Case Note & Summary
The present appeal was filed by the claimants, the widow and minor daughter of the deceased, challenging the award of the Motor Accident Claims Tribunal (Auxi), Kheda at Nadiad in MACP No.1635 of 2009 dated 18.04.2019. The Tribunal had partly allowed the claim petition and awarded Rs.3,55,998 with 9% interest. The accident occurred on 10.04.2009 when the deceased, a 45-year-old businessman earning Rs.3,000 per month, was travelling in an auto rickshaw that was hit from behind by an AMTS bus driven rashly and negligently. The deceased sustained grievous injuries and succumbed on 16.04.2009. The claimants sought enhancement of compensation. The High Court identified the main issues as the correctness of the multiplier, addition of future prospects, and consortium awards. The claimants argued that the Tribunal erred in not adding future prospects and in applying a multiplier of 13 instead of 14. The insurance company opposed the appeal. The Court, relying on National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680 and Sarla Verma v. DTC (2009) 6 SCC 121, held that for a self-employed person aged 45, 40% future prospects must be added, and the multiplier should be 14. The Court recomputed the loss of dependency as Rs.3,000 + 40% = Rs.4,200; deducting 1/3rd for personal expenses = Rs.2,800; annual income = Rs.33,600; applying multiplier 14 = Rs.4,70,400. Adding Rs.1,00,000 for medical expenses, Rs.15,000 for funeral expenses, Rs.15,000 for loss of estate, and Rs.40,000 each for loss of consortium to the two claimants (total Rs.80,000), the total compensation was computed as Rs.6,80,400. However, the Court noted that the Tribunal had already awarded Rs.3,55,998, and the enhanced amount was Rs.3,24,402. The Court directed the insurance company to deposit the enhanced amount with 9% interest from the date of petition. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Future Prospects - Deceased aged 45 years, self-employed, income Rs.3,000 per month - Tribunal erred in not adding future prospects - As per National Insurance Co. Ltd. v. Pranay Sethi, 40% addition for future prospects is warranted for self-employed persons below 50 years - Held that compensation must be recomputed with 40% future prospects (Paras 5-7). B) Motor Accident Claims - Loss of Consortium - Spousal and Parental - Appellants entitled to Rs.40,000 each for loss of consortium as per Pranay Sethi - Tribunal awarded only Rs.15,000 under conventional heads - Held that each claimant is entitled to Rs.40,000 for loss of consortium (Para 8). C) Motor Accident Claims - Multiplier - Age of deceased 45 years - Appropriate multiplier is 14 as per Sarla Verma v. DTC - Tribunal applied multiplier of 13 - Held that multiplier of 14 should be applied (Para 7). D) Motor Accident Claims - Medical Expenses - Deceased hospitalized for 7 days - Tribunal awarded Rs.1,00,000 for medical expenses - No evidence to the contrary - Held that medical expenses are correctly awarded (Para 6).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, particularly regarding the computation of income, addition of future prospects, and grant of consortium and other heads.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.3,55,998 to Rs.6,80,400. Insurance company directed to deposit the enhanced amount of Rs.3,24,402 with 9% interest from the date of petition within eight weeks.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Future Prospects
- Loss of Consortium
- Multiplier Method
- Section 166 Motor Vehicles Act
- 1988
