Case Note & Summary
The appeal arises from a judgment and award dated 11.07.2023 passed by the II Addl. Senior Civil Judge, Kalaburagi in MVC No.549/2020, whereby the Tribunal awarded a total compensation of Rs.13,35,000/- to the claimants (appellants) for the death of Smt. Kalpana in a motor vehicle accident. The appellants, being the legal representatives of the deceased, sought enhancement of compensation. The deceased, aged 35 years, was a housewife and also earned income by tailoring. The Tribunal assessed her notional income at Rs.10,000/- per month, applied multiplier 13, deducted 1/3rd towards personal expenses, and awarded Rs.10,40,000/- under loss of dependency. Additionally, it awarded Rs.40,000/- each to two dependents for loss of consortium, Rs.15,000/- for loss of estate, and Rs.15,000/- for funeral expenses. The High Court, on appeal, found that the Tribunal had erred in applying multiplier 13 instead of 18 as per Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, since the deceased was 35 years old. Further, the Tribunal failed to grant future prospects. Following National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, the Court added 40% future prospects to the notional income. The Court also corrected the deduction for personal expenses to 50% as the deceased was a bachelor. The compensation under loss of consortium was enhanced to Rs.44,000/- each for the two dependents, and loss of estate and funeral expenses were each enhanced to Rs.16,500/-. The total compensation was recomputed as Rs.18,12,000/-. The appeal was allowed in part, with the enhanced amount to be paid with interest at 6% per annum from the date of petition till deposit.
Headnote
A) Motor Accident Claims - Just Compensation - Multiplier - The Tribunal erred in applying multiplier of 13 instead of 18 as per Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, since the deceased was aged 35 years. Held that multiplier of 18 is applicable (Paras 10-12). B) Motor Accident Claims - Future Prospects - The Tribunal failed to grant future prospects. As per National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, 40% future prospects should be added for self-employed persons aged below 40 years. Held that 40% future prospects must be added (Paras 13-14). C) Motor Accident Claims - Deduction for Personal Expenses - The deceased was a bachelor, so deduction of 50% towards personal expenses is correct as per Sarla Verma. Held that 50% deduction is proper (Para 15). D) Motor Accident Claims - Loss of Consortium - The Tribunal granted Rs.40,000 each to two dependents. As per Pranay Sethi, each dependent is entitled to Rs.40,000 with 10% escalation every three years. Since the accident occurred in 2020, the amount is enhanced to Rs.44,000 each. Held that each appellant is entitled to Rs.44,000 (Paras 16-17). E) Motor Accident Claims - Loss of Estate and Funeral Expenses - The Tribunal granted Rs.15,000 and Rs.15,000 respectively. As per Pranay Sethi, these amounts are to be Rs.15,000 each with 10% escalation, making it Rs.16,500 each. Held that the amounts are enhanced to Rs.16,500 each (Paras 18-19).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper and whether the appellants are entitled to enhancement under various heads.
Final Decision
Appeal allowed in part. The compensation is enhanced from Rs.13,35,000/- to Rs.18,12,000/-. The enhanced amount shall carry interest at 6% per annum from the date of petition till deposit. The respondent Insurance Company is directed to deposit the enhanced amount within six weeks.
Law Points
- Motor Accident Claims
- Just Compensation
- Multiplier
- Future Prospects
- Deduction for Personal Expenses
- Loss of Consortium
- Loss of Estate
- Funeral Expenses
