applying a multiplier of 13 instead of 18 and in not adding future prospects. The High Court, after hearing both sides, held that as per Sarla Verma v. DTC, the correct multiplier for age 25 is 18. Further, following National Insurance Co. Ltd. v. Pranay Sethi, 40% future prospects must be added for a self-employed person below 40 years. The Court recalculated the loss of dependency as Rs. 3,000 (notional income) + 40% = Rs. 4,200, minus 1/3rd personal expenses = Rs. 2,800 per month, annual Rs. 33,600, multiplied by 18 = Rs. 6,04,800. Adding Rs. 70,000 under conventional heads, total compensation was enhanced to Rs. 6,74,800. The appeal was partly allowed, and the Insurance Company was directed to pay the enhanced amount with interest at 7.5% per annum from the date of petition.
Headnote
A) Motor Accident Compensation - Multiplier Method - Deceased aged 25 years - Tribunal applied multiplier of 13 instead of 18 as per Sarla Verma v. DTC - Held that multiplier of 18 is applicable for age group 21-25 years (Para 5). B) Motor Accident Compensation - Future Prospects - Self-Employed Deceased - Tribunal did not add future prospects - As per National Insurance Co. Ltd. v. Pranay Sethi, 40% addition for self-employed person below 40 years - Held that 40% future prospects must be added (Para 6). C) Motor Accident Compensation - Deduction for Personal Expenses - Deceased was married - Tribunal deducted 1/3rd towards personal expenses - Held that deduction of 1/3rd is correct (Para 7). D) Motor Accident Compensation - Conventional Heads - Tribunal awarded Rs. 70,000 under conventional heads - As per Pranay Sethi, Rs. 70,000 is correct with 10% escalation every three years - Held that no interference is required (Para 8).
Issue of Consideration
Whether the Tribunal erred in computing compensation by applying a multiplier of 13 instead of 18 and by not adding future prospects for a self-employed deceased aged 25 years?
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 14,82,000 to Rs. 6,74,800. Insurance Company directed to pay enhanced amount with interest at 7.5% per annum from date of petition.
Law Points
- Motor Accident Compensation
- Multiplier Method
- Future Prospects
- Self-Employed Deceased
- Section 173 Motor Vehicles Act
- 1988
