Case Note & Summary
The present appeal arises from a judgment and award dated 20.04.2019 passed by the Motor Accident Claims Tribunal (Aux), Bhavnagar in MACP No.13 of 2014. The appellants, who are the parents of the deceased Ashokbhai Umedbhai Bakutara, filed the claim petition seeking compensation for the death of their son in a motor vehicle accident that occurred on 22.12.2013. The deceased, aged 22 years and a bachelor, was riding a motorcycle when a truck driven rashly and negligently by opponent no.1 collided with him, causing fatal injuries. An FIR was registered under Sections 279, 337, 338 IPC and Sections 177, 184, 134 of the Motor Vehicles Act. The Tribunal partly allowed the claim petition and awarded Rs.7,35,000/- with 9% interest. The appellants sought enhancement, contending that the notional income of Rs.3,000/- per month was too low, future prospects were not added, and consortium amounts were inadequate. The High Court held that the notional income of Rs.3,000/- was not challenged by the insurance company and thus not interfered with. However, following the principles in National Insurance Co. Ltd. v. Pranay Sethi, 40% future prospects were added, and the multiplier of 18 was upheld. The Court also enhanced the loss of consortium to Rs.40,000/- each for the parents, and awarded Rs.15,000/- for loss of estate and Rs.15,000/- for funeral expenses. The total compensation was recalculated as Rs.9,07,200/-. The appeal was partly allowed, and the insurance company was directed to deposit the enhanced amount with 9% interest.
Headnote
A) Motor Accident Claims - Computation of Compensation - Notional Income - Deceased was a 22-year-old bachelor, no proof of income - Tribunal assessed notional income at Rs.3,000/- per month - Held that in absence of evidence, notional income should be assessed as per minimum wage or guidelines, but no interference as notional income was not challenged (Paras 1-5). B) Motor Accident Claims - Future Prospects - Deceased was self-employed - Tribunal did not grant future prospects - Held that as per Pranay Sethi, 40% future prospects should be added for self-employed persons below 40 years (Para 6). C) Motor Accident Claims - Multiplier - Deceased aged 22 years - Tribunal applied multiplier of 18 - Held that as per Sarla Verma, multiplier of 18 is correct (Para 6). D) Motor Accident Claims - Loss of Consortium - Appellants are parents - Tribunal awarded Rs.40,000/- each - Held that as per Magma General Insurance, each parent is entitled to Rs.40,000/- for loss of filial consortium, and also Rs.15,000/- for loss of estate and Rs.15,000/- for funeral expenses (Para 7). E) Motor Accident Claims - Interest Rate - Tribunal awarded 9% per annum - Held that 9% is reasonable and not interfered with (Para 8).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal is just and proper, and whether the appellants are entitled to enhancement of compensation.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.7,35,000/- to Rs.9,07,200/-. Insurance company directed to deposit the enhanced amount with 9% interest from the date of claim petition till realization.
Law Points
- Motor Accident Claims
- Computation of Compensation
- Notional Income
- Future Prospects
- Multiplier
- Loss of Consortium
- Interest Rate
