Case Note & Summary
The present appeal was filed by the claimants, Smt. Yeshoda Y. Palyekar and Prakash Yeshwant Palyekar, being aggrieved by the judgment and award dated 28.07.2009 passed by the Motor Accident Claims Tribunal, Mapusa, in Claim Petition No.69 of 2007. The claimants are the wife and son of the deceased Yeshwant Palyekar, who died in a motor vehicle accident on 21.05.2007 at about 06.20 hours at Newwada Colony, Nagzer, Pernem, Goa. The accident occurred when respondent no.1 Babu Bhago Varak drove his mini truck bearing no. GA-01-2-3637 in a rash and negligent manner and dashed against the left side front corner of the house of the claimants, causing the death of Yeshwant Palyekar. The claimants filed a claim petition seeking compensation of Rs. 5,00,000 under the Motor Vehicles Act, 1988. The Tribunal awarded total compensation of Rs. 2,02,500 with interest at 6% per annum from the date of petition till realization. The claimants appealed for enhancement of compensation. The main legal issues were the assessment of notional income of the deceased, who was a housewife, and the application of the correct multiplier and deductions. The appellants argued that the notional income should be Rs. 3,000 per month and the multiplier should be 15. The respondent no.3 insurance company contended that the award was just and proper. The Court analyzed that the deceased was aged 55 years and a housewife, and held that her notional income should be Rs. 3,000 per month. The Court applied multiplier of 15 as per the age of the deceased (though the correct multiplier as per Sarla Verma is 11, but since no cross-appeal, it was not reduced). The Court upheld the deduction of 1/3rd for personal expenses. The Court enhanced the compensation for loss of consortium from Rs. 5,000 to Rs. 10,000 and funeral expenses from Rs. 2,000 to Rs. 5,000. The total compensation was recalculated as Rs. 3,65,000, and the appeal was partly allowed with enhanced compensation and interest at 6% per annum.
Headnote
A) Motor Accident Claims - Compensation for Death of Housewife - Notional Income - The Tribunal assessed notional income of deceased housewife at Rs. 1,500 per month, but the High Court enhanced it to Rs. 3,000 per month considering the deceased was aged 55 years and a housewife, relying on the principle that housework has economic value. (Paras 8-10) B) Motor Accident Claims - Multiplier - Age of Deceased - The appropriate multiplier is based on the age of the deceased, not the claimant. For a deceased aged 55 years, multiplier of 11 is applicable as per Sarla Verma v. DTC, but the Court applied multiplier of 15 erroneously; however, since no cross-appeal by insurer, the Court did not reduce it. (Paras 11-12) C) Motor Accident Claims - Deduction for Personal Expenses - For a married deceased with dependents, deduction of 1/3rd towards personal expenses is appropriate. The Tribunal deducted 1/3rd, which was upheld. (Para 13) D) Motor Accident Claims - Loss of Consortium - The Tribunal awarded Rs. 5,000 for loss of consortium, which was enhanced to Rs. 10,000 as per conventional heads. (Para 14) E) Motor Accident Claims - Funeral Expenses - The Tribunal awarded Rs. 2,000 for funeral expenses, which was enhanced to Rs. 5,000. (Para 14)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in assessing the notional income of the deceased housewife and in applying the correct multiplier and deduction for personal expenses while computing compensation under the Motor Vehicles Act, 1988.
Final Decision
Appeal partly allowed. The compensation is enhanced from Rs. 2,02,500 to Rs. 3,65,000 with interest at 6% per annum from the date of petition till realization. The enhanced amount shall be deposited by respondent no.3 within eight weeks.
Law Points
- Notional income for housewife
- multiplier as per age of deceased
- deduction for personal expenses
- compensation under Motor Vehicles Act
- 1988
