Case Note & Summary
The appeal arises from a judgment and order dated 5th May 1994 passed by the Motor Accidents Claims Tribunal, Nashik, partly rejecting the claim for compensation filed by the appellants, who are the legal heirs of Anilkumar Meher (deceased). The deceased died in a vehicular accident on 21st March 1992 at the age of 22 years. He was a bachelor and was earning Rs. 1500 per month as a driver. The Tribunal awarded a total compensation of Rs. 1,08,000 with interest at 6% per annum, applying a multiplier of 12 and deducting 1/3rd for personal expenses. The appellants challenged the quantum of compensation. The High Court, relying on the principles laid down in Sarla Verma v. DTC, (2009) 6 SCC 121, held that the appropriate multiplier for the age group of 21-25 is 18, but considering the deceased was a bachelor and the age of the parents, a multiplier of 16 was applied. The deduction for personal expenses for a bachelor should be 50%, not 1/3rd. Further, 50% of the income was added towards future prospects, making the monthly income Rs. 2250. The annual loss of dependency was calculated as Rs. 2250 x 12 x 50% = Rs. 13,500. Applying multiplier 16, the total loss of dependency was Rs. 2,16,000. Additionally, Rs. 15,000 was awarded for loss of estate and funeral expenses. The total compensation was enhanced to Rs. 2,31,000. Interest was enhanced to 7.5% per annum from the date of claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Compensation - Multiplier - Selection of multiplier for deceased aged 22 years - Tribunal applied multiplier of 12, but as per Sarla Verma v. DTC, (2009) 6 SCC 121, multiplier for age group 21-25 is 18; however, considering deceased was bachelor and age of parents, multiplier of 16 is appropriate - Held that multiplier of 16 should be applied (Paras 6-7). B) Motor Accident Compensation - Deduction for Personal Expenses - Deceased bachelor - Tribunal deducted 1/3rd for personal expenses, but as per Sarla Verma, for a bachelor, deduction should be 50% - Held that deduction of 50% is correct (Para 8). C) Motor Accident Compensation - Future Prospects - Deceased aged 22 years, earning Rs. 1500 per month - Tribunal did not add future prospects - As per law, 50% addition for future prospects is warranted for self-employed persons below 40 years - Held that income should be taken as Rs. 2250 per month after adding 50% (Para 9). D) Motor Accident Compensation - Interest Rate - Tribunal awarded interest at 6% per annum - In view of prevailing bank rates, interest rate enhanced to 7.5% per annum from date of claim petition till realization - Held that interest at 7.5% per annum is appropriate (Para 10).
Issue of Consideration
Whether the Motor Accidents Claims Tribunal erred in applying a multiplier of 12 instead of 16 and in deducting 1/3rd for personal expenses of the deceased, and whether the appellants are entitled to enhanced compensation with interest.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 1,08,000 to Rs. 2,31,000. Interest at 7.5% per annum from date of claim petition till realization. Respondent no.3 (Insurance Company) directed to pay the enhanced amount within four weeks.
Law Points
- Multiplier selection under Motor Vehicles Act
- 1988
- Deduction for personal expenses of deceased bachelor
- Future prospects in income calculation
- Interest rate on delayed compensation
