Case Note & Summary
The present appeal arises from a motor accident claim petition filed by the heirs of deceased Veljibhai Mithabhai Baraiya, who died in a vehicular accident on 05.05.2000. The deceased was travelling in a jeep when a truck driven rashly and negligently collided with it, causing fatal injuries. The claimants, being 8 legal representatives, sought compensation of Rs.8,00,000/-. The Motor Accident Claims Tribunal (Aux), Fast Track Court No.1, Bhavnagar, partly allowed the claim and awarded Rs.2,84,200/- with 7.5% interest per annum. Aggrieved by the inadequacy of compensation, the claimants filed the present appeal. The main legal issues were the correct deduction for personal expenses (1/5th instead of 1/3rd given 8 dependents), the appropriate multiplier (13 based on deceased's age of 50), and entitlement to future prospects (10% for self-employed). The appellants argued that the Tribunal erred in deducting 1/3rd and not granting future prospects. The court, relying on Sarla Verma and Pranay Sethi, held that deduction should be 1/5th, multiplier of 13 is correct, and 10% future prospects should be added. The court recalculated the compensation: monthly income Rs.3,000, future prospects 10% (Rs.300), total Rs.3,300, annual Rs.39,600, deduct 1/5th (Rs.7,920), net Rs.31,680, multiplier 13 gives Rs.4,11,840, plus conventional heads Rs.70,000 (loss of consortium Rs.40,000, loss of estate Rs.15,000, funeral expenses Rs.15,000), total Rs.4,81,840. The court allowed the appeal, enhancing compensation to Rs.4,81,840 with 7.5% interest from the date of petition.
Headnote
A) Motor Accident Claims - Computation of Compensation - Deduction for Personal Expenses - Where the deceased had 8 dependents, deduction of 1/5th towards personal expenses is appropriate as per Sarla Verma guidelines, not 1/3rd - Held that the Tribunal erred in deducting 1/3rd and the same is modified to 1/5th (Paras 4-5). B) Motor Accident Claims - Multiplier - Selection of Multiplier - Age of deceased being 50 years, multiplier of 13 is applicable as per Sarla Verma - Held that the Tribunal correctly applied multiplier of 13 (Para 5). C) Motor Accident Claims - Future Prospects - Addition for Self-Employed - For self-employed persons aged 50-60 years, 10% addition towards future prospects is permissible as per National Insurance Co. Ltd. v. Pranay Sethi - Held that the Tribunal erred in not granting future prospects and 10% is added (Para 5).
Issue of Consideration
Whether the Tribunal erred in deducting 1/3rd instead of 1/5th towards personal expenses of the deceased who had 8 dependents, and whether the compensation awarded was just and proper.
Final Decision
Appeal allowed. The impugned judgment and award is modified. The appellants are entitled to total compensation of Rs.4,81,840/- with interest at 7.5% per annum from the date of filing of the claim petition till realization. The respondents are directed to deposit the enhanced amount within 8 weeks.
Law Points
- Deduction for personal expenses in motor accident claims depends on number of dependents
- multiplier selection based on age of deceased
- future prospects addition for self-employed persons
