Case Note & Summary
The present appeal was filed by the legal heirs of deceased Khetabhai Maljibhai Damor under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 18.09.2015 passed by the Motor Accident Claims Tribunal (Main) at Dahod in MACP No. 87/2010. The deceased, along with others, was traveling in a rickshaw bearing registration No. GJ-1-XX-5054 on 10.01.2010 for religious work. At about 11:00 a.m., near village Mundaheda, the driver (opponent No.1) lost control due to rash and negligent driving, causing the rickshaw to overturn. The deceased sustained fatal injuries and died, while two others were injured. The claimants, being the widow and children of the deceased, filed a claim petition under Section 166 of the Act. The Tribunal partly allowed the petition, awarding Rs.3,08,000 with 9% interest per annum. Aggrieved by the inadequacy, the claimants appealed. The High Court admitted the appeal on 19.09.2016. The learned advocate for the appellants, Mr. MTM Hakim, argued that the Tribunal erred in assessing the income of the deceased at Rs.3,000 per month, failed to consider future prospects, applied an incorrect multiplier of 12 instead of 13, and made excessive deduction of 1/3rd for personal expenses. The Court found merit in these submissions. Relying on the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680 and Sarla Verma v. Delhi Transport Corporation (2009) 6 SCC 121, the Court held that the deceased, aged 45 years, was a skilled labourer earning Rs.3,000 per month. Adding 25% for future prospects, the monthly income was taken as Rs.3,750. After deducting 1/4th for personal expenses (since there were 7 dependents), the monthly loss was Rs.2,812. Applying a multiplier of 13 (as per Sarla Verma for age 41-45), the total loss of dependency was calculated as Rs.4,38,672. Adding Rs.70,000 for conventional heads (loss of consortium, loss of estate, funeral expenses) and Rs.15,000 for loss of love and affection (total Rs.85,000), the total compensation was enhanced to Rs.5,23,672, rounded to Rs.5,72,400. The Court directed the respondent insurance company to deposit the enhanced amount with 9% interest from the date of claim petition, within eight weeks, and allowed the appeal accordingly.
Headnote
A) Motor Accident Claims - Compensation for Death - Negligence - Motor Vehicles Act, 1988, Sections 166 and 173 - The appeal was filed by legal heirs of deceased Khetabhai Maljibhai Damor seeking enhancement of compensation awarded by the Tribunal for death in a rickshaw accident caused by rash and negligent driving of opponent No.1 - The High Court held that the Tribunal erred in not considering future prospects and applied incorrect multiplier and deduction - Compensation enhanced from Rs.3,08,000 to Rs.5,72,400 with 9% interest (Paras 1-7).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the claimants are entitled to enhancement.
Final Decision
Appeal allowed. Impugned judgment and award modified. Total compensation enhanced from Rs.3,08,000 to Rs.5,72,400. Respondent insurance company directed to deposit enhanced amount with 9% interest per annum from date of claim petition till realization within eight weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Compensation for death
- Negligence
- Quantum of compensation
- Future prospects
- Deduction for personal expenses
- Multiplier
