Case Note & Summary
The present appeal arises from a motor accident claim petition filed by the legal heirs of the deceased Sikandar Jusab Dharas, who died in a vehicular accident on 28.02.2014. The deceased was travelling in a Bolero Camper Jeep when a truck coming from the wrong side dashed against it, causing fatal injuries to three occupants. The claimants sought compensation of Rs.25,00,000/-. The Motor Accident Claims Tribunal awarded Rs.13,31,000/- with 9% interest, assessing the deceased's notional income at Rs.8,000/- per month and deducting 1/2 towards personal expenses as the deceased was a bachelor. The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, challenging only the quantum. The High Court found that the Tribunal erred in ignoring the salary certificate showing income of Rs.17,000/- per month and in applying a 1/2 deduction instead of 1/3 for a bachelor. The Court reassessed the income at Rs.17,000/-, added 40% for future prospects as per Pranay Sethi, applied a multiplier of 18, deducted 1/3 for personal expenses, and added Rs.70,000/- under conventional heads. The total compensation was enhanced to Rs.22,14,200/- with 9% interest from the date of petition. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation Assessment - Income Determination - Deceased was a heavy vehicle driver earning Rs.17,000/- per month as per salary certificate - Tribunal erred in assessing notional income at Rs.8,000/- ignoring documentary evidence - Held that income should be assessed at Rs.17,000/- per month (Paras 5-6). B) Motor Accident Claims - Deduction for Personal Expenses - Deceased was a bachelor - Tribunal deducted 1/2 towards personal expenses - As per settled law, for a bachelor, 1/3 is to be deducted - Held that deduction should be 1/3 (Para 7). C) Motor Accident Claims - Future Prospects - Deceased aged 28 years - As per National Insurance Co. Ltd. v. Pranay Sethi, 40% addition for future prospects is applicable - Held that 40% should be added (Para 8). D) Motor Accident Claims - Multiplier - Deceased aged 28 years - Appropriate multiplier is 18 as per Sarla Verma v. Delhi Transport Corporation - Held that multiplier of 18 applies (Para 8).
Issue of Consideration
Whether the Tribunal erred in assessing the monthly income of the deceased at Rs.8,000/- on notional basis and in deducting 1/2 towards personal expenses instead of 1/3, and whether the compensation awarded requires enhancement.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.13,31,000/- to Rs.22,14,200/- with 9% interest per annum from the date of petition till realization. The enhanced amount to be deposited by the insurance company within eight weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Compensation Assessment
- Notional Income
- Deduction for Personal Expenses
- Future Prospects
