Case Note & Summary
The case arises from a motor accident claim petition filed by the legal representatives of Surendra Naik (deceased) who died in a road traffic accident on 29.10.2016. The deceased was a pillion rider on a motorcycle driven by respondent no.5, which collided with a car owned by respondent no.4. The deceased sustained fatal head injuries and was not wearing a helmet at the time of the accident. The Motor Accidents Claims Tribunal, North Goa, Panaji, by judgment and award dated 21.03.2018, awarded compensation of Rs. 28,08,000/- with interest at 7.5% per annum, holding the insurer (appellant) liable to pay. The insurer appealed, contending that the Tribunal erred in not deducting any amount towards contributory negligence of the deceased for not wearing a helmet. The High Court analyzed the evidence and found that the deceased's failure to wear a helmet contributed to the fatal head injury. The court held that the deceased was guilty of contributory negligence to the extent of 50%. The court then computed the just compensation using the multiplier method: monthly income of Rs. 15,000/-, added 40% towards future prospects, deducted 1/3rd towards personal expenses, applied multiplier of 18, resulting in loss of dependency of Rs. 28,08,000/-. After deducting 50% for contributory negligence, the compensation was reduced to Rs. 14,04,000/-. The court also awarded Rs. 70,000/- under conventional heads (loss of consortium, loss of estate, funeral expenses) but reduced that by 50% as well, resulting in Rs. 35,000/-. The total compensation was fixed at Rs. 14,39,000/-. The insurer was directed to pay the amount with interest at 7.5% per annum from the date of claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Contributory Negligence - Non-wearing of Helmet - The deceased, a pillion rider, died in a motor accident and was not wearing a helmet. The court held that the deceased was guilty of contributory negligence to the extent of 50% for not wearing a helmet, which contributed to the fatal head injury. The compensation awarded by the Tribunal was reduced by 50% on account of contributory negligence. (Paras 6-10) B) Motor Accident Claims - Just Compensation - Structured Formula - The court applied the multiplier method as per Sarla Verma v. DTC, (2009) 6 SCC 121, and deducted 1/3rd towards personal expenses, applied multiplier of 18, and added 40% towards future prospects. The compensation was computed at Rs. 28,08,000/- before deduction for contributory negligence. (Paras 11-14) C) Motor Accident Claims - Deduction for Contributory Negligence - The court deducted 50% from the computed compensation due to the deceased's contributory negligence in not wearing a helmet, reducing the award from Rs. 28,08,000/- to Rs. 14,04,000/-. The insurer was directed to pay the reduced amount with interest at 7.5% per annum from the date of claim petition till realization. (Paras 15-16)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in not deducting any amount towards contributory negligence of the deceased for not wearing a helmet, and whether the compensation awarded was just and proper.
Final Decision
The appeal is partly allowed. The impugned award is modified. The compensation is reduced to Rs. 14,39,000/- (Rupees Fourteen Lakhs Thirty Nine Thousand only) with interest at 7.5% per annum from the date of claim petition till realization. The appellant-insurer is directed to pay the amount within six weeks.
Law Points
- Contributory negligence
- deduction for not wearing helmet
- Motor Vehicles Act
- 1988
- Section 166
- Section 168
- just compensation
- structured formula
- multiplier method
