Case Note & Summary
The present First Appeal under Section 173 of the Motor Vehicles Act, 1988 was filed by Reliance General Insurance Co. Ltd., the insurer of the offending truck, challenging the judgment and award dated 10.02.2021 passed by the Motor Accident Claims Tribunal (Auxiliary), Godhra, in MACP No.229 of 2018. The Tribunal had awarded Rs.23,50,096/- to the claimants, the legal heirs of deceased Kishorbhai Shankarbhai Vanzara, who died in a road accident on 26.05.2018 when a truck driven rashly and negligently hit him from behind. The insurance company contended that the Tribunal erred in applying 30% future prospects instead of 25% for the deceased aged 52 years, and that the compensation was exorbitant. The claimants opposed, arguing that the Tribunal correctly applied 30% and that they were not awarded loss of consortium for each claimant. The High Court, per Justice Hasmukh D. Suthar, analyzed the evidence and found that the deceased was 52 years old, thus future prospects should be 25% as per National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680. The Court recalculated the compensation: monthly income Rs.13,000/- (as per salary slip Exh.23), plus 25% future prospects = Rs.16,250/-, minus 1/4th towards personal expenses = Rs.12,187/-, annual income Rs.1,46,250/-, multiplied by 11 (multiplier for age 52) = Rs.16,08,750/- towards loss of dependency. Additionally, the Court awarded Rs.40,000/- each to the four claimants for loss of consortium (total Rs.1,60,000/-), Rs.15,000/- for loss of estate, and Rs.15,000/- for funeral expenses. The total compensation was reduced to Rs.17,98,750/- with 6% interest from the date of petition. The appeal was partly allowed, modifying the award accordingly.
Headnote
A) Motor Vehicles Act - Compensation - Future Prospects - For a deceased aged 52 years, future prospects should be 25% as per Pranay Sethi, not 30% - The Tribunal erred in applying 30% - Held that the insurance company's appeal is partly allowed and future prospects reduced to 25% (Paras 6-7). B) Motor Vehicles Act - Compensation - Loss of Consortium - Each claimant is entitled to Rs.40,000/- for loss of consortium as per Magma General Insurance - The Tribunal did not award consortium to each claimant - Held that claimants are entitled to Rs.40,000/- each for loss of consortium (Para 8). C) Motor Vehicles Act - Compensation - Multiplier - For deceased aged 52 years, multiplier of 11 is applicable as per Sarla Verma - The Tribunal correctly applied multiplier of 11 - Held that multiplier of 11 is appropriate (Para 7).
Issue of Consideration
Whether the learned Tribunal erred in applying 30% future prospects instead of 25% for a deceased aged 52 years, and whether the claimants are entitled to loss of consortium for each claimant.
Final Decision
The appeal is partly allowed. The impugned judgment and award dated 10.02.2021 is modified. The compensation is reduced from Rs.23,50,096/- to Rs.17,98,750/- with 6% interest per annum from the date of petition till realization. The insurance company is directed to deposit the modified amount within eight weeks. The award is modified accordingly.
Law Points
- Future prospects for self-employed or fixed salary persons above 50 years is 25% as per National Insurance Co. Ltd. v. Pranay Sethi
- (2017) 16 SCC 680
- Loss of consortium for each claimant is Rs.40
- 000/- as per Magma General Insurance Co. Ltd. v. Nanu Ram
- (2018) 18 SCC 130
- Multiplier for age 52 is 11 as per Sarla Verma v. DTC
- (2009) 6 SCC 121
