Case Note & Summary
The case arises from a motor accident claim where Vinod, a 22-year-old unmarried man, died after falling from a city bus on 9 September 1993. His parents, Natthu and Sakwarbai Pancham, filed a claim petition before the Motor Accident Claims Tribunal, Nagpur, seeking compensation of Rs.5,00,000/-. The Tribunal, considering the deceased's age and income, awarded Rs.2,84,136/- inclusive of no-fault liability. The appellant, Maharashtra State Road Transport Corporation (MSRTC), challenged the award, arguing that the Tribunal erred in assuming the loss of dependency and in applying a multiplier of 17. The respondents, the parents of the deceased, supported the award. The High Court framed the issue of whether the Tribunal correctly computed loss of dependency and applied the correct multiplier. The Court noted that the Tribunal assumed the deceased's monthly income at Rs.2,000/- despite the father's statement that the deceased earned Rs.1,800/- per month, but found this assumption justified. However, the Court held that since the deceased was unmarried, the deduction for personal and living expenses should be 50% and not 1/3rd as applied by the Tribunal. The multiplier of 17 was upheld as appropriate for a deceased aged 22-23 years. The Court recalculated the compensation: annual income Rs.24,000/-, 50% deduction (Rs.12,000/-), loss of dependency Rs.12,000/- x 17 = Rs.2,04,000/-, plus Rs.25,000/- for loss of love and affection and loss of estate, Rs.5,000/- for funeral expenses, less Rs.25,000/- for no-fault liability, totaling Rs.2,09,000/-. The appeal was partly allowed, modifying the award to Rs.2,09,000/- with interest at 9% per annum from the date of filing of the appeal till realization.
Headnote
A) Motor Accident Claims - Loss of Dependency - Deduction for Personal Expenses - For an unmarried deceased, deduction towards personal and living expenses should be 50% and not 1/3rd - The Tribunal erred in deducting only 1/3rd - Held that the correct deduction is 50% (Para 6). B) Motor Accident Claims - Multiplier - Applicability - For a deceased aged about 22-23 years, multiplier of 17 is appropriate as per settled law - Tribunal's application of multiplier 17 upheld (Para 6). C) Motor Accident Claims - Compensation - Computation - Annual income assumed at Rs.24,000/- (Rs.2,000/- p.m.), 50% deduction for personal expenses, loss of dependency Rs.12,000/- x 17 = Rs.2,04,000/-, plus Rs.25,000/- for loss of love and affection and loss of estate, Rs.5,000/- for funeral expenses, less Rs.25,000/- for no-fault liability - Total compensation Rs.2,09,000/- (Para 6).
Issue of Consideration
Whether the Tribunal correctly worked out the figure of loss of dependency and whether multiplier 17 is applicable in the present case?
Final Decision
Appeal partly allowed. Judgment and award of Tribunal modified. Claimants entitled to compensation of Rs.2,09,000/- with interest @ 9% p.a. from the date of filing of the appeal till realization.
Law Points
- Deduction for personal expenses of unmarried deceased is 50%
- not 1/3rd
- Multiplier of 17 applicable for deceased aged 22-23 years
- Loss of dependency calculation
- No-fault liability deduction
