Case Note & Summary
The appellant, Rajesh Raghavji Aayar, filed a first appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 16.09.2011 passed by the Motor Accident Claims Tribunal (Auxiliary) in MACP No.1604/1999. The claimant was injured in a motor vehicle accident on 18.07.1998 when a tanker driven rashly and negligently by respondent no.1 collided with his Maruti Car. He sustained severe injuries and claimed compensation of Rs.18,00,000. The Tribunal partly allowed the claim and awarded Rs.1,81,800 with 9% interest. Aggrieved by the quantum, the claimant appealed. The High Court heard learned counsel for both sides. The appellant argued that the Tribunal erred in assessing his income at Rs.3,000 per month despite his claim of earning Rs.8,000 from transportation business, and failed to add prospective income. The respondent insurance company supported the award. The Court noted that the claimant was 28 years old and self-employed. Relying on the Constitution Bench decision in National Insurance Co. Ltd. v. Pranay Sethi, the Court held that 40% should be added towards future prospects for self-employed persons below 40 years. The income was reassessed at Rs.4,200 per month. Applying the multiplier of 18 and 30% permanent disability, the loss of income due to disability was calculated at Rs.2,72,160. Adding Rs.1,00,000 for pain, shock and suffering, the total compensation was enhanced to Rs.3,72,160. The award was modified accordingly, with interest at 9% per annum from the date of claim petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation for Personal Injury - Assessment of Income - The Tribunal assessed the income of the claimant, a self-employed person in transportation business, at Rs.3,000 per month without considering prospective income - The High Court held that for a self-employed person aged 28 years, 40% should be added towards future prospects as per the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi - The income was reassessed at Rs.4,200 per month after adding 40% (Paras 8-10). B) Motor Accident Claims - Compensation for Personal Injury - Disability Assessment - The claimant suffered 30% permanent disability as per medical evidence - The High Court applied the multiplier of 18 (age 28) and calculated loss of income due to disability at Rs.2,72,160 - The Tribunal had awarded Rs.1,81,800 which was enhanced to Rs.3,72,160 with interest at 9% per annum (Paras 8-11).
Issue of Consideration
Whether the Tribunal erred in assessing the income of the claimant at Rs.3,000 per month and in not adding prospective income for a self-employed person aged 28 years, and whether the compensation awarded was just and proper.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The claimant is entitled to total compensation of Rs.3,72,160 with interest at 9% per annum from the date of claim petition till realization. The insurance company is directed to deposit the enhanced amount within eight weeks.
Law Points
- Motor Accident Claims
- Compensation for Personal Injury
- Prospective Income for Self-Employed
- Disability Assessment
- Multiplier Application
- Interest Rate
