Case Note & Summary
The present appeal arises from a judgment and award dated 15.05.2024 passed by the Motor Accident Claims Tribunal (Main), Chhotaudepur, in MACP No.232/2021. The appellants, Jalaluddin Bachubhai Belim and another, are the original claimants and legal heirs of the deceased Nasimbanu Bachubhai Belim, who died in a motor vehicle accident on 05.12.2020. The deceased was a street food vendor selling 'Dalpulav' at Golagamdi Cross roads and allegedly earned Rs.15,000 per month. The claimants filed a claim petition seeking compensation of Rs.10,00,000. The Tribunal awarded Rs.4,81,000 with interest at 7.5% per annum, assessing the deceased's notional income at Rs.5,000 per month, applying a multiplier of 15, deducting 1/3rd towards personal expenses, and awarding Rs.15,000 for loss of estate and Rs.15,000 for funeral expenses. The claimants appealed only on the ground of quantum, challenging the low notional income, non-grant of future prospects, and inadequate conventional heads. The Insurance Company opposed the appeal. The High Court, after hearing the parties, held that the notional income of Rs.5,000 was too low and enhanced it to Rs.10,000 per month considering the deceased's occupation and prevailing minimum wages. The Court also added 25% towards future prospects as the deceased was aged between 40-50 years, applied a multiplier of 15, and deducted 1/3rd towards personal expenses. The conventional heads were enhanced: Rs.18,000 for loss of estate, Rs.18,000 for funeral expenses, and Rs.18,000 for loss of consortium to each claimant (two claimants). The total compensation was recalculated as Rs.10,80,000, and the Insurance Company was directed to pay the enhanced amount of Rs.5,99,000 with interest at 7.5% per annum from the date of petition till realization. The appeal was allowed accordingly.
Headnote
A) Motor Accident Compensation - Notional Income - Assessment for Self-Employed Person - Where the deceased was a street food vendor without documentary proof of income, the Tribunal's assessment of notional income at Rs.5,000 per month was inadequate - Considering the nature of work and prevailing minimum wages, the High Court enhanced the notional income to Rs.10,000 per month - Held that notional income must be realistic and just (Paras 7-8). B) Motor Accident Compensation - Future Prospects - Addition for Self-Employed Person - For a deceased aged 40-50 years, an addition of 25% towards future prospects is warranted as per the settled law - The Tribunal erred in not granting any addition for future prospects - Held that future prospects must be added to the notional income (Para 8). C) Motor Accident Compensation - Conventional Heads - Enhancement - The Tribunal awarded Rs.15,000 towards loss of estate and Rs.15,000 towards funeral expenses, which are below the prescribed amounts - The High Court enhanced these to Rs.18,000 and Rs.18,000 respectively, and also awarded Rs.18,000 for loss of consortium to each claimant - Held that conventional heads must be awarded as per the guidelines (Para 9).
Issue of Consideration
Whether the Tribunal erred in assessing the notional income of the deceased at Rs.5,000 per month and in not awarding future prospects and adequate conventional damages?
Final Decision
The appeal is allowed. The judgment and award of the Tribunal is modified. The total compensation is enhanced from Rs.4,81,000 to Rs.10,80,000. The Insurance Company is directed to deposit the enhanced amount of Rs.5,99,000 with interest at 7.5% per annum from the date of petition till realization within eight weeks.
Law Points
- Notional income assessment for self-employed persons without proof of income
- Future prospects addition for self-employed persons aged 40-50 years
- Conventional heads under Motor Vehicles Act
- 1988
- Enhancement of compensation in appeal limited to quantum
