Case Note & Summary
The present appeal arises from a judgment and award dated 24.11.2021 passed by the Motor Accident Claims Tribunal, Surendranagar in MACP No.1/2020. The appellants, original claimants, are the legal heirs of the deceased who died in a motor vehicle accident on 27.10.2019. The deceased was riding a motorcycle when a motorcar dashed against him, causing serious injuries. The Tribunal awarded compensation of Rs.4,66,600/- with 9% interest. The appellants appealed under Section 173 of the Motor Vehicles Act, 1988, contending that the Tribunal failed to consider future prospective income and minimum wages. The respondent insurance company opposed, arguing the deceased was 74 years old and lived 14 months post-accident. The High Court, relying on Govind Yadav v. National Insurance Co. Ltd., held that in absence of income proof, minimum wages must be considered. The Court enhanced the deceased's income from Rs.4,000/- to Rs.8,100/- per month (minimum wage for 2019). No addition for future prospects was made due to age. Applying multiplier of 5 (as per Sarla Verma), loss of dependency was recalculated. Medical expenses of Rs.1,00,000/- were upheld. Pain and suffering enhanced from Rs.40,000/- to Rs.70,000/-, loss of consortium from Rs.40,000/- to Rs.1,20,000/-, funeral expenses kept at Rs.15,000/-. Total compensation enhanced to Rs.6,71,000/- with 9% interest from date of petition. The appeal was partly allowed.
Headnote
A) Motor Vehicles Act - Compensation - Minimum Wages - In absence of proof of income, Tribunal must consider prevalent minimum wages - Held that income of deceased assessed at Rs.4,000/- per month by Tribunal was too low and enhanced to Rs.8,100/- per month based on Government approved minimum wages for 2019 (Paras 6-7). B) Motor Vehicles Act - Compensation - Future Prospects - For deceased aged 74 years, no addition for future prospects is permissible as per settled law - Held that Tribunal rightly did not add future prospects (Para 7). C) Motor Vehicles Act - Compensation - Multiplier - For deceased aged 74 years, multiplier of 5 is applicable as per Sarla Verma case - Held that Tribunal applied correct multiplier (Para 7). D) Motor Vehicles Act - Compensation - Medical Expenses - Tribunal awarded Rs.1,00,000/- towards medical expenses which is reasonable - Held that no interference is required (Para 7). E) Motor Vehicles Act - Compensation - Pain, Shock and Suffering - Tribunal awarded Rs.40,000/- which is on lower side - Enhanced to Rs.70,000/- (Para 7). F) Motor Vehicles Act - Compensation - Loss of Consortium - Tribunal awarded Rs.40,000/- which is on lower side - Enhanced to Rs.1,20,000/- (Para 7). G) Motor Vehicles Act - Compensation - Funeral Expenses - Tribunal awarded Rs.15,000/- which is reasonable - No interference (Para 7).
Issue of Consideration
Whether the Tribunal erred in not considering future prospective income and minimum wages while assessing compensation for a deceased aged 74 years?
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.4,66,600/- to Rs.6,71,000/- with interest at 9% p.a. from date of petition till realization. Income of deceased enhanced to Rs.8,100/- per month. No addition for future prospects. Multiplier of 5 applied. Medical expenses Rs.1,00,000/- upheld. Pain and suffering enhanced to Rs.70,000/-, loss of consortium to Rs.1,20,000/-, funeral expenses Rs.15,000/-. Tribunal's award modified accordingly.
Law Points
- Minimum wages to be considered in absence of proof of income
- Future prospective income not applicable for deceased above 60 years
- Compensation enhancement for medical expenses and pain and suffering
