Case Note & Summary
The case arises from a motor accident claim filed by the widow and three daughters of Ramesh Bhimraoji Warghe, who died in a road accident on 8 July 2005 when a tractor driven rashly and negligently by Tarundas Bansi Wankhede, owned by Ishwardas P. Ingale and insured with The New India Assurance Company Limited, hit him from behind while he was walking home. The Motor Accident Claims Tribunal, Amravati, in MACP No. 413 of 2005, awarded compensation of Rs. 3,23,000, assessing the deceased's income at Rs. 3,000 per month and applying a multiplier of 12. The appellants challenged the award, contending that the deceased was a skilled worker earning Rs. 4,500 per month and that the multiplier should be 16. The High Court, after hearing counsel, examined the evidence including oral testimony and documentary proof such as a certificate from the deceased's employer showing income of Rs. 4,500 per month. The court found that the Tribunal had erred in ignoring this evidence and in applying an incorrect multiplier. Following the principles in Sarla Verma v. DTC, (2009) 6 SCC 121, the court held that for a deceased aged 42 years, the appropriate multiplier is 14, not 12. The court recalculated the compensation: annual income Rs. 54,000 (Rs. 4,500 x 12), deducting 1/4th for personal expenses, annual dependency Rs. 40,500, multiplied by 14 gives Rs. 5,67,000. Adding Rs. 5,000 for funeral expenses and Rs. 5,000 for loss of consortium, total compensation was fixed at Rs. 5,77,000. The court directed the insurance company to pay the enhanced amount with interest at 6% per annum from the date of claim petition till realization, and the appeal was allowed accordingly.
Headnote
A) Motor Accident Claims - Compensation - Income Assessment - Deceased was a skilled worker earning Rs. 4,500 per month as per oral evidence and documentary proof - Tribunal erred in assessing income at Rs. 3,000 per month without considering evidence - Held that income should be taken as Rs. 4,500 per month (Paras 4-5). B) Motor Accident Claims - Compensation - Multiplier - Deceased aged 42 years - As per Sarla Verma v. DTC, (2009) 6 SCC 121, multiplier for age 41-45 is 14, but considering age 42, multiplier of 14 is appropriate - Tribunal applied multiplier of 12 erroneously - Held that multiplier of 14 should be applied (Paras 6-7). C) Motor Accident Claims - Compensation - Dependency - Deceased had four dependents - After deducting 1/4th for personal expenses, annual dependency is Rs. 40,500 - Applying multiplier 14, total loss of dependency is Rs. 5,67,000 - Plus Rs. 5,000 for funeral expenses and Rs. 5,000 for loss of consortium - Total compensation Rs. 5,77,000 - Held that appellants are entitled to enhanced compensation with interest at 6% per annum (Paras 8-9).
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in assessing the income of the deceased at Rs. 3,000 per month and in applying a multiplier of 12 instead of 16, and whether the appellants are entitled to enhanced compensation.
Final Decision
Appeal allowed. The compensation awarded by the Tribunal is enhanced from Rs. 3,23,000 to Rs. 5,77,000. The New India Assurance Company Limited is directed to pay the enhanced amount with interest at 6% per annum from the date of claim petition till realization. The award to be satisfied within six weeks.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Multiplier Method
- Income Proof
- Future Prospects
- Dependency Calculation
- Section 166 Motor Vehicles Act
- 1988
