Case Note & Summary
The appeal arises from a judgment and award dated 19/01/2015 passed by the Claims Tribunal, Chandrapur in M.A.C.P. No.112/2006, whereby the Tribunal partly allowed the claim petition under Section 166 of the Motor Vehicles Act, 1988 and awarded compensation of Rs.6,13,792/- inclusive of no fault liability, with interest at 6% per annum from the date of petition. The claimants, being the widow, three minor children, and mother of the deceased Homesh Walke, challenged the award on the ground that the Tribunal erred in calculating compensation based on a monthly salary of Rs.4,873/- instead of Rs.6,495/- as per the salary certificate produced. They also contended that the Tribunal wrongly deducted 1/3rd towards personal expenses when there were four dependents, warranting a deduction of 1/4th. The High Court, after hearing counsel for the appellants and respondent No.2, found merit in the submissions. The Court noted that the salary certificate clearly showed the deceased's salary as Rs.6,495/- per month, and the Tribunal's adoption of a lower figure was erroneous. Further, following the principle in Sarla Verma v. Delhi Transport Corporation, the deduction for personal expenses should be 1/4th when the number of dependents is 4 to 6. The Court recalculated the compensation: annual income Rs.77,940 (Rs.6,495 x 12), less 1/4th personal expenses (Rs.19,485), leaving Rs.58,455; applying multiplier 17 gives Rs.9,93,735; adding Rs.70,000 under conventional heads (loss of consortium Rs.40,000, loss of estate Rs.15,000, funeral expenses Rs.15,000) and Rs.15,000 for loss of love and affection to minor children, total Rs.10,78,735. After deducting Rs.50,000 already paid under no fault liability, the enhanced compensation is Rs.10,28,735. The Court directed the insurance company to pay the enhanced amount with interest at 6% per annum from the date of petition, within six weeks.
Headnote
A) Motor Accident Claims - Compensation Calculation - Salary Assessment - Section 166 Motor Vehicles Act, 1988 - The Tribunal erred in adopting a monthly salary of Rs.4,873 when the salary certificate produced by the claimants proved the deceased's salary was Rs.6,495 per month. Held that the actual salary must be considered for computing loss of dependency (Paras 4-5). B) Motor Accident Claims - Personal Expenses Deduction - Number of Dependents - Section 166 Motor Vehicles Act, 1988 - The Tribunal incorrectly deducted 1/3rd towards personal expenses when there were four dependents. As per settled law, deduction should be 1/4th. Held that the deduction is reduced to 1/4th (Para 5). C) Motor Accident Claims - Multiplier - Age of Deceased - Section 166 Motor Vehicles Act, 1988 - The Tribunal applied multiplier of 17 based on the deceased's age of 30 years. Held that the multiplier of 17 is correct and not in dispute (Para 5).
Issue of Consideration
Whether the Claims Tribunal erred in calculating compensation based on a monthly salary of Rs.4,873 instead of Rs.6,495 as per salary certificate, and in deducting 1/3rd towards personal expenses instead of 1/4th given four dependents.
Final Decision
Appeal allowed. Impugned judgment and award modified. Compensation enhanced to Rs.10,78,735/-. After deducting Rs.50,000 paid under no fault liability, the enhanced compensation is Rs.10,28,735/-. Respondent No.1 Insurance Company directed to pay the enhanced amount with interest at 6% per annum from the date of petition within six weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation calculation
- Salary certificate
- Personal expenses deduction
- Multiplier
- Dependency
