Case Note & Summary
The appeal arises from a judgment and award dated 23.03.2020 passed by the Motor Accident Claims Tribunal (Main), Kheda at Nadiad, in MACP No.341/2018, whereby the Tribunal awarded compensation of Rs.6,04,600/- to the claimants, legal heirs of deceased Rameshbhai Babubhai Rathod, who died in a motor vehicle accident on 15.02.2018. The deceased was a pillion rider on an Activa when a Pick-up Van driven rashly and negligently dashed into it from behind. The claimants, being the widow and children, filed a claim petition seeking Rs.10,00,000/- compensation. The Tribunal assessed the deceased's notional income at Rs.6,000 per month, applied multiplier of 16 (deceased aged 40 years), deducted 1/4th towards personal expenses, and awarded Rs.6,04,600/- including conventional heads. The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, challenging only the quantum, not liability or contributory negligence. The appellant argued that the Tribunal erred in taking notional income as Rs.6,000 instead of Rs.8,000 claimed, and that conventional heads were inadequate. The respondent insurance company opposed, stating the award was just. The High Court, after hearing counsel, held that in the absence of income proof, the notional income should be Rs.8,000 per month as per minimum wage guidelines. Recalculating, the Court applied multiplier 16, deducted 1/4th, and arrived at Rs.11,52,000 for loss of dependency. Adding Rs.1,60,000 for loss of consortium (Rs.40,000 each to four claimants), Rs.15,000 for funeral expenses, and Rs.15,000 for loss of estate, total compensation was computed as Rs.13,42,000. The Court allowed the appeal, enhancing compensation from Rs.6,04,600 to Rs.13,42,000 with 9% interest per annum from the date of petition till realization, and directed the insurance company to deposit the enhanced amount within eight weeks.
Headnote
A) Motor Accident Claims - Quantum of Compensation - Notional Income - Deceased was a labourer earning Rs.8,000 per month but no documentary evidence produced - Tribunal assessed notional income at Rs.6,000 per month - Held that in absence of evidence, notional income should be Rs.8,000 per month as per minimum wage guidelines - Appeal allowed, compensation enhanced (Paras 3-6). B) Motor Accident Claims - Conventional Heads - Loss of Consortium - Tribunal awarded Rs.40,000 each to four claimants under loss of consortium - Held that each claimant is entitled to Rs.40,000 as per Pranay Sethi guidelines - No enhancement required (Para 6). C) Motor Accident Claims - Funeral Expenses and Loss of Estate - Tribunal awarded Rs.15,000 and Rs.15,000 respectively - Held that these amounts are in accordance with Pranay Sethi guidelines - No enhancement required (Para 6).
Issue of Consideration
Whether the Tribunal erred in assessing the notional income of the deceased at Rs.6,000 per month and in awarding inadequate compensation under conventional heads?
Final Decision
The appeal is allowed. The judgment and award dated 23.03.2020 passed by the Motor Accident Claims Tribunal (Main), Kheda at Nadiad, in MACP No.341/2018 is modified. The total compensation is enhanced from Rs.6,04,600/- to Rs.13,42,000/-. The respondent No.3 (Insurance Company) is directed to deposit the enhanced amount of Rs.7,37,400/- with 9% interest per annum from the date of petition till realization within eight weeks from the date of receipt of the order. The award is modified accordingly.
Law Points
- Notional income assessment for labourer without proof
- enhancement of conventional heads under Motor Vehicles Act
- 1988
- application of multiplier based on age of deceased
