Case Note & Summary
The appellant, Parshuram Sitaram, filed a first appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the judgment and award dated 18.10.2012 passed by the Motor Accident Claims Tribunal (Auxi), Surendranagar in M.A.C.P. No. 424 of 2007. The Tribunal had partly allowed the claim petition and awarded Rs.3,95,000 with 9% interest per annum. The appellant sought enhancement of compensation. The accident occurred on 29.06.2007 when the appellant was driving his rickshaw (GJ-13-V-364) on the correct side of the road. A dumper (GJ-2-X-983) driven by respondent No.2 in a rash and negligent manner on the wrong side at excessive speed dashed against the rickshaw, causing grievous injuries to the appellant and other passengers. The appellant sustained 40% permanent disability as per medical evidence. The Tribunal awarded compensation under various heads but did not award any amount for future loss of income. The High Court found that the Tribunal erred in not considering future loss of income. The appellant was 28 years old at the time of the accident, and his income as a rickshaw driver was assessed notionally at Rs.3,000 per month. Applying a multiplier of 18 as per Sarla Verma v. DTC, the future loss of income was calculated as Rs.3,000 x 12 x 18 x 40% = Rs.2,59,200. The High Court also enhanced compensation for pain, shock and suffering from Rs.15,000 to Rs.25,000, and for medical expenses, special diet, and attendant charges from Rs.10,000 to Rs.15,000. The total compensation was enhanced from Rs.3,95,000 to Rs.6,94,200. The appeal was partly allowed with the enhanced amount payable by the insurance company (respondent No.3) with 9% interest from the date of filing of the claim petition.
Headnote
A) Motor Accident Claims - Compensation for Permanent Disability - Future Loss of Income - The appellant, a rickshaw driver, sustained 40% permanent disability due to a dumper accident. The High Court held that the Tribunal erred in not awarding future loss of income and applied a multiplier of 18 based on the appellant's age (28 years) and a notional income of Rs.3,000 per month, resulting in an enhanced compensation of Rs.2,59,200. (Paras 5-8) B) Motor Accident Claims - Negligence - Rash Driving - The accident occurred when the dumper driver drove on the wrong side at excessive speed and dashed against the rickshaw. The Tribunal and High Court upheld the finding of negligence against the dumper driver, as the FIR and evidence supported the claimant's version. (Paras 2-3) C) Motor Accident Claims - Interest Rate - The High Court maintained the interest rate of 9% per annum from the date of filing of the claim petition till realization, as awarded by the Tribunal. (Para 9)
Issue of Consideration
Whether the compensation awarded by the Tribunal was just and proper, particularly regarding the assessment of permanent disability and future loss of income.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The appellant is entitled to total compensation of Rs.6,94,200 instead of Rs.3,95,000. The enhanced amount of Rs.2,99,200 shall be paid by respondent No.3 (Insurance Company) with interest at 9% per annum from the date of filing of the claim petition till realization. The award is to be deposited within eight weeks.
Law Points
- Motor Accident Claims
- Compensation for Permanent Disability
- Future Loss of Income
- Multiplier Method
- Negligence in Rash Driving
- Interest Rate on Compensation
