Case Note & Summary
The appeal was filed by the insurance company challenging the judgment and award dated 15.07.2016 passed by the Principal Motor Accident Claims Tribunal, Bengaluru in MVC No.4340/2014, whereby compensation of Rs.19,57,950/- with interest at 9% per annum was awarded to the claimants, who are the parents of the deceased. The deceased was a 25-year-old bachelor working as a Software Engineer earning Rs.25,000/- per month. The accident occurred on 20.06.2014 due to the rash and negligent driving of a car insured with the appellant. The Tribunal assessed the notional income at Rs.25,000/- per month, added 50% towards future prospects, applied multiplier 14 based on the age of the mother (56 years), and deducted 1/3rd towards personal expenses, arriving at the total compensation. The insurance company contended that the deduction towards personal expenses should be 50% as per the law for a bachelor, and the multiplier should be 18 based on the age of the deceased. The High Court agreed, holding that for a bachelor, 50% deduction is warranted, and the multiplier should be based on the deceased's age (25 years), i.e., 18. The addition towards future prospects was reduced from 50% to 40% as per settled law. The court recalculated the loss of dependency as Rs.25,000 + 40% = Rs.35,000, minus 50% = Rs.17,500, multiplied by 12 and by 18 = Rs.37,80,000. Adding conventional heads of Rs.70,000 (loss of estate Rs.15,000, funeral expenses Rs.15,000, loss of consortium Rs.40,000), total compensation was fixed at Rs.38,50,000. However, since the claimants had only sought Rs.13,05,300 in the claim petition, the court restricted the award to that amount, modifying the Tribunal's award accordingly. The appeal was partly allowed, reducing the compensation to Rs.13,05,300 with 9% interest.
Headnote
A) Motor Accident Claims - Compensation for Death of Bachelor - Deduction towards Personal Expenses - In case of death of a bachelor, deduction of 50% towards personal expenses is warranted as per settled law - The Tribunal erred in deducting only 1/3rd towards personal expenses - Held that the deduction should be 50% (Paras 8-10). B) Motor Accident Claims - Multiplier - Age of Deceased - The multiplier should be based on the age of the deceased, not the age of the claimants - The Tribunal applied multiplier of 14 based on age of mother, but deceased was aged 25 years, hence multiplier of 18 is appropriate (Para 11). C) Motor Accident Claims - Future Prospects - Addition of 40% towards future prospects is permissible for self-employed or fixed salary persons aged below 40 years - The Tribunal added 50% which is excessive - Held that 40% addition is correct (Para 12). D) Motor Accident Claims - Contributory Negligence - No evidence of contributory negligence by the deceased - The Tribunal correctly held that the accident was solely due to rash and negligent driving of the driver of the offending vehicle (Para 13).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper, particularly regarding the deduction towards personal expenses and the multiplier applied.
Final Decision
Appeal partly allowed. Compensation reduced from Rs.19,57,950/- to Rs.13,05,300/- with interest at 9% per annum from date of petition till realisation. The insurance company is directed to deposit the modified compensation within six weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation for death of bachelor
- Deduction towards personal expenses
- Multiplier method
- Future prospects
- Contributory negligence
