Case Note & Summary
The appellant, Bhagwanbhai Dhanjibhai Kalsariya, filed a first appeal under Section 173 of the Motor Vehicles Act, 1988, against the judgment and award dated 25.02.2015 passed by the Motor Accident Claims Tribunal (Auxi.), Bhavnagar in MACP No. 931 of 2002. The claimant was involved in a motor accident on 18.11.2002 when his motorcycle was hit by a jeep driven rashly and negligently by the opponent. He sustained serious injuries resulting in permanent disability. The Tribunal awarded compensation of Rs. 2,50,000 with interest at 9% per annum. The claimant appealed seeking enhancement. The High Court found that the Tribunal had applied an incorrect multiplier of 14 instead of 15 as per Sarla Verma, failed to add future prospects as per Pranay Sethi, and assessed income at a low figure of Rs. 3,000 per month without considering the claimant's occupation as a diamond polisher. The High Court reassessed the notional income at Rs. 6,500 per month, added 40% future prospects, applied multiplier 15, and awarded Rs. 1,63,800 for pain, shock and suffering, Rs. 25,000 for medical expenses, Rs. 10,000 for transportation, Rs. 10,000 for special diet, and Rs. 10,000 for attendant charges. The total compensation was enhanced to Rs. 7,18,800 with interest at 7.5% per annum from the date of claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Compensation - Permanent Disability - Multiplier - The Tribunal applied multiplier of 14 for a 44-year-old claimant, but as per Sarla Verma v. DTC, the correct multiplier is 15 for age 41-45. The High Court corrected the multiplier to 15. (Paras 5-6) B) Motor Accident Compensation - Future Prospects - Notional Income - The Tribunal failed to add future prospects. Following Pranay Sethi, 40% addition is warranted for self-employed persons aged 40-50. The High Court added 40% future prospects to the notional income of Rs. 6,500 per month. (Paras 7-8) C) Motor Accident Compensation - Notional Income - The Tribunal assessed income at Rs. 3,000 per month without evidence. The High Court, considering the claimant's diamond polishing work and the year 2002, assessed notional income at Rs. 6,500 per month. (Para 9)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in assessing compensation for permanent disability by applying an incorrect multiplier and failing to consider future prospects and notional income.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 2,50,000 to Rs. 7,18,800 with interest at 7.5% per annum from date of claim petition till realization. The Insurance Company to deposit the enhanced amount within eight weeks.
Law Points
- Motor Accident Compensation
- Permanent Disability
- Multiplier
- Future Prospects
- Notional Income
- Section 173 Motor Vehicles Act
- 1988
