Case Note & Summary
The present appeal arises from a motor accident claim. The original claimants, legal heirs of the deceased Narendrasinh Lakhubha Waghela, filed a claim petition before the Motor Accident Claims Tribunal (Auxiliary) at Viramgam, Ahmedabad, seeking compensation for the death of the deceased in a vehicular accident that occurred on 29.06.1998. The Tribunal partly allowed the claim and awarded Rs.2,45,400/- with interest at 7.5% per annum. The claimants appealed, seeking enhancement on the ground that the income was assessed too low, future prospects were not considered, the multiplier was wrongly applied, and the amounts under conventional heads were inadequate. The High Court noted that the accident, manner of occurrence, age, and dependency were not in dispute. The income of the deceased was not proved, so the Court applied the minimum wages for a skilled worker as on the date of accident, which was Rs.1,800/- per month. Adding 40% towards future prospects (as per Pranay Sethi), the monthly income became Rs.2,520/-. Deducting 1/2 for personal expenses (as the deceased was a bachelor), the monthly dependency was Rs.1,260/-, and annual dependency Rs.15,120/-. Applying multiplier 18 (as per Sarla Verma for age 17), the loss of dependency was computed at Rs.2,72,160/-. Adding Rs.40,000/- for loss of consortium, Rs.15,000/- for funeral expenses, and Rs.15,000/- for loss of estate, the total compensation was Rs.3,42,160/-. The Court allowed the appeal, enhancing the compensation from Rs.2,45,400/- to Rs.3,42,160/-, with interest at 7.5% per annum from the date of filing of the claim petition till realization. The insurance company was directed to deposit the enhanced amount within eight weeks.
Headnote
A) Motor Accident Compensation - Assessment of Income - Minimum Wages - Where the income of the deceased is not proved, the Tribunal ought to consider the minimum wages prevalent at the time of accident as notified by the Government - In the present case, the accident occurred on 29.06.1998 and the minimum wages for a skilled worker were Rs.1,800/- per month - Held that the income of the deceased should be assessed at Rs.1,800/- per month (Paras 5-6). B) Motor Accident Compensation - Future Prospects - Deceased aged 17 years - As per the decision of the Supreme Court in National Insurance Company Ltd. v. Pranay Sethi, 40% addition towards future prospects is to be made for self-employed persons below 40 years of age - Held that 40% future prospects should be added (Para 6). C) Motor Accident Compensation - Deduction for Personal Expenses - Deceased was a bachelor - As per the decision of the Supreme Court in Sarla Verma v. Delhi Transport Corporation, 50% is to be deducted towards personal expenses for a bachelor - Held that 1/2 should be deducted instead of 1/3 (Para 6). D) Motor Accident Compensation - Multiplier - Deceased aged 17 years - As per Sarla Verma, the multiplier for age 15-25 is 18 - Held that multiplier of 18 should be applied (Para 6). E) Motor Accident Compensation - Conventional Heads - Loss of Consortium, Funeral Expenses, Loss of Estate - As per Pranay Sethi, the amounts are Rs.40,000/- for loss of consortium, Rs.15,000/- for funeral expenses, and Rs.15,000/- for loss of estate - Held that these amounts should be awarded (Para 6).
Issue of Consideration
Whether the compensation awarded by the Tribunal was just and proper, and whether the income of the deceased should be assessed on the basis of minimum wages with addition of future prospects.
Final Decision
The appeal is allowed. The impugned judgment and award dated 13.08.2008 is modified. The compensation is enhanced from Rs.2,45,400/- to Rs.3,42,160/-. The insurance company is directed to deposit the enhanced amount of Rs.96,760/- with interest at 7.5% per annum from the date of filing of the claim petition till realization within eight weeks.
Law Points
- Motor accident compensation
- minimum wages
- future prospects
- multiplier
- loss of consortium
- funeral expenses
- loss of estate
