Case Note & Summary
The New India Assurance Co. Ltd. appealed against the judgment and award dated 08.10.2009 of the Motor Accident Claims Tribunal, Nagpur in M.A.C.P. No. 102/2004, which awarded Rs.3,00,000/- compensation for the death of Pravin, a bachelor aged 22, in a motor vehicle accident on 28.12.2003 involving a taxi and a private bus. The claimants were the deceased's parents, Prabhakar and Lilabai. The appellant-insurance company raised two issues: first, that the tribunal should have deducted 50% of the deceased's income towards personal and living expenses instead of 1/3rd, and second, that the multiplier should be based on the age of the claimants (parents) rather than the deceased. The appellant relied on Syed Basheer Ahamed v. Mohd. Jameel (2009 ACJ 690), which held that for a bachelor, the deduction is 50% in the absence of evidence to the contrary. The court agreed, noting that the tribunal had incorrectly applied a 1/3rd deduction based on Bilkish v. United India Insurance Co. Ltd. (2008 (4) SCC 259), which was for a married deceased. On the multiplier issue, the court held that the multiplier should be based on the age of the claimants, as per the Second Schedule to the Motor Vehicles Act, 1988. The claimants were aged 56 and 54, so the appropriate multiplier was 11. The court recalculated the compensation: monthly income Rs.3,000/- (Rs.36,000/- annual), less 50% for personal expenses = Rs.18,000/- annual dependency, multiplied by 11 = Rs.1,98,000/-. Adding Rs.5,000/- for funeral expenses and Rs.5,000/- for loss of estate, total compensation was Rs.2,08,000/-. The appeal was partly allowed, reducing the award from Rs.3,00,000/- to Rs.2,08,000/- with interest at 6% per annum from the date of petition.
Headnote
A) Motor Accident Claims - Deduction for Personal Expenses - Bachelor Deceased - In case of a bachelor deceased, the deduction towards personal and living expenses should be 50% of the income, as per the practice in the absence of contrary evidence, following Syed Basheer Ahamed v. Mohd. Jameel (2009 ACJ 690). (Paras 2-5) B) Motor Accident Claims - Multiplier - Age of Claimants - The multiplier for computing loss of dependency should be chosen having regard to the age of the claimants (parents) rather than the age of the deceased, as per the Second Schedule to the Motor Vehicles Act, 1988. (Paras 2, 6)
Issue of Consideration
Whether the tribunal erred in deducting only 1/3rd instead of 50% of the deceased's income towards personal expenses, and whether the multiplier should be based on the age of the claimants rather than the deceased.
Final Decision
Appeal partly allowed. The compensation awarded by the tribunal is reduced from Rs.3,00,000/- to Rs.2,08,000/- with interest at 6% per annum from the date of petition. The award is modified accordingly.
Law Points
- Deduction for personal expenses of bachelor deceased is 50% of income
- multiplier should be based on age of claimants not deceased
- Motor Vehicles Act 1988 Second Schedule
