Case Note & Summary
The case arises from a motor accident that occurred on 21.11.1991 at Curchorem-Sanvordem bridge, resulting in the death of Datta Naik, a carpenter aged 42 years. The appellants, his widow and seven children, filed a claim petition before the Motor Accident Claims Tribunal, Margao, seeking compensation of Rs.5,00,000. The Tribunal awarded Rs.2,52,000 with interest at 12% per annum from the date of petition. The appellants appealed contending inadequacy. The High Court examined the computation: the Tribunal assessed monthly income at Rs.1,500, added Rs.500 for future prospects, deducted 1/5th for personal expenses, applied multiplier 12, and added Rs.10,000 for loss of consortium and Rs.5,000 for funeral expenses. The Court found that the multiplier should be 13 as per Sarla Verma v. DTC, (2009) 6 SCC 121, since the deceased was 42. The deduction of 1/5th was correct given 8 dependents. The addition for future prospects was reasonable. Thus, loss of dependency was recalculated as (Rs.2,000 x 12 x 13 x 4/5) = Rs.2,49,600. Adding Rs.10,000 for consortium and Rs.5,000 for funeral expenses, total compensation was enhanced to Rs.2,64,600. The Court directed the insurance company to pay the enhanced amount of Rs.12,600 with interest at 12% per annum from the date of petition till realization, within six weeks.
Headnote
A) Motor Accident Compensation - Loss of Dependency - Multiplier - The Tribunal applied multiplier of 12 for deceased aged 42 years, but as per Sarla Verma v. DTC, (2009) 6 SCC 121, the correct multiplier is 13. Held that multiplier should be 13 (Para 6). B) Motor Accident Compensation - Deduction for Personal Expenses - Deceased had 8 dependents, so deduction of 1/5th for personal expenses is appropriate as per Sarla Verma. Held that deduction of 1/5th is correct (Para 6). C) Motor Accident Compensation - Future Prospects - Deceased was a self-employed carpenter earning Rs.1,500 per month. No evidence of future prospects, but Tribunal added Rs.500 per month for future prospects. Held that addition of Rs.500 is reasonable (Para 6). D) Motor Accident Compensation - Interest - Tribunal awarded interest at 12% per annum from date of petition. Held that interest rate is fair and no interference needed (Para 7).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was inadequate and requires enhancement.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.2,52,000 to Rs.2,64,600. Respondent No.2 directed to pay the enhanced amount of Rs.12,600 with interest at 12% per annum from the date of petition till realization within six weeks.
Law Points
- Multiplier method for loss of dependency
- Deduction for personal expenses
- Future prospects for self-employed
- Interest on enhanced compensation
