Case Note & Summary
The case arises from a motor vehicle accident that occurred on 01.10.2012, when a tanker bearing registration No. GJ-5-AT-1596, driven rashly and negligently by respondent No.2, dashed against a motorcycle bearing registration No. GJ-13-HH-6347, resulting in the death of two minor children: Hanifasha Hakasha (the rider) and Shabbirasa Satarasa (the pillion rider). The appellants, being the parents of the deceased, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation. The Motor Accident Claims Tribunal (Aux.), Limbdi, partly allowed the claim petition and awarded Rs.3,12,000 with interest at 9% per annum. The appellants appealed for enhancement. The High Court found that the Tribunal had erred in assessing the income of the deceased and in applying the multiplier. The High Court held that in the absence of proof of income, the notional income of a minor should be taken as Rs.15,000 per annum as per the Second Schedule of the Motor Vehicles Act, 1988. Applying the multiplier of 15 (based on the age of the deceased, 18 years) and deducting 50% for personal expenses, the High Court calculated the loss of dependency as Rs.1,12,500 per deceased. Adding Rs.15,000 for loss of estate and Rs.15,000 for funeral expenses, the total compensation was computed at Rs.2,55,000 per deceased, totaling Rs.5,10,000. However, considering the overall circumstances and the fact that the Tribunal had awarded Rs.3,12,000, the High Court enhanced the compensation to Rs.8,00,000 (Rs.4,00,000 per deceased) with interest at 9% per annum from the date of filing of the claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation Enhancement - Death of Minors - Negligence - The appeal sought enhancement of compensation for the death of two minor children in a motor vehicle accident caused by a tanker driven rashly and negligently. The High Court held that the Tribunal erred in assessing the income of the deceased and in applying the multiplier, and enhanced the compensation from Rs.3,12,000 to Rs.8,00,000 with interest at 9% per annum. (Paras 1-8) B) Motor Accident Claims - Negligence - Contributory Negligence - The Tribunal found the tanker driver solely negligent, and the High Court upheld this finding, noting that the driver of the tanker was solely responsible for the accident. (Paras 2-4) C) Motor Accident Claims - Compensation - Income of Deceased Minors - The High Court held that in the absence of proof of income, the notional income of a minor should be taken as Rs.15,000 per annum as per the Second Schedule of the Motor Vehicles Act, 1988. (Para 6) D) Motor Accident Claims - Compensation - Multiplier - The High Court applied the multiplier of 15 as per the age of the deceased (18 years) and the principles laid down in Sarla Verma v. DTC. (Para 6) E) Motor Accident Claims - Compensation - Future Prospects - The High Court held that no addition for future prospects is warranted in the case of a minor. (Para 6) F) Motor Accident Claims - Compensation - Deduction for Personal Expenses - The High Court held that 50% deduction for personal expenses is applicable for a bachelor. (Para 6)
Issue of Consideration
Whether the compensation awarded by the Tribunal was just and proper, and whether the appellants are entitled to enhancement of compensation.
Final Decision
The appeal is partly allowed. The impugned judgment and award dated 18.10.2019 is modified. The appellants are entitled to total compensation of Rs.8,00,000 (Rs.4,00,000 per deceased) with interest at 9% per annum from the date of filing of the claim petition till realization. The respondent No.3 (Insurance Company) is directed to deposit the enhanced amount within eight weeks.
Law Points
- Motor Accident Claims
- Compensation Enhancement
- Negligence
- Contributory Negligence
- Income of Deceased
- Multiplier
- Future Prospects
- Deduction for Personal Expenses
- Interest Rate
