Case Note & Summary
The present appeal arises from a judgment and award dated 31.08.2017 passed by the Motor Accident Claims Tribunal (Auxiliary), Palanpur, Banaskantha District in MACP No.26 of 2017. The appellants, who are the original claimants (widow, children, and mother of the deceased), sought enhancement of compensation awarded for the death of Dilipbhai Galababhai Parmar in a motor vehicle accident that occurred on 14.01.2017. The deceased was riding a motorcycle when a jeep driven rashly and negligently by opponent no.1 collided with him, causing fatal injuries. The Tribunal partly allowed the claim petition, awarding Rs.6,60,000/- with interest at 9% per annum. The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, contending that the Tribunal erred in assessing the deceased's income at only Rs.5,000/- per month, whereas the minimum wage for a labourer was Rs.8,000/- per month. They also argued that the Tribunal awarded meagre amounts under other heads and failed to grant loss of consortium to each claimant. The High Court, after hearing learned advocates Mr. K.K. Thakkar for the appellants and Mr. R.P. Raval for the insurance company, held that the Tribunal's assessment of income was without any basis and that in the absence of proof of income, the minimum wages should be taken as the notional income. The court applied a monthly income of Rs.8,000/-, added 40% towards future prospects (as the deceased was 40 years old), applied a multiplier of 15, and deducted 1/4th towards personal expenses. The court also awarded Rs.40,000/- to each of the five claimants towards loss of consortium, following the principles in Magma General Insurance Co. Ltd. v. Nanu Ram. The total compensation was recalculated at Rs.13,08,000/-, with interest at 9% per annum from the date of petition till realization. The insurance company was directed to deposit the enhanced amount within eight weeks.
Headnote
A) Motor Accident Claims - Assessment of Income - Minimum Wages - Deceased was a labourer; Tribunal assessed income at Rs.5,000/- per month without any basis - Held that in absence of proof of income, minimum wages of Rs.8,000/- per month as per Minimum Wages Act should be taken as notional income (Para 5). B) Motor Accident Claims - Future Prospects - Self-Employed - Deceased aged 40 years - Held that 40% addition towards future prospects is warranted as per principles laid down in National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680 (Para 6). C) Motor Accident Claims - Loss of Consortium - Multiple Claimants - Tribunal awarded only Rs.40,000/- towards loss of consortium to the widow - Held that each of the five claimants is entitled to Rs.40,000/- towards loss of consortium, following Magma General Insurance Co. Ltd. v. Nanu Ram (2018) 18 SCC 130 (Para 7). D) Motor Accident Claims - Just Compensation - Multiplier - Deceased aged 40 years - Held that multiplier of 15 is applicable as per Sarla Verma v. Delhi Transport Corporation (2009) 6 SCC 121 (Para 6).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the deceased at Rs.5,000/- per month and in awarding inadequate compensation under other heads, particularly loss of consortium.
Final Decision
The appeal is allowed. The judgment and award dated 31.08.2017 passed by the Motor Accident Claims Tribunal (Auxiliary), Palanpur, Banaskantha District in MACP No.26 of 2017 is modified. The appellants are entitled to total compensation of Rs.13,08,000/- with interest at 9% per annum from the date of petition till realization. The respondent no.2 - Insurance Company is directed to deposit the enhanced amount within eight weeks.
Law Points
- Assessment of income of deceased based on minimum wages
- future prospects for self-employed
- loss of consortium to each claimant
- just and fair compensation under Motor Vehicles Act
