Case Note & Summary
The present appeal is against the judgment of the Motor Accident Claims Tribunal, Amravati in M.A.C.P. No. 330 of 2007. The facts giving rise to the appeal are that the deceased, Prakash Bankar, was going from Amravati to Badnera by auto rickshaw bearing No. MH-27-P-8625. When the auto reached near Gandhi Vidyalaya, a truck bearing No. MH-30-A-9238 came from the opposite direction at high speed and dashed into the auto. The deceased was seriously injured and admitted to General Hospital, Amravati, but died. The deceased was serving in P.W.D. and his salary was Rs.7,000 per month. The accident took place due to the rash and negligent driving of the offending truck. The truck was driven by respondent no. 1, owned by respondent no. 2, and insured by respondent no. 3. The claim was filed by the legal heirs of the deceased, assessing compensation at Rs.9,25,060 but quantified at Rs.8,00,000. Respondent nos. 1 and 2 filed a joint written statement denying the claim. Respondent no. 3, The Oriental Insurance Co. Ltd., also filed a written statement denying the claim. Issues were framed. The claimant Chhaya examined herself. The truck driver was examined. The Tribunal concluded that the accident occurred due to the rash and negligent driving of the truck driver but also held the auto driver contributively negligent. The Tribunal assessed the income of the deceased at Rs.3,000 per month, applied a multiplier of 17, deducted 1/3rd towards personal expenses, and awarded Rs.4,08,000 with interest at 6% per annum. The High Court found that the Tribunal erred in taking the income as Rs.3,000 per month without evidence. The salary certificate showed Rs.7,000 per month. The High Court held that the income should be taken as Rs.7,000 per month. Following Pranay Sethi, 50% addition towards future prospects was warranted. The appropriate multiplier as per Sarla Verma was 15. Deduction for personal expenses was 1/4th as there were four dependents. The High Court also set aside the finding of contributory negligence, holding that the accident was solely due to the rash and negligent driving of the truck driver. The compensation was recalculated as follows: income Rs.7,000 + 50% future prospects = Rs.10,500; less 1/4th deduction = Rs.7,875; annual income Rs.94,500; multiplier 15 = Rs.14,17,500; plus Rs.70,000 towards conventional heads = Rs.14,87,500. The appeal was allowed, and the insurance company was directed to pay the enhanced compensation with interest at 6% per annum from the date of petition.
Headnote
A) Motor Accident Claims - Compensation Assessment - Income of Deceased - The deceased was a government employee earning Rs.7,000 per month. The Tribunal erred in taking the income as Rs.3,000 per month without any evidence. The High Court held that the income should be taken as Rs.7,000 per month as per the salary certificate. (Paras 5-6) B) Motor Accident Claims - Future Prospects - The deceased was aged 39 years. Following the principles in National Insurance Co. Ltd. v. Pranay Sethi, 50% addition towards future prospects is warranted. The High Court added 50% to the income. (Para 6) C) Motor Accident Claims - Multiplier - The deceased was aged 39 years. The appropriate multiplier as per Sarla Verma v. DTC is 15. The High Court applied multiplier of 15. (Para 6) D) Motor Accident Claims - Deduction for Personal Expenses - The deceased had four dependents. As per Sarla Verma, deduction for personal expenses is 1/4th. The High Court deducted 1/4th towards personal expenses. (Para 6) E) Motor Accident Claims - Contributory Negligence - The Tribunal held that the driver of the auto rickshaw was negligent. However, the High Court found that the accident was caused solely due to the rash and negligent driving of the truck driver. The finding of contributory negligence was set aside. (Paras 7-8)
Issue of Consideration
Whether the Motor Accident Claims Tribunal correctly assessed the compensation payable to the legal heirs of the deceased, particularly regarding the income of the deceased, future prospects, multiplier, and deduction for personal expenses.
Final Decision
Appeal allowed. The compensation is enhanced from Rs.4,08,000 to Rs.14,87,500. The Oriental Insurance Co. Ltd. is directed to pay the enhanced compensation with interest at 6% per annum from the date of petition. The finding of contributory negligence is set aside.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Future Prospects
- Multiplier
- Deduction for Personal Expenses
- Contributory Negligence
- Rash and Negligent Driving
