Case Note & Summary
The present appeals under Section 173 of the Motor Vehicles Act, 1988 arise from a common judgment and award dated 29.12.2023 passed by the Motor Accident Claims Tribunal (Auxi), Ahmedabad (Rural) in MAC Petition Nos.408 of 2015 and 409 of 2015. The appellants, original claimants, are the legal heirs of two deceased persons who died in a motor vehicle accident. The case of the claimants was that on the relevant date, the deceased were traveling in a car bearing registration No. GJ-12-AK-0692 driven by a friend, which collided with a truck, resulting in fatal injuries. The Tribunal awarded compensation but the claimants felt the quantum was inadequate and filed the present appeals. The main legal issues were whether the Tribunal correctly deducted 1/3rd towards personal expenses for the deceased who were bachelors, whether future prospects should be added, whether the correct multiplier was applied, and whether the notional income assessed was proper. The appellants argued that for bachelor deceased, deduction should be 50% as per Sarla Verma v. DTC, and that 40% future prospects should be added as per Pranay Sethi. The respondent insurance companies opposed, contending that the award was just and fair. The High Court analyzed the evidence and found that the deceased were aged 22 and 25 years, bachelors, and self-employed. The Court held that the deduction towards personal expenses should be 50% instead of 1/3rd, future prospects of 40% should be added, the multiplier should be 18 (based on age of deceased), and notional income should be enhanced to Rs. 5,000 per month. The Court accordingly recalculated the compensation and enhanced the award amounts. The appeals were allowed, and the insurance companies were directed to pay the enhanced compensation with interest.
Headnote
A) Motor Accident Compensation - Deduction for Personal Expenses - Bachelor Deceased - For a bachelor deceased, the deduction towards personal and living expenses is 50% and not 1/3rd as per settled law - The Tribunal's deduction of 1/3rd was erroneous and set aside (Paras 6-7). B) Motor Accident Compensation - Future Prospects - Self-Employed - Addition of 40% towards future prospects is permissible for self-employed persons aged below 40 years as per National Insurance Co. Ltd. v. Pranay Sethi - The Tribunal failed to add future prospects (Paras 8-9). C) Motor Accident Compensation - Multiplier - Age of Deceased - The multiplier is to be applied based on the age of the deceased, not the claimant - Tribunal applied multiplier of 15 instead of 18 for deceased aged 22 years (Paras 10-11). D) Motor Accident Compensation - Notional Income - Absence of Proof - In the absence of income proof, notional income of Rs. 3,000 per month assessed by Tribunal was too low; enhanced to Rs. 5,000 per month considering the year of accident (2015) (Paras 12-13).
Issue of Consideration
Whether the Tribunal erred in deducting 1/3rd towards personal expenses instead of 50% for bachelor deceased, and in assessing income and multiplier?
Final Decision
The appeals are allowed. The common judgment and award dated 29.12.2023 passed by the Motor Accident Claims Tribunal (Auxi), Ahmedabad (Rural) in MAC Petition Nos.408/2015 and 409/2015 is modified. The compensation amounts are enhanced as per the calculations in the judgment. The respondent insurance companies are directed to deposit the enhanced compensation with interest within eight weeks.
Law Points
- Deduction towards personal expenses for bachelor deceased is 50%
- not 1/3rd
- Future prospects addition of 40% for self-employed
- Multiplier based on age of deceased
- Notional income assessment for deceased without proof of income
- Contributory negligence not established
- Section 173 Motor Vehicles Act
- 1988 appeal
