Case Note & Summary
The appeal was filed by the claimants, the wife, minor children, and parents of deceased Kacharu Rathod, challenging the inadequacy of compensation awarded by the Motor Accident Claims Tribunal, Ahmednagar, in M.A.C.P. No.200 of 1991. The deceased, a 24-year-old labourer, died on 12.05.1991 when he was crushed under the wheels of a truck bearing No.MWA7419 while loading sugarcane. The driver, respondent no.2, reversed the truck without caution. The claimants sought Rs.2,00,000 compensation, claiming the deceased earned Rs.1400 per month. The Tribunal awarded Rs.1,00,000 with interest at 6% per annum, applying a multiplier of 12 and deducting 1/3rd for personal expenses. The High Court found the multiplier of 12 to be erroneous, as per the Second Schedule to the Motor Vehicles Act, 1988, the appropriate multiplier for a person aged 24 is 18. The court also noted that the Tribunal had not considered future prospects, but declined to add them as the deceased's income was not proved to be from permanent employment. The court recalculated compensation: annual income Rs.16,800 (Rs.1400 x 12), less 1/3rd for personal expenses = Rs.11,200, multiplied by 18 = Rs.2,01,600. The court also awarded interest at 6% per annum from the date of petition until realization. The appeal was partly allowed, enhancing compensation to Rs.2,01,600.
Headnote
A) Motor Accident Claims - Compensation Assessment - Multiplier Method - Deceased labourer aged 24 years earning Rs.1400 per month - Tribunal applied multiplier of 12 and deducted 1/3rd for personal expenses - High Court held multiplier of 18 appropriate as per Second Schedule to Motor Vehicles Act, 1988 - Compensation enhanced from Rs.1,00,000 to Rs.2,01,600 with interest at 6% per annum (Paras 6-8). B) Motor Accident Claims - Future Prospects - Deceased was a young labourer with no evidence of permanent employment - High Court declined to add future prospects as income was not proved to be permanent - Held that in absence of proof of permanent employment, future prospects cannot be considered (Para 7). C) Motor Accident Claims - Contributory Negligence - Deceased was loading sugarcane at rear of truck when driver reversed without caution - Tribunal found no contributory negligence - High Court affirmed finding that accident was solely due to rash and negligent driving of driver (Para 5).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was inadequate and requires enhancement.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.1,00,000 to Rs.2,01,600 with interest at 6% per annum from date of petition till realization. Respondents to pay enhanced amount within eight weeks.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Multiplier Method
- Future Prospects
- Contributory Negligence
- Income Proof


