Case Note & Summary
The present appeal arises from a judgment and award dated 30.09.2015 passed by the Motor Accident Claims Tribunal (Auxiliary), Surendranagar, in M.A.C.P. No. 279 of 2008, whereby the Tribunal partly allowed the claim petition and awarded a sum of Rs.4,26,500/- with interest at 9% per annum. The appellants, who are the legal heirs of the deceased Yogendrasinh Zala, sought enhancement of compensation. The deceased, aged 27 years, was a truck driver who died in a single-vehicle accident on 10.11.2007 when he lost control of his truck while trying to avoid hitting a cow and collided with a neem tree. The Tribunal found contributory negligence on the part of the deceased and applied a multiplier of 13, deducted 1/3rd towards personal expenses, and did not grant any amount towards future prospects. The High Court held that the accident was solely due to the negligence of the deceased driver and no contributory negligence was involved. Applying the principles from Sarla Verma v. DTC and National Insurance Co. Ltd. v. Pranay Sethi, the Court held that the multiplier should be 15, 40% should be added towards future prospects, and 1/4th should be deducted towards personal expenses. The Court recalculated the compensation as follows: monthly income Rs.3,000/- (notional), plus 40% future prospects = Rs.4,200/-, minus 1/4th deduction = Rs.3,150/-, annual income Rs.37,800/-, multiplied by 15 = Rs.5,67,000/-, plus Rs.70,000/- under conventional heads (loss of estate, loss of consortium, funeral expenses) = Rs.6,37,000/-. The Court allowed the appeal, set aside the Tribunal's award, and directed the insurance company to pay Rs.6,37,000/- with interest at 9% per annum from the date of filing of the claim petition till realization, with proportionate costs.
Headnote
A) Motor Accident Claims - Contributory Negligence - Deceased driver lost control of truck to avoid hitting a cow and collided with a tree - No evidence of negligence of any other vehicle - Held that the accident was solely due to the negligence of the deceased driver himself, and the finding of contributory negligence was not warranted (Paras 3-5). B) Motor Accident Claims - Computation of Compensation - Multiplier - Deceased aged 27 years - As per Sarla Verma v. DTC, multiplier of 15 applicable - Tribunal erroneously applied multiplier of 13 - Held that multiplier of 15 should be applied (Paras 6-7). C) Motor Accident Claims - Computation of Compensation - Future Prospects - Deceased was a truck driver aged 27 years - As per National Insurance Co. Ltd. v. Pranay Sethi, 40% addition towards future prospects is warranted - Tribunal failed to grant any amount - Held that 40% should be added (Paras 8-9). D) Motor Accident Claims - Computation of Compensation - Deduction towards Personal Expenses - Deceased was married and had four dependents - As per Sarla Verma, deduction of 1/4th is appropriate - Tribunal erroneously deducted 1/3rd - Held that 1/4th should be deducted (Paras 10-11). E) Motor Accident Claims - Interest Rate - Tribunal awarded interest at 9% per annum - No challenge by respondents - Held that interest rate of 9% is just and proper (Para 12).
Issue of Consideration
Whether the learned Tribunal erred in assessing the compensation by applying a multiplier of 13 instead of 15, deducting 1/3rd towards personal expenses instead of 1/4th, and not granting any amount towards future prospects, and whether the finding of contributory negligence was correct.
Final Decision
The appeal is allowed. The impugned judgment and award dated 30.09.2015 passed by the Motor Accident Claims Tribunal (Auxiliary), Surendranagar, in M.A.C.P. No. 279 of 2008 is set aside. The respondent No. 2 - Insurance Company is directed to pay Rs.6,37,000/- (Rupees Six Lakhs Thirty Seven Thousand Only) with interest at 9% per annum from the date of filing of the claim petition till realization, along with proportionate costs. The amount already paid, if any, shall be deducted from the enhanced amount.
Law Points
- Contributory negligence
- Multiplier determination
- Future prospects
- Deduction towards personal expenses
- Interest rate
