Case Note & Summary
The appeal was filed by the claimants, Smt. Shivamma, Sri. Ayanna, and Renuka, who are the mother, father, and sister of the deceased Huliraj, respectively. The deceased died in a motor vehicle accident on 22.04.2017. The claimants filed a claim petition before the Motor Accident Claims Tribunal at Raichur in MVC No. 500/2017, seeking compensation of Rs. 54,50,000/-. The Tribunal awarded a total compensation of Rs. 45,64,000/-. Aggrieved by the inadequacy of the award, the claimants preferred this appeal under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement. The High Court heard the learned counsel for the appellants and the learned counsel for the respondent No. 2/insurance company. The Court noted that the Tribunal had assessed the income of the deceased at Rs. 12,000/- per month, but did not add any amount towards future prospects. The Court held that following the decision in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, 40% future prospects should be added to the income of the deceased, as the deceased was self-employed and aged 22 years. The Court also held that the appropriate multiplier for the age of the deceased is 18, as per Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, and not 17 as applied by the Tribunal. The Court recalculated the loss of dependency as Rs. 12,000/- + 40% = Rs. 16,800/- per month, minus 50% towards personal expenses = Rs. 8,400/- per month, multiplied by 12 months and by multiplier 18, resulting in Rs. 18,14,400/-. The Court also awarded Rs. 15,000/- towards loss of estate, Rs. 15,000/- towards funeral expenses, and Rs. 40,000/- towards loss of consortium to each of the three claimants, totaling Rs. 1,20,000/-. The total compensation was enhanced to Rs. 19,64,400/- with interest at 6% per annum from the date of petition till realization. The appeal was allowed in part.
Headnote
A) Motor Accident Claims - Compensation for Death - Loss of Dependency - Future Prospects - The claimants, being the mother, father, and sister of the deceased, sought enhancement of compensation awarded by the Tribunal for the death of the deceased in a motor vehicle accident. The Court held that the Tribunal erred in not adding future prospects to the income of the deceased and in applying an incorrect multiplier. The Court enhanced the compensation by applying a multiplier of 18 and adding 40% future prospects, following the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680. (Paras 3-5) B) Motor Accident Claims - Compensation for Death - Multiplier - The Court held that the appropriate multiplier for the age of the deceased (22 years) is 18, as per the Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121. The Tribunal had erroneously applied a multiplier of 17. (Para 5) C) Motor Accident Claims - Compensation for Death - Future Prospects - The Court held that 40% future prospects should be added to the income of the deceased, as the deceased was self-employed and aged 22 years, following the decision in Pranay Sethi. (Para 5)
Issue of Consideration
Whether the compensation awarded by the Tribunal for the death of the deceased in a motor vehicle accident is just and proper, and whether the claimants are entitled to enhancement.
Final Decision
Appeal allowed in part. Compensation enhanced to Rs. 19,64,400/- with interest at 6% per annum from the date of petition till realization. The judgment and award dated 07.01.2019 passed by the Tribunal in MVC No. 500/2017 is modified accordingly.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation for death
- Loss of dependency
- Future prospects
- Multiplier method
