Case Note & Summary
The appeal was filed by the insurance company against the award of Rs.10,30,556/- with 7.5% interest by the Motor Accident Claims Tribunal in favour of the widow and two children of the deceased who died in a truck accident. The deceased was aged 55 years. The appellant argued that the multiplier of 14 was excessive and that the claimants, including a major son aged 22 and a daughter aged 18, were not fully dependent. The court agreed, holding that as per Sarla Verma v. DTC, the appropriate multiplier for age 55 is 11. The court also noted that the son was major and the daughter was of marriageable age, reducing dependency. The court recalculated compensation: monthly income Rs.6,000, annual Rs.72,000, less 1/3rd personal expenses = Rs.48,000, multiplied by 11 = Rs.5,28,000, plus Rs.5,000 funeral expenses, Rs.5,000 loss of consortium, Rs.2,500 loss of estate, total Rs.5,40,500. The award was reduced to Rs.5,40,500 with 7.5% interest. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Multiplier Determination - Deceased aged 55 years - Tribunal applied multiplier of 14 which was excessive - Held that multiplier should be 11 as per Sarla Verma v. DTC (2009) 6 SCC 121 - Compensation reduced accordingly (Paras 3-5). B) Motor Accident Claims - Dependency Calculation - Claimants included major son aged 22 and daughter aged 18 - Held that dependency of major son and marriageable daughter is limited - Deduction of 1/3rd for personal expenses of deceased applied (Paras 3-5). C) Motor Accident Claims - Contributory Negligence - No evidence of contributory negligence by deceased - Tribunal's finding of sole negligence on truck driver upheld (Para 4). D) Motor Accident Claims - Interest Rate - 7.5% per annum from date of petition till realization - Held to be reasonable (Para 5).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was excessive and exorbitant, particularly regarding the multiplier applied and the dependency calculation.
Final Decision
Appeal partly allowed. Compensation reduced from Rs.10,30,556/- to Rs.5,40,500/- with interest at 7.5% per annum from date of petition till realization. No order as to costs.
Law Points
- Motor Accident Claims
- Multiplier Determination
- Dependency Calculation
- Contributory Negligence
- Interest Rate
