Case Note & Summary
The appeal was filed by the dependent of the deceased, Basavaraj Shivappa Sangalad (since deceased, represented by his wife Parvati), seeking enhancement of compensation awarded by the III Additional Senior Civil Judge and Additional MACT, Hubballi in MVC No.4/2008 dated 23.12.2014. The deceased, Shivappa Sangalad, aged 60 years, was a coolie who died in a road accident on 20.11.2007 when a TVS Suzuki motorcycle hit him while he was standing near Manu Hotel on P.B. Road. The Tribunal had awarded total compensation of Rs.2,97,000/- with interest at 6% per annum. The appellant contended that the notional income assessed at Rs.4,500/- per month was low, and that future prospects, loss of consortium, loss of estate, and funeral expenses were inadequately awarded. The respondent insurance company argued that the award was just and proper. The High Court upheld the notional income of Rs.4,500/- per month as there was no proof of income, but added 10% towards future prospects as per National Insurance Co. Ltd. v. Pranay Sethi. The multiplier of 9 was confirmed. The Court enhanced loss of consortium from Rs.10,000/- to Rs.40,000/- for each of the three claimants (wife and two daughters), loss of estate from Rs.5,000/- to Rs.15,000/-, and funeral expenses from Rs.5,000/- to Rs.15,000/-. The total compensation was recalculated as Rs.3,78,400/-, with interest at 6% per annum from the date of petition till deposit. The appeal was allowed in part.
Headnote
A) Motor Accident Compensation - Notional Income - Assessment - Deceased was a coolie aged 60 years, no proof of income - Tribunal assessed notional income at Rs.4,500/- per month - Held that notional income of Rs.4,500/- is just and proper, no interference required (Para 8). B) Motor Accident Compensation - Future Prospects - Self-Employed - Deceased aged 60 years - As per National Insurance Co. Ltd. v. Pranay Sethi, 10% addition towards future prospects is permissible - Held that 10% future prospects to be added (Para 9). C) Motor Accident Compensation - Multiplier - Deceased aged 60 years - Appropriate multiplier is 9 as per Sarla Verma v. Delhi Transport Corporation - Held that multiplier of 9 is correct (Para 10). D) Motor Accident Compensation - Loss of Consortium - Spousal and Filial - Claimants include wife and daughters - Tribunal awarded Rs.10,000/- towards loss of consortium - Held that each claimant entitled to Rs.40,000/- towards loss of consortium as per Pranay Sethi (Para 11). E) Motor Accident Compensation - Loss of Estate and Funeral Expenses - Tribunal awarded Rs.5,000/- each - Held that Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses as per Pranay Sethi (Para 12).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper, and whether the appellant is entitled to enhancement.
Final Decision
Appeal allowed in part. Compensation enhanced from Rs.2,97,000/- to Rs.3,78,400/- with interest at 6% per annum from the date of petition till deposit. The insurance company is directed to deposit the enhanced compensation within six weeks.
Law Points
- Notional income assessment
- multiplier method
- future prospects for self-employed
- loss of consortium
- Motor Vehicles Act
- 1988 Section 166
