Case Note & Summary
The appellant, Rajesh Pandurang Gawande, filed a First Appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the award of the Motor Accident Claims Tribunal, Akola, in Claim Petition No. 131 of 2006. The claim petition was filed by the original claimants (respondents herein) for compensation for the death of a minor child, Vilas Janrao Sakhare, aged about 10 years, who died in a motor accident on 30th June 2006 involving a truck owned by the appellant and insured with respondent No. 7, New India Assurance Co. Ltd. The Tribunal awarded Rs. 1,50,000 with interest at 6% per annum from the date of petition. The appellant, being the owner of the vehicle, was held liable to pay the compensation. The appellant contended that the compensation was excessive and that the Tribunal erred in not holding the insurance company liable. The respondents (claimants) supported the award. The High Court examined the evidence and found that the Tribunal had taken the notional income of the deceased as Rs. 15,000 per annum, which was contrary to the Second Schedule of the Motor Vehicles Act, 1988, which prescribes Rs. 30,000 per annum for a minor. Applying a multiplier of 15, the loss of dependency was computed as Rs. 4,50,000. Additionally, Rs. 50,000 was awarded for loss of estate and funeral expenses, totaling Rs. 5,00,000. The court held that the insurance company was liable to indemnify the appellant, as the vehicle was insured. The appeal was partly allowed, enhancing the compensation to Rs. 5,00,000 with interest at 6% per annum from the date of petition, and directing the insurance company to pay the enhanced amount.
Headnote
A) Motor Accident Claims - Compensation for Minor Child - Notional Income - Second Schedule of Motor Vehicles Act, 1988 - The Tribunal erred in taking notional income of deceased minor as Rs. 15,000 per annum; the correct notional income as per Second Schedule is Rs. 30,000 per annum. Held that the multiplier of 15 should be applied, and Rs. 50,000 be awarded for loss of estate and funeral expenses. (Paras 8-10) B) Motor Accident Claims - Just Compensation - Principles - Motor Vehicles Act, 1988 - The court emphasized that compensation must be just and fair, not a bonanza but not a pittance. Held that the Tribunal's award of Rs. 1,50,000 was inadequate and enhanced to Rs. 5,00,000. (Paras 11-12)
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal for the death of a minor child is just and proper, and what should be the notional income and multiplier applied.
Final Decision
The appeal is partly allowed. The compensation is enhanced from Rs. 1,50,000 to Rs. 5,00,000 with interest at 6% per annum from the date of petition. The insurance company is directed to pay the enhanced amount to the claimants.
Law Points
- Notional income of minor child
- Second Schedule Motor Vehicles Act 1988
- multiplier for minor
- loss of estate
- funeral expenses
- just and fair compensation
