Case Note & Summary
The present appeal arises from a judgment and award dated 14.12.2009 passed by the Motor Accident Claims Tribunal (Aux), Patan in MACP No.5400 of 2002 (Old No.219 of 1995). The claimants, being the legal heirs of deceased Haribhai Panchal, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation for his death in a motor vehicle accident that occurred on 26.02.1995 at around 6:00 hours. The deceased, along with his brother, was traveling on a motorcycle from Varahi to Radhanpur when the motorcycle broke down. They parked it on the left side of the road and were cleaning the spark plug when a tanker bearing registration No.GQY-5013, driven by the driver of opponent No.1 in a rash and negligent manner from the wrong side at excessive speed, dashed against the deceased, causing grievous injuries leading to his death. The Tribunal partly allowed the claim petition and awarded Rs.1,92,158/- with interest at 7.5% per annum from the date of filing till realization. The appellants, being the claimants, filed the present appeal seeking enhancement of compensation. The main issues before the High Court were whether the Tribunal erred in deducting 1/3rd towards personal expenses instead of 50% as per settled law for a bachelor, and whether the compensation was just and proper. The appellants argued that the Tribunal wrongly deducted 1/3rd towards personal expenses and failed to add future prospects. The respondent-Insurance Company supported the Tribunal's award. The High Court, after considering the submissions and evidence, held that the deceased was a bachelor aged 35 years, and as per Sarla Verma v. Delhi Transport Corporation, the deduction towards personal expenses should be 50% and not 1/3rd. The Court also held that 40% addition towards future prospects was warranted as per National Insurance Co. Ltd. v. Pranay Sethi. The Court recalculated the compensation: monthly income was taken as Rs.3,000/- (as per the Tribunal's finding), added 40% future prospects (Rs.1,200/-), making it Rs.4,200/- per month. Deducting 50% towards personal expenses, the monthly loss of dependency was Rs.2,100/-, annual loss Rs.25,200/-. Applying multiplier of 16, the total loss of dependency was Rs.4,03,200/-. Adding Rs.15,000/- for loss of estate, Rs.15,000/- for funeral expenses, and Rs.40,000/- for loss of consortium (Rs.40,000/- to the widow), the total compensation was Rs.4,73,200/-. The Court allowed the appeal, set aside the Tribunal's award, and directed the Insurance Company to pay the enhanced compensation of Rs.4,73,200/- with interest at 7.5% per annum from the date of filing of the claim petition till realization, with proportionate costs.
Headnote
A) Motor Accident Claims - Compensation - Personal Expenses Deduction - For a bachelor, deduction towards personal expenses should be 50% and not 1/3rd as per Sarla Verma v. Delhi Transport Corporation - The Tribunal's deduction of 1/3rd was erroneous and required correction (Paras 5-6). B) Motor Accident Claims - Compensation - Multiplier - Age of deceased (35 years) warrants multiplier of 16 as per Sarla Verma - Tribunal correctly applied multiplier of 16 (Para 6). C) Motor Accident Claims - Compensation - Future Prospects - Deceased was 35 years old, hence 40% addition towards future prospects is warranted as per National Insurance Co. Ltd. v. Pranay Sethi - Tribunal failed to add future prospects (Para 6). D) Motor Accident Claims - Compensation - Conventional Heads - Under Section 166 of the Motor Vehicles Act, 1988 - Claimants entitled to Rs.15,000 towards loss of estate, Rs.15,000 towards funeral expenses, and Rs.40,000 towards loss of consortium (Para 6).
Issue of Consideration
Whether the Tribunal erred in deducting 1/3rd towards personal expenses of the deceased instead of 50% as per the settled law for a bachelor, and whether the compensation awarded was just and proper.
Final Decision
The appeal is allowed. The impugned judgment and award dated 14.12.2009 passed by the Motor Accident Claims Tribunal (Aux), Patan in MACP No.5400 of 2002 is set aside. The respondent No.2-Insurance Company is directed to deposit the enhanced compensation of Rs.4,73,200/- with interest at 7.5% per annum from the date of filing of the claim petition till realization, with proportionate costs, within eight weeks.
Law Points
- Motor Accident Claims
- Compensation Calculation
- Personal Expenses Deduction
- Multiplier
- Future Prospects
- Sarla Verma Guidelines
