Case Note & Summary
The appeal arises from a judgment and award dated 7.6.2007 passed by the Motor Accident Claims Tribunal, Yavatmal in Claim Petition No.229/2000, whereby the claimants were awarded compensation of Rs.20,40,000/- on account of the death of Satyagrah Patil in a motor vehicular accident on 25.12.1994. The deceased was a pillion rider on a motorcycle driven by Ghanshyam when a truck coming from the opposite direction dashed against it. The driver survived, but the deceased came under the wheels of the truck and died. At the time of death, the deceased was serving as a welder with Western Coalfields Limited. The Tribunal considered the loss of dependency at Rs.1,20,000 per annum and applied a multiplier of 17 to award compensation. The New India Assurance Company Limited, the appellant, assailed the award on two grounds: first, that the deceased contributed to the accident and liability should be apportioned; second, that the loss of dependency and multiplier were erroneous. The respondents, the claimants, supported the award. The court analyzed the evidence and found that the pillion rider, by not wearing a helmet, contributed to the severity of injuries and thus to the accident, assessing contributory negligence at 50%. Regarding loss of dependency, the court noted that the deceased's monthly income was Rs.2,500, annual income Rs.30,000, and after deducting 1/3rd for personal expenses, the loss of dependency was Rs.20,000 per annum. The court also held that as per Sarla Verma v. Delhi Transport Corporation, the appropriate multiplier for a person aged 38 years is 13, not 17. Consequently, the court reduced the compensation to Rs.1,30,000 (Rs.20,000 x 13 = Rs.2,60,000, then reduced by 50% for contributory negligence). The appeal was partly allowed, modifying the award accordingly.
Headnote
A) Motor Accident Claims - Contributory Negligence - Pillion Rider - Deceased pillion rider on motorcycle involved in collision with truck - Held that pillion rider, by not wearing helmet, contributed to the severity of injuries and thus to the accident - Contributory negligence assessed at 50% (Paras 5-7). B) Motor Accident Claims - Multiplier - Determination of Multiplier - Deceased aged 38 years at time of death - Tribunal applied multiplier of 17 - Held that as per Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, multiplier for age 36-40 should be 15, but considering deceased's age of 38, multiplier of 13 is appropriate (Paras 8-10). C) Motor Accident Claims - Loss of Dependency - Computation - Deceased earning Rs. 2,500 per month as welder - Tribunal assessed loss of dependency at Rs. 1,20,000 per annum - Held that based on evidence, monthly income was Rs. 2,500, annual income Rs. 30,000, after deducting 1/3rd for personal expenses, loss of dependency is Rs. 20,000 per annum (Paras 8-9).
Issue of Consideration
Whether the deceased pillion rider was contributorily negligent in causing the accident and whether the Tribunal erred in computing loss of dependency and applying multiplier of 17.
Final Decision
Appeal partly allowed. The award of Rs.20,40,000/- is modified to Rs.1,30,000/-. The appellant insurance company is directed to pay the reduced amount with interest at 6% per annum from the date of petition till realization. The award is modified accordingly.
Law Points
- Contributory negligence of pillion rider
- Multiplier as per Sarla Verma v. Delhi Transport Corporation
- Loss of dependency calculation
- Motor Vehicles Act
- 1988 Sections 166
- 168
