Case Note & Summary
The present appeal arises from a judgment and award dated 20.11.2021 passed by the Motor Accident Claims Tribunal (Aux.), Banaskantha at Deesa in Motor Accident Claim Petition No.3336 of 2009. The appellants, legal heirs of the deceased Ishvarbhai Govindbhai Desai, filed the claim petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation of Rs.10,00,000/- for the death of the deceased in a motor accident that occurred on 05.03.2006. The deceased was riding a motorcycle when a jeep driven rashly and negligently collided with him, causing fatal injuries. The Tribunal awarded Rs.5,34,000/- as compensation. The appellants challenged the award on grounds that the Tribunal erred in assessing the income of the deceased, applied a wrong multiplier of 13 instead of 11, and failed to award loss of consortium to all dependents as per the Supreme Court's decision in Magma General Insurance Company Limited v. Nanu Ram. The respondents opposed the appeal, arguing that the compensation was just and proper. The High Court, after hearing the parties, held that the notional income of Rs.3,000/- per month assessed by the Tribunal was just and proper in the absence of documentary evidence. Regarding the multiplier, the Court noted that as per Sarla Verma v. Delhi Transport Corporation, the correct multiplier for a 55-year-old is 11, but since the appeal was for enhancement, the Court did not interfere with the multiplier of 13 applied by the Tribunal. On the issue of loss of consortium, the Court relied on Magma General Insurance Company Limited v. Nanu Ram and held that each dependent is entitled to Rs.40,000/- towards loss of consortium. Since there were five dependents, the Court awarded Rs.2,00,000/- under this head. The Court also awarded Rs.15,000/- towards loss of estate and Rs.15,000/- towards funeral expenses. The total compensation was enhanced from Rs.5,34,000/- to Rs.7,34,000/-. The Court directed the respondent No.2 - Insurance Company to deposit the enhanced amount with 7.5% interest per annum from the date of petition till realization within eight weeks.
Headnote
A) Motor Accident Claims - Assessment of Income - Deceased was an agriculturist aged 55 years - Tribunal assessed notional income at Rs.3,000/- per month - Held that in absence of documentary evidence, notional income of Rs.3,000/- per month is just and proper (Para 6). B) Motor Accident Claims - Multiplier - Deceased aged 55 years - Tribunal applied multiplier of 13 - Held that as per Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, multiplier of 11 is applicable for age group of 55-60 years - Hence, multiplier of 13 is on higher side but not interfered as appeal is for enhancement (Para 7). C) Motor Accident Claims - Loss of Consortium - Tribunal awarded consortium only to widow - Held that as per Magma General Insurance Company Limited v. Nanu Ram, (2018) 18 SCC 130, each dependent is entitled to Rs.40,000/- towards loss of consortium - Appellants being five dependents entitled to Rs.2,00,000/- under this head (Paras 8-9). D) Motor Accident Claims - Just Compensation - Tribunal awarded Rs.5,34,000/- - High Court enhanced compensation to Rs.7,34,000/- with 7.5% interest per annum from date of petition till realization - Held that enhanced compensation to be paid by respondent No.2 - Insurance Company within eight weeks (Paras 10-11).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased, applying multiplier of 13, and not awarding compensation under the head of loss of consortium to all dependents as per Magma General Insurance Company Limited v. Nanu Ram
Final Decision
Appeal allowed in part. The compensation awarded by the Tribunal is enhanced from Rs.5,34,000/- to Rs.7,34,000/-. The respondent No.2 - Insurance Company is directed to deposit the enhanced amount with 7.5% interest per annum from the date of petition till realization within eight weeks.
Law Points
- Assessment of income of deceased
- application of multiplier
- award of loss of consortium to all dependents
- just and proper compensation under Motor Vehicles Act
