Case Note & Summary
The case arises from a motor accident claim filed by the widow and three minor children of Gopal Krishnan, a rickshaw driver who died in a collision with a jeep on March 14, 1984. The Motor Accident Claims Tribunal awarded Rs. 1,50,000 as compensation. The insurer appealed, challenging the computation. The High Court found that the Tribunal had not deducted any amount towards personal expenses of the deceased, which was erroneous as the deceased was a married man with dependents. Applying the principle that 1/4th should be deducted for personal expenses, the court recalculated the loss of dependency. Further, the Tribunal had applied a multiplier of 16, but the correct multiplier for a person aged 40-45 years as per the Second Schedule is 15. The court recalculated the compensation: monthly income Rs. 600, annual income Rs. 7,200, less 1/4th personal expenses = Rs. 5,400, multiplied by 15 = Rs. 81,000. Adding Rs. 2,000 for funeral expenses and Rs. 5,000 for loss of consortium, total compensation was fixed at Rs. 88,000. The appeal was partly allowed, reducing the award from Rs. 1,50,000 to Rs. 88,000 with interest at 6% per annum from the date of application.
Headnote
A) Motor Accident Claims - Compensation - Deduction of Personal Expenses - Section 166 Motor Vehicles Act, 1988 - The Tribunal erred in not deducting any amount towards personal expenses of the deceased who was a married man with four dependents - Held that deduction of 1/4th towards personal expenses is appropriate as per settled law (Paras 4-5). B) Motor Accident Claims - Compensation - Multiplier - Section 166 Motor Vehicles Act, 1988 - The Tribunal applied multiplier of 16 based on age of deceased (40 years) - Held that as per Second Schedule to Motor Vehicles Act, multiplier for age 40-45 is 15, not 16 - Compensation recalculated accordingly (Paras 6-7).
Issue of Consideration
Whether the Tribunal correctly computed compensation by not deducting personal expenses of the deceased and by applying multiplier of 16 instead of 15.
Final Decision
Appeal partly allowed. Compensation reduced from Rs. 1,50,000 to Rs. 88,000 with interest at 6% per annum from date of application till realization.
Law Points
- Motor Accident Claims
- Compensation Calculation
- Deduction of Personal Expenses
- Multiplier Application
- Section 166 Motor Vehicles Act
- 1988
