High Court of Bombay at Goa Enhances Compensation for Widow in Motor Accident Claim — Multiplier Corrected from 12 to 15 and Future Prospects Added Under Motor Vehicles Act, 1988. The Court held that for a 33-year-old deceased, the correct multiplier is 15 and 50% future prospects must be added for self-employed persons.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The appellant, Mrs. Lila Agnes Fernandes alias Leena Mascarenhas, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for the death of her husband, Jose Francisco Mascarenhas, in a motor accident on 23.11.2001. The deceased was riding a Kinetic scooter with the appellant as pillion when a tanker driven rashly by respondent no.1 hit them, causing the death of the deceased and another person. The Motor Accident Claims Tribunal, Panaji, partly allowed the claim and awarded Rs.2,01,500/- with interest at 9% per annum on Rs.79,100/-. The appellant appealed for enhancement. The High Court considered the issues of multiplier, future prospects, and income. The Tribunal had applied a multiplier of 12 for the deceased aged 33, but the High Court corrected it to 15 as per Sarla Verma. The Tribunal had not added future prospects; the High Court added 50% as per Rajesh v. Rajbir Singh. The income of Rs.2,200/- per month was upheld. The Court recalculated compensation: annual income Rs.26,400/-; after adding 50% future prospects, Rs.39,600/-; deducting 1/3rd for personal expenses, Rs.26,400/-; applying multiplier 15, loss of dependency Rs.3,96,000/-; adding Rs.10,000/- for loss of consortium, Rs.5,000/- for funeral expenses, and Rs.2,500/- for loss of estate, total Rs.4,13,500/-. The award was enhanced from Rs.2,01,500/- to Rs.4,13,500/- with interest at 9% per annum on the enhanced amount from the date of petition till payment. The appeal was allowed.

Headnote

A) Motor Accident Claims - Compensation - Multiplier - The Tribunal applied multiplier of 12 for a 33-year-old deceased, but the High Court held that as per Sarla Verma v. DTC, (2009) 6 SCC 121, the correct multiplier for age 33 is 15. The Court enhanced the multiplier accordingly. (Paras 5-6)

B) Motor Accident Claims - Future Prospects - The Tribunal did not add future prospects to the income of the deceased. Following Rajesh v. Rajbir Singh, (2013) 9 SCC 54, the Court held that 50% addition for future prospects is warranted for a self-employed person aged 33. (Para 7)

C) Motor Accident Claims - Income Assessment - The Tribunal assessed the deceased's income at Rs.2,200/- per month based on the claimant's testimony. The High Court upheld this finding as no contrary evidence was led. (Para 4)

D) Motor Accident Claims - Contributory Negligence - The Tribunal found no contributory negligence by the deceased. The High Court affirmed this finding as the accident was caused solely by the rash driving of the tanker driver. (Para 3)

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, particularly regarding the multiplier applied, addition of future prospects, and assessment of income.

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Final Decision

The appeal is allowed. The compensation is enhanced from Rs.2,01,500/- to Rs.4,13,500/-. The respondents are directed to pay the enhanced amount with interest at 9% per annum from the date of filing of the petition till payment. The award of the Tribunal is modified accordingly.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 166
  • Compensation
  • Multiplier
  • Future Prospects
  • Contributory Negligence
  • Income Proof
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Case Details

2013:BHC-GOA:2306

First Appeal No. 112 of 2008

2013-09-17

F. M. REIS, J

2013:BHC-GOA:2306

Mr. A. R. S. Netrawalkar for appellant, Mr. E. Afonso for respondent no.3

Mrs. Lila Agnes Fernandes alias Leena Mascarenhas

Shri Maganlal Ramadhar Pal, Shri Lalit Manharlal Nayak, Oriental Insurance Company Ltd.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition under Section 166 of Motor Vehicles Act, 1988.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

The appellant was dissatisfied with the quantum of compensation awarded by the Tribunal for the death of her husband in a motor accident.

Previous Decisions

The Motor Accident Claims Tribunal, Panaji, partly allowed Claim Petition No. 15/2003 and awarded Rs.2,01,500/- with interest at 9% per annum on Rs.79,100/-.

Issues

Whether the multiplier of 12 applied by the Tribunal for a 33-year-old deceased is correct? Whether future prospects should be added to the income of the deceased? Whether the income of the deceased was correctly assessed at Rs.2,200/- per month?

Submissions/Arguments

Appellant argued that the multiplier should be 15 as per Sarla Verma and future prospects should be added as per Rajesh v. Rajbir Singh. Respondent no.3 (Insurance Company) supported the Tribunal's award.

Ratio Decidendi

For a deceased aged 33, the correct multiplier is 15 as per Sarla Verma v. DTC. Future prospects at 50% must be added for self-employed persons as per Rajesh v. Rajbir Singh. The income assessed by the Tribunal at Rs.2,200/- per month is upheld.

Judgment Excerpts

The above appeal challenges the judgment and award dated 22.01.2008 passed by the learned Motor Accident Claims Tribunal, Panaji in Claim Petition No. 15/2003 whereby the Claim Petition filed by the appellant was partly allowed... Considering the age of the deceased as 33 years, the multiplier applicable would be 15 as per the decision of the Apex Court in the case of Sarla Verma v. DTC... Following the decision of the Apex Court in the case of Rajesh v. Rajbir Singh, 50% of the income of the deceased is required to be added towards future prospects...

Procedural History

The appellant filed Claim Petition No. 15/2003 before the Motor Accident Claims Tribunal, Panaji, which was partly allowed on 22.01.2008. The appellant then filed First Appeal No. 112 of 2008 before the High Court of Bombay at Goa challenging the quantum of compensation.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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High Court High Court of Bombay at Goa Enhances Compensation for Widow in Motor Accident Claim — Multiplier Corrected from 12 to 15 and Future Prospects Added Under Motor Vehicles Act, 1988. The Court held that for a 33-year-old deceased, the correct multipli...
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