Case Note & Summary
The appellants, being the widow and minor son of the deceased Sk. Yusuf, filed an appeal seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal, Wardha in M.A.C.P. No.117/2006 dated 6.3.2008. The deceased, aged 22 years, was a labourer earning Rs. 3,000 per month. He died in a motor accident on 4.6.2006 when a tipper driven rashly and negligently by respondent No.1 dashed against his scooter. The Tribunal awarded Rs. 2,21,000 with interest at 6% per annum, assessing the deceased's income at Rs. 2,000 per month, applying multiplier of 18, deducting 1/3rd for personal expenses, and granting Rs. 5,000 for funeral expenses and Rs. 5,000 for loss of consortium. The Tribunal also held contributory negligence of 50% against the deceased. The appellants contended that the income should be Rs. 3,000 per month, future prospects should be added, and contributory negligence was wrongly attributed. The High Court held that in the absence of documentary evidence, the income should be assessed at Rs. 3,000 per month based on notional income. Following National Insurance Co. Ltd. v. Pranay Sethi, 40% future prospects were added. The multiplier of 18 was correct as per Sarla Verma. Deduction of 1/3rd for personal expenses was proper. The finding of contributory negligence was set aside as there was no evidence. The Court recalculated compensation: Rs. 3,000 income + 40% future prospects = Rs. 4,200; annual income Rs. 50,400; after 1/3rd deduction, Rs. 33,600; multiplied by 18 = Rs. 6,04,800; plus Rs. 15,000 for loss of consortium, Rs. 15,000 for loss of estate, and Rs. 15,000 for funeral expenses, total Rs. 6,49,800. The appeal was allowed, enhancing compensation to Rs. 6,49,800 with interest at 6% per annum from the date of petition till realization. Respondent No.3, the insurer, was directed to pay the enhanced amount.
Headnote
A) Motor Accident Compensation - Assessment of Income - Deceased was a labourer aged 22 years - In absence of documentary evidence, income assessed at Rs. 3,000 per month based on notional income - Held that Tribunal erred in assessing income at Rs. 2,000 per month (Paras 7-8). B) Motor Accident Compensation - Future Prospects - Deceased was self-employed - 40% addition towards future prospects as per National Insurance Co. Ltd. v. Pranay Sethi - Held that Tribunal erred in not granting future prospects (Para 9). C) Motor Accident Compensation - Multiplier - Deceased aged 22 years - Multiplier of 18 applied by Tribunal - Correct multiplier as per Sarla Verma is 18 - Held that multiplier of 18 is appropriate (Para 10). D) Motor Accident Compensation - Deduction for Personal Expenses - Deceased was married - Deduction of 1/3rd towards personal expenses - Held that Tribunal correctly deducted 1/3rd (Para 11). E) Motor Accident Compensation - Contributory Negligence - No evidence of contributory negligence by deceased - Held that Tribunal erred in holding contributory negligence (Para 12). F) Motor Accident Compensation - Liability of Insurer - Insurance company liable to pay compensation - Held that respondent No.3 is liable to pay enhanced compensation (Para 13).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal is just and proper and whether the appellants are entitled to enhancement.
Final Decision
The appeal is allowed. The compensation is enhanced from Rs. 2,21,000 to Rs. 6,49,800 with interest at 6% per annum from the date of petition till realization. Respondent No.3, The New India Assurance Co. Ltd., is directed to pay the enhanced amount within six weeks.
Law Points
- Assessment of income in absence of documentary evidence
- future prospects for self-employed
- multiplier as per Sarla Verma
- deduction for personal expenses
- contributory negligence not established
- liability of insurer
