Case Note & Summary
The present appeal arises from a motor accident claim. On 23.07.2012, Sachin Kumar, a 25-year-old police constable, died in a collision caused by a rashly driven trolla. His dependents—widow, minor daughter, mother, and father—filed a claim under Section 166 of the Motor Vehicles Act, 1988, seeking ₹40,00,000 compensation. The Motor Accident Claims Tribunal, Rohtak, awarded ₹7,70,400 with 9% interest, applying a multiplier of 18, adding 50% future prospects, and deducting 1/4th for personal expenses. The High Court of Punjab and Haryana, in appeal by the insurance company, reduced the compensation to ₹5,64,000 with 7.5% interest, applying a multiplier of 11, omitting future prospects, and deducting 1/3rd. The Supreme Court allowed the appeal, restoring the Tribunal's award. The Court held that for a 25-year-old deceased, the correct multiplier is 18 as per Sarla Verma v. Delhi Transport Corporation, and 50% future prospects must be added as per National Insurance Company Ltd. v. Pranay Sethi. The deduction for personal expenses should be 1/4th since the deceased had four dependents. The interest rate of 9% per annum was restored as just and fair. The Supreme Court set aside the High Court's order and directed the insurance company to pay the enhanced compensation with interest.
Headnote
A) Motor Accident Compensation - Computation of Compensation - Multiplier - Future Prospects - The deceased, aged 25 years, was a police constable. The Tribunal applied multiplier of 18 and added 50% future prospects. The High Court reduced multiplier to 11 and omitted future prospects. The Supreme Court restored the Tribunal's award, holding that for a deceased aged 25, multiplier of 18 is correct as per Sarla Verma, and 50% future prospects must be added as per Pranay Sethi. (Paras 2-10) B) Motor Accident Compensation - Deduction for Personal Expenses - The deceased was married and had a minor daughter. The Tribunal deducted 1/4th towards personal expenses. The High Court deducted 1/3rd. The Supreme Court restored 1/4th deduction, as the deceased had four dependents. (Paras 8-10) C) Motor Accident Compensation - Interest Rate - The Tribunal awarded 9% interest per annum. The High Court reduced it to 7.5%. The Supreme Court restored 9% interest, holding that the rate is just and fair. (Para 10)
Issue of Consideration
Whether the High Court was justified in reducing the compensation awarded by the Tribunal by applying a multiplier of 11 instead of 18 and not granting future prospects?
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order, and restored the Tribunal's award of Rs. 7,70,400 with 9% interest per annum from the date of filing of the claim petition till realization.
Law Points
- Motor Accident Compensation
- Future Prospects
- Multiplier
- Deduction for Personal Expenses
- Interest Rate
