Case Note & Summary
The appeal was filed by the claimants, legal representatives of deceased K.R. Rajakumara, challenging the judgment and award dated 22.08.2013 passed by the Motor Accidents Claims Tribunal (MACT), Bangalore, in MVC No.2982/2010. The Tribunal had awarded compensation of Rs.86,244/- with interest at 6% per annum to the first appellant, the widow of the deceased. The claimants sought enhancement of compensation. The deceased was aged 51 years at the time of accident and was earning Rs.3,000/- per month. The Tribunal adopted a multiplier of 13. The High Court, after hearing the counsel for the appellants and the insurance company, held that as per the Second Schedule to the Motor Vehicles Act, 1988, the appropriate multiplier for a person aged 51 years is 14, not 13. The court recalculated the loss of dependency: monthly income Rs.3,000/-, less 1/3rd towards personal expenses (Rs.1,000/-), leaving Rs.2,000/- per month, annual loss Rs.24,000/-, multiplied by 14 gives Rs.3,36,000/-. Adding conventional heads of Rs.9,500/- (funeral expenses, loss of consortium, loss of estate), total compensation was fixed at Rs.3,45,500/-. The court directed the insurance company to pay the enhanced amount of Rs.2,59,256/- (Rs.3,45,500/- minus Rs.86,244/-) with interest at 6% per annum from the date of petition till deposit. The appeal was allowed in part.
Headnote
A) Motor Vehicles Act - Compensation - Multiplier - Deceased aged 51 years - Tribunal adopted multiplier 13 instead of 14 as per Second Schedule - Held that multiplier should be 14 as per the Schedule - Appeal allowed, compensation enhanced (Paras 2-3). B) Motor Vehicles Act - Loss of Dependency - Calculation - Monthly income of deceased Rs.3,000/- - 1/3rd deducted towards personal expenses - Multiplier 14 applied - Loss of dependency computed as Rs.3,36,000/- - Held that claimants entitled to enhanced compensation (Para 3). C) Motor Vehicles Act - Interest Rate - Tribunal awarded 6% per annum - No challenge by claimants - Held that interest rate of 6% is fair and reasonable (Para 3).
Issue of Consideration
Whether the Tribunal erred in adopting multiplier of 13 instead of 14 for a deceased aged 51 years, and whether the compensation awarded is just and proper.
Final Decision
Appeal allowed in part. Compensation enhanced from Rs.86,244/- to Rs.3,45,500/-. Insurance company directed to pay enhanced amount of Rs.2,59,256/- with interest at 6% per annum from date of petition till deposit.
Law Points
- Multiplier selection under Second Schedule to Motor Vehicles Act
- 1988
- Loss of dependency calculation
- Interest rate on compensation
