Case Note & Summary
The appeal was filed by the National Insurance Co. Ltd. and the owner of the truck against the judgment and award of the Motor Accident Claims Tribunal, Chandrapur, dated 28.03.1994 in M.A.C.P. No. 44/1988. The Tribunal had awarded compensation of Rs.2,73,000/- to the claimants, who are the parents, brothers, and sisters of the deceased Satish Ramteke, who died in a motor vehicular accident on 17.02.1988. The deceased was aged about 26 years and was working as an Electrical Foreman with a monthly salary of Rs.1673.82. The Tribunal assessed the loss of dependency at Rs.14,400/- per annum and applied a multiplier of 20, arriving at Rs.2,88,000/- and directed payment of Rs.2,73,000/- after deducting no fault liability of Rs.15,000/-. The appellant contended that the multiplier of 20 was wrong and the compensation was exorbitant. The respondents supported the award. The High Court examined the evidence and found that the deceased was married and had a wife, but the claimants were his parents and siblings. The Court held that the multiplier should be based on the age of the claimants, not the deceased. The father was aged 51 and mother 46, so the appropriate multiplier was 13 as per the Second Schedule of the Motor Vehicles Act. The multiplicand was computed as Rs.13,390.40 per annum (after deducting one-third for personal expenses). Applying multiplier 13, the total compensation was Rs.1,74,075.20, rounded to Rs.1,74,000/-. The Court allowed the appeal in part, reducing the compensation to Rs.1,74,000/- with interest at 6% per annum from the date of petition.
Headnote
A) Motor Accident Compensation - Multiplier Selection - Multiplier to be based on age of claimants or deceased - In a claim for death of a young person aged 26 years, the multiplier should be determined with reference to the age of the claimants, not the deceased - Held that the Tribunal erred in adopting multiplier of 20; multiplier of 13 applied considering the age of the parents (Paras 5-8). B) Motor Accident Compensation - Multiplicand - Deduction for personal expenses - Deceased, aged 26, married, leaving behind parents and siblings - One-third of income deducted for personal expenses - Monthly income of Rs.1673.82, annual dependency assessed at Rs.13,390.40 - Held that the multiplicand is correctly computed (Paras 6-8).
Issue of Consideration
Whether the multiplier of 20 adopted by the Tribunal was correct in the facts of the case, and what is the proper multiplier and multiplicand for computing compensation.
Final Decision
Appeal allowed in part. Compensation reduced from Rs.2,73,000/- to Rs.1,74,000/- with interest at 6% per annum from the date of petition. The award is modified accordingly.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Compensation
- Multiplier
- Multiplicand
- Dependency
- Sarla Verma v. DTC
