Case Note & Summary
The appeal arose from a motor accident claim where the deceased, Yitesh Sadana alias Prince, a 19-year-old bachelor, died due to the negligence of a bus driver. The claimants, his widowed mother and minor brother, sought enhancement of compensation awarded by the Motor Accident Claims Tribunal and the Delhi High Court. The Tribunal had awarded Rs. 3,72,620, which the High Court enhanced to Rs. 5,02,620. The Supreme Court considered two main issues: the correct multiplier and the addition of future prospects. The Court held that following the Constitution Bench in Pranay Sethi and the three-Judge Bench in Royal Sundaram, the multiplier must be based on the deceased's age (18) not the mother's age (15). Additionally, 40% of the established income should be added for future prospects as the deceased was self-employed and below 40. After deducting 50% for personal expenses, the loss of dependency was calculated at Rs. 5,92,488. Adding Rs. 70,000 under conventional heads, total compensation was fixed at Rs. 6,62,448. After deducting the High Court's award, the insurance company was directed to pay an additional Rs. 1,60,000 with 7% interest from the claim petition date.
Headnote
A) Motor Accident Compensation - Multiplier - Age of Deceased vs. Dependents - In case of death of a bachelor, the multiplier must be based on the age of the deceased, not the age of the dependents - Following Royal Sundaram Alliance Insurance Company Limited v. Mandala Yadagari Goud and Others, (2019) 5 SCC 554, the Supreme Court held that the age of the deceased is to be taken into account for calculating the multiplier (Paras 10-11). B) Motor Accident Compensation - Future Prospects - Self-Employed Deceased - Addition of 40% for deceased below 40 years - As per National Insurance Company Limited v. Pranay Sethi and Others, (2017) 16 SCC 680, for a self-employed deceased aged 19 years, 40% of the established income must be added towards future prospects (Paras 8-9). C) Motor Accident Compensation - Deduction for Personal Expenses - Bachelor - 50% deduction - For a bachelor deceased, 50% of the gross income is to be deducted towards personal living expenses (Para 9). D) Motor Accident Compensation - Conventional Heads - Loss of Estate, Consortium, Funeral Expenses - As per Pranay Sethi, compensation under conventional heads is Rs. 15,000 for loss of estate, Rs. 40,000 for loss of consortium, and Rs. 15,000 for funeral expenses, with 10% enhancement every three years (Para 11).
Issue of Consideration
Whether the multiplier for computing loss of dependency should be based on the age of the deceased or the age of the dependents, and whether future prospects should be added for a self-employed deceased.
Final Decision
Appeal partly allowed. The third respondent/insurance company is directed to deposit a sum of Rs. 1,60,000 with simple interest at 7% per annum from the date of claim petition till deposit, within two months. The first appellant is permitted to withdraw the amount. No order as to costs.
Law Points
- Motor Accident Compensation
- Multiplier based on age of deceased
- Future prospects for self-employed
- Deduction for personal expenses of bachelor
- Conventional heads compensation
