Case Note & Summary
The present appeal arises from a judgment and award dated 29.07.2024 passed by the Motor Accident Claims Tribunal (Main), Rajkot, in MACP No.859 of 2017. The appellants, who are the legal heirs of the deceased Muljibhai Chhaganbhai Vatukiya, filed the appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation. The deceased, a labourer aged 30 years, died in a road accident on 29.09.2016 when the rickshaw he was traveling in overturned due to rash and negligent driving. The Tribunal awarded total compensation of Rs.3,15,000, which the appellants challenged as inadequate. The High Court heard Mr. N.A. Bhalodi for the appellants and Mr. A.N. Shah for the respondent Insurance Company. The court found that the Tribunal had erred in assessing the deceased's income at Rs.3,000 per month without any basis, and instead assessed it at Rs.4,500 per month based on the minimum wage schedule for a skilled labourer. The Tribunal had also applied a multiplier of 5, which was contrary to the settled principle in Sarla Verma v. DTC, where for a deceased aged 30 years, the multiplier should be 18. The deduction for personal expenses was reduced from 1/3rd to 1/4th as per the number of dependents (4). The court also enhanced the loss of consortium from Rs.40,000 to Rs.1,60,000 (Rs.40,000 x 4 dependents) following Magma General Insurance Co. Ltd. v. Nanu Ram. The funeral expenses and loss of estate were maintained at Rs.15,000 each. The total compensation was recalculated as follows: loss of dependency: Rs.4,500 x 12 x 18 x 3/4 = Rs.7,29,000; loss of consortium: Rs.1,60,000; funeral expenses: Rs.15,000; loss of estate: Rs.15,000; total Rs.9,19,000. The court allowed the appeal, set aside the Tribunal's award, and directed the Insurance Company to pay the enhanced amount with interest at 7.5% per annum from the date of filing of the claim petition till realization.
Headnote
A) Motor Accident Claims - Compensation - Income Assessment - Deceased was a labourer aged 30 years - Tribunal assessed income at Rs.3,000 per month without any basis - High Court held that in absence of evidence, income should be assessed as per minimum wage schedule for skilled labourer at Rs.4,500 per month - Held that Tribunal's assessment was arbitrary and not based on any material (Paras 5-6). B) Motor Accident Claims - Multiplier - Age of Deceased - Deceased was 30 years old - Tribunal applied multiplier of 5 erroneously - High Court held that as per Sarla Verma v. DTC, (2009) 6 SCC 121, multiplier for age group 26-30 is 18 - Held that Tribunal's application of multiplier 5 was perverse and contrary to settled law (Paras 7-8). C) Motor Accident Claims - Deduction for Personal Expenses - Deceased was married and had four dependents - Tribunal deducted 1/3rd towards personal expenses - High Court held that as per Sarla Verma, for 4-6 dependents, deduction should be 1/4th - Held that deduction of 1/3rd was erroneous and modified to 1/4th (Para 9). D) Motor Accident Claims - Loss of Consortium - Tribunal awarded Rs.40,000 to wife only - High Court held that as per Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, each dependent is entitled to Rs.40,000 for loss of consortium - Held that appellants are entitled to Rs.1,60,000 (Rs.40,000 x 4) (Para 10). E) Motor Accident Claims - Funeral Expenses and Loss of Estate - Tribunal awarded Rs.15,000 for funeral expenses and Rs.15,000 for loss of estate - High Court held that as per Pranay Sethi, funeral expenses should be Rs.15,000 and loss of estate Rs.15,000 - Held that these amounts are just and proper (Para 11).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased at Rs.3,000 per month and in applying a multiplier of 5 instead of 18, and whether the compensation awarded under various heads is just and proper.
Final Decision
Appeal allowed. The judgment and award dated 29.07.2024 passed by the Motor Accident Claims Tribunal (Main), Rajkot in MACP No.859 of 2017 is set aside. The appellants are entitled to total compensation of Rs.9,19,000 with interest at 7.5% per annum from the date of filing of the claim petition till realization. The Insurance Company is directed to deposit the enhanced amount within eight weeks.
Law Points
- Income assessment based on minimum wage schedule
- multiplier as per age of deceased
- deduction for personal expenses
- loss of consortium
- funeral expenses
- loss of estate
