Case Note & Summary
The appeal was filed by the Oriental Insurance Company under Section 173(1) of the Motor Vehicles Act, 1988, challenging the judgment and award dated 22.03.2013 passed by the Special XI Additional Judge and MACT, Bangalore (SCCH-12) in MVC No.3314/2009. The Tribunal had awarded compensation of Rs.6,73,839/- with interest at 6% per annum from the date of petition till realization to the claimant, S. Hanumanthappa (since deceased, represented by his legal representatives), who sustained injuries in a motor vehicle accident. The accident, injuries, and liability of the insurance company were not in dispute. The sole issue was the multiplier applied by the Tribunal for computing loss of future income due to disability. The claimant was aged 61 years at the time of the accident. The Tribunal applied multiplier '13', whereas according to the settled principle in Sarla Verma v. DTC, (2009) 6 SCC 121, the appropriate multiplier for the age group 61-65 is '9'. The appellant insurance company contended that the multiplier should be '9'. The High Court agreed, holding that the Tribunal erred in applying multiplier '13'. Consequently, the High Court recalculated the compensation: loss of future income was reduced from Rs.2,34,000/- to Rs.1,62,000/- (Rs.3,000/- per month x 12 x 9 x 50% disability). The total compensation was reduced from Rs.6,73,839/- to Rs.5,73,839/-. The interest rate of 6% per annum was maintained. The appeal was allowed in part, and the award was modified accordingly.
Headnote
A) Motor Accident Claims - Multiplier Determination - Loss of Future Income - Section 166, Motor Vehicles Act, 1988 - The Tribunal applied multiplier '13' for a claimant aged 61 years, which is contrary to the settled principle in Sarla Verma v. DTC, (2009) 6 SCC 121, where the multiplier for age 61-65 is '9'. The High Court corrected the multiplier to '9' and recalculated compensation accordingly. (Paras 3-5) B) Motor Accident Claims - Compensation for Injuries - Medical Expenses and Pain and Suffering - Sections 166, 168, Motor Vehicles Act, 1988 - The Tribunal awarded Rs.6,73,839/- including medical expenses, loss of income, pain and suffering, etc. The High Court, after correcting the multiplier, reduced the total compensation to Rs.5,73,839/- with interest at 6% per annum. (Paras 4-6)
Issue of Consideration
Whether the Tribunal erred in applying multiplier '13' instead of '9' for computing loss of future income due to disability, given the claimant's age of 61 years.
Final Decision
Appeal allowed in part. Compensation reduced from Rs.6,73,839/- to Rs.5,73,839/- with interest at 6% per annum from the date of petition till realization. The award of the Tribunal is modified accordingly.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Multiplier determination
- Sarla Verma v. DTC guidelines
- Compensation for injuries
- Interest rate
