Case Note & Summary
The appeal arises from a judgment and award dated 4.2.2012 passed by the I Addl. Senior Civil Judge and Addl. MACT, Dharwad in MVC No.512/2008. The claimants, being the mother, wife, and children of the deceased Ulavappa Kattimani @ Bhimannavar, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation for his death in a road accident that occurred on 25.5.2008. The deceased was aged 25 years and was working as a driver earning Rs. 4,500 per month. The Tribunal awarded total compensation of Rs. 3,72,500 with interest at 6% per annum. The claimants appealed seeking enhancement. The High Court found that the Tribunal erred in deducting 1/3rd towards personal expenses instead of 1/2 as the deceased was a bachelor and the claimants were his mother and siblings. The multiplier of 13 applied based on the mother's age was incorrect; the correct multiplier based on the deceased's age of 25 years is 16. The Tribunal failed to add any amount towards future prospects; 40% addition is warranted. The amounts awarded under conventional heads were also inadequate. The High Court recalculated the compensation: monthly income Rs. 4,500, future prospects 40% (Rs. 1,800), total Rs. 6,300; annual income Rs. 75,600; deducting 1/2 towards personal expenses, annual dependency Rs. 37,800; applying multiplier 16, loss of dependency Rs. 6,04,800; adding Rs. 40,000 for loss of consortium to mother, Rs. 15,000 for funeral expenses, Rs. 15,000 for loss of estate, and Rs. 10,000 each for loss of love and affection to the three children (total Rs. 30,000), total compensation Rs. 7,04,800. The appeal was allowed in part, enhancing compensation from Rs. 3,72,500 to Rs. 7,04,800 with interest at 6% per annum from the date of petition till deposit.
Headnote
A) Motor Accident Claims - Compensation - Deduction towards personal expenses - The Tribunal erred in deducting 1/3rd towards personal expenses of the deceased when the deceased was a bachelor and the claimants were his mother and siblings - Held that deduction of 1/2 is appropriate as per settled law (Para 8). B) Motor Accident Claims - Multiplier - The Tribunal applied multiplier of 13 based on the age of the mother, but the correct multiplier is 16 based on the age of the deceased (25 years) as per Sarla Verma v. Delhi Transport Corporation - Held that multiplier should be based on age of deceased (Para 9). C) Motor Accident Claims - Future Prospects - The Tribunal failed to add any amount towards future prospects - Held that 40% addition towards future prospects is warranted as per Pranay Sethi guidelines (Para 10). D) Motor Accident Claims - Loss of Consortium - The Tribunal awarded Rs. 10,000 towards loss of consortium to mother - Held that mother is entitled to Rs. 40,000 towards filial consortium as per Magma General Insurance Co. Ltd. v. Nanu Ram (Para 11). E) Motor Accident Claims - Funeral Expenses - The Tribunal awarded Rs. 5,000 towards funeral expenses - Held that Rs. 15,000 is appropriate as per Pranay Sethi (Para 11). F) Motor Accident Claims - Loss of Estate - The Tribunal awarded Rs. 5,000 towards loss of estate - Held that Rs. 15,000 is appropriate as per Pranay Sethi (Para 11).
Issue of Consideration
Whether the Tribunal was justified in deducting 1/3rd towards personal expenses of the deceased and applying multiplier of 13 instead of 16, and whether the compensation awarded is just and proper.
Final Decision
Appeal allowed in part. The judgment and award dated 4.2.2012 in MVC No.512/2008 is modified. The total compensation is enhanced from Rs. 3,72,500 to Rs. 7,04,800. The enhanced amount shall carry interest at 6% per annum from the date of petition till deposit. Respondent No. 2 (Insurance Company) is directed to deposit the entire compensation amount within six weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation
- Multiplier
- Personal Expenses
- Dependency
- Future Prospects
