Case Note & Summary
The appeal was filed by the claimants (wife and children of the deceased Buddappa) under Section 173(1) of the Motor Vehicles Act, 1988, against the judgment and award dated 18.07.2013 passed by the Motor Accident Claims Tribunal-X, Hunagund in MVC No.346/2012, seeking enhancement of compensation. The deceased Buddappa, aged 60 years and an agriculturist, died in a motor vehicle accident on 02.02.2012. The Tribunal awarded a total compensation of Rs.3,42,000 with interest at 6% per annum. The claimants contended that the Tribunal erred in assessing the notional income at Rs.4,500 per month and in applying a multiplier of 9, and that the compensation under conventional heads was inadequate. The High Court, after hearing both sides, held that the notional income should be Rs.6,000 per month as per the guidelines for the year 2012. Applying a multiplier of 9 and deducting 1/3rd towards personal expenses, the loss of dependency was calculated as Rs.4,32,000. Additionally, Rs.40,000 each was awarded to the four claimants towards loss of consortium (total Rs.1,60,000), Rs.15,000 towards loss of estate, and Rs.15,000 towards funeral expenses. The total compensation was enhanced to Rs.6,22,000, with interest at 6% per annum from the date of petition till realization. The appeal was allowed in part.
Headnote
A) Motor Vehicles Act - Compensation - Notional Income - Deceased was a 60-year-old agriculturist earning Rs.6,000 per month - Tribunal assessed notional income at Rs.4,500 per month - Held that in the absence of proof of income, notional income of Rs.6,000 per month is appropriate as per guidelines for the year 2012 (Paras 5-6). B) Motor Vehicles Act - Compensation - Deduction for Personal Expenses - Deceased was married and had four dependents - Held that 1/3rd of income is to be deducted towards personal expenses as per Sarla Verma v. DTC (Paras 7-8). C) Motor Vehicles Act - Compensation - Multiplier - Deceased was aged 60 years - Held that multiplier of 9 is applicable as per Sarla Verma v. DTC (Para 9). D) Motor Vehicles Act - Compensation - Loss of Consortium - Claimants are wife and children - Held that each claimant is entitled to Rs.40,000 towards loss of consortium as per Magma General Insurance Co. Ltd. v. Nanu Ram (Para 10). E) Motor Vehicles Act - Compensation - Loss of Estate and Funeral Expenses - Held that Rs.15,000 is awarded towards loss of estate and Rs.15,000 towards funeral expenses as per Pranay Sethi (Para 11).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper and whether the appellants are entitled to enhancement of compensation.
Final Decision
Appeal allowed in part. Compensation enhanced from Rs.3,42,000 to Rs.6,22,000 with interest at 6% per annum from the date of petition till realization. Respondent-Insurance Company directed to deposit the enhanced amount within six weeks.
Law Points
- Notional income assessment for self-employed persons
- Deduction for personal expenses for married deceased
- Multiplier selection based on age of deceased
- Compensation for loss of consortium
- Compensation for loss of estate and funeral expenses
