Case Note & Summary
The case arises from a motor accident claim under Section 166 of the Motor Vehicles Act, 1988. The deceased, Mahadev Sargar, aged 35, died in a road accident on 28th August 2008 when a truck driven by respondent No. 6 (Atul Hiralal Vora) hit him. The claimants, widow Lakshmi, minor daughters Komal and Amruta, and parents Ananta and Parubai, sought compensation. The Motor Accident Claims Tribunal awarded Rs. 6,57,000 with interest. The insurance company appealed, challenging the income assessment and future prospects. The High Court reassessed the deceased's income at Rs. 3,000 per month based on evidence of agricultural labour and masonry work, rejecting the claim of Rs. 4,500 as unsubstantiated. Future prospects were not applied as the deceased was a daily wager without permanent employment. The multiplier of 13 and 1/3rd deduction for personal expenses were upheld. The court reduced the compensation to Rs. 3,72,000, allowing the appeal in part and dismissing the cross-objection.
Headnote
A) Motor Accident Compensation - Income Assessment - Deceased's income assessed at Rs. 3,000 per month based on evidence of agricultural labour and occasional masonry work, not Rs. 4,500 as claimed without documentary proof - Held that Tribunal's assessment was excessive and reduced (Paras 10-12). B) Motor Accident Compensation - Future Prospects - Future prospects not applicable as deceased was a daily wager with no evidence of permanent employment or stable income - Held that addition for future prospects is only for those with permanent jobs (Para 13). C) Motor Accident Compensation - Multiplier - Multiplier of 13 applied based on age of deceased (35 years) as per Sarla Verma v. DTC - Held that multiplier is correctly applied (Para 14). D) Motor Accident Compensation - Deduction for Personal Expenses - 1/3rd deduction for personal expenses applied as deceased was married - Held that deduction is correct (Para 15). E) Motor Accident Compensation - Contributory Negligence - No contributory negligence by deceased as accident caused by rash driving of truck driver - Held that Tribunal's finding on negligence is correct (Para 9).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased at Rs. 4,500 per month and in applying future prospects without evidence of permanent employment, and whether the compensation awarded was excessive.
Final Decision
Appeal allowed in part. Compensation reduced from Rs. 6,57,000 to Rs. 3,72,000. Cross-objection dismissed. No order as to costs.
Law Points
- Motor Accident Compensation
- Income Assessment
- Future Prospects
- Multiplier
- Deduction for Personal Expenses
- Contributory Negligence
- Section 166 Motor Vehicles Act
- 1988



