Case Note & Summary
The appeal challenges the judgment and award dated 10.5.2004 passed by the Motor Accident Claims Tribunal at Mapusa in Claim Petition No. 40/2002. The appellants, mother and sister of the deceased Vijay Suryakant Naik, filed a claim petition seeking compensation of Rs. 5,30,000/- for his death in a motor accident on 11.7.1999. The deceased was a 24-year-old bachelor riding a motorcycle when a rickshaw driven rashly by respondent no.1 collided with him, causing fatal head injuries. The Tribunal awarded Rs. 2,00,000/- with interest at 9% per annum. The appellants appealed for enhancement. The High Court held that the Tribunal erred in not applying the multiplier method and in not properly assessing the income of the deceased. Considering the deceased's income as Rs. 3,000/- per month (as per the post-mortem report and evidence), the court applied a multiplier of 18, deducted 50% for personal expenses, and calculated loss of dependency as Rs. 3,24,000/-. Adding Rs. 26,000/- for funeral expenses and loss of estate, the total compensation was enhanced to Rs. 3,50,000/- with interest at 9% per annum from the date of petition. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Loss of Dependency - Deceased was a 24-year-old bachelor, mother and sister were dependents - Tribunal awarded Rs. 2,00,000/- - High Court enhanced to Rs. 3,50,000/- applying multiplier of 18 and deducting 50% for personal expenses - Held that the compensation should be just and fair, and the multiplier method is appropriate (Paras 4-6).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the appellants are entitled to enhanced compensation.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 2,00,000 to Rs. 3,50,000 with interest at 9% per annum from the date of petition till realization. Respondent no.3 directed to pay the enhanced amount within four weeks.
Law Points
- Motor Accident Claims
- Compensation for loss of dependency
- Multiplier method
- Deduction for personal expenses
- Interest on compensation
Case Details
2010 LawText (BOM) (11) 63
First Appeal No. 209 of 2004
Mr. J. P. Mulgaonkar for Appellants, Mr. E. Afonso for Respondent no.3
Smt. Laxmi Suryakant Naik and Miss Babita S. Naik
Shri Hari Sonu Shetye, Harish S. Shetye, Oriental Insurance Co. Ltd.
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Nature of Litigation
Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation for death in motor accident.
Remedy Sought
Appellants sought enhancement of compensation from Rs. 2,00,000 to Rs. 5,30,000.
Filing Reason
Death of Vijay Suryakant Naik in a motor accident caused by rash and negligent driving of rickshaw by respondent no.1.
Previous Decisions
Motor Accident Claims Tribunal awarded Rs. 2,00,000 with interest at 9% per annum.
Issues
Whether the compensation awarded by the Tribunal is just and proper?
Whether the multiplier method should be applied?
What is the correct income of the deceased and appropriate deduction for personal expenses?
Submissions/Arguments
Appellants argued that the Tribunal erred in not applying the multiplier method and in assessing the income of the deceased at Rs. 1,500 per month instead of Rs. 3,000 per month.
Respondent no.3 (Insurance Company) supported the Tribunal's award.
Ratio Decidendi
In motor accident claims, compensation for loss of dependency should be calculated using the multiplier method based on the income of the deceased, with appropriate deduction for personal expenses. For a bachelor, 50% deduction is appropriate. The multiplier should be as per the age of the deceased.
Judgment Excerpts
The Tribunal has not applied the multiplier method while computing the compensation.
Considering the age of the deceased as 24 years, the multiplier applicable would be 18.
The loss of dependency would be Rs. 3,24,000/-.
Procedural History
Claim Petition No. 40/2002 filed before Motor Accident Claims Tribunal at Mapusa, which awarded Rs. 2,00,000 on 10.5.2004. Appellants filed First Appeal No. 209 of 2004 before the High Court of Bombay at Goa.
Acts & Sections
- Motor Vehicles Act, 1988: Section 166
