Bombay High Court Enhances Compensation in Motor Accident Claim for Permanent Disability — Multiplier Applied at 18 Based on Age of Injured Victim, Notional Income Assessed at Rs. 4,000 per Month. The Court corrected the multiplier from 17 to 18 as per Sarla Verma v. DTC, (2009) 6 SCC 121, and enhanced compensation for loss of amenities, pain and suffering, and future medical expenses.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellant, Mahavir Sampat Keskar, aged 24, was involved in a motor accident on 17th January 2008 while riding a motorcycle. He sustained grievous injuries resulting in permanent disability. He filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Pandharpur, seeking compensation. The Tribunal awarded a total compensation of Rs. 1,84,500 with interest at 6% per annum. Dissatisfied with the quantum, Keskar appealed to the Bombay High Court for enhancement. The High Court examined the issues of multiplier, notional income, loss of amenities, pain and suffering, and future medical expenses. It held that the Tribunal erred in applying multiplier 17 instead of 18 as per Sarla Verma v. DTC, (2009) 6 SCC 121. The notional income was enhanced from Rs. 3,000 to Rs. 4,000 per month. The compensation for loss of amenities was increased from Rs. 10,000 to Rs. 25,000, for pain and suffering from Rs. 15,000 to Rs. 30,000, and for future medical expenses from Rs. 5,000 to Rs. 10,000. The total compensation was enhanced to Rs. 2,64,000 with interest at 6% per annum from the date of petition till realization. The appeal was partly allowed.

Headnote

A) Motor Accident Claims - Compensation Enhancement - Multiplier Determination - Section 166 Motor Vehicles Act, 1988 - The Tribunal applied multiplier of 17 based on age of claimant (24 years) but as per Sarla Verma v. DTC, (2009) 6 SCC 121, the correct multiplier for age 24 is 18. The High Court corrected this and applied multiplier 18. (Paras 10-12)

B) Motor Accident Claims - Notional Income Assessment - Permanent Disability - Section 166 Motor Vehicles Act, 1988 - The Tribunal assessed notional income at Rs. 3,000 per month for an agricultural labourer/driver aged 24. The High Court enhanced it to Rs. 4,000 per month considering the claimant's occupation and the year of accident (2008). (Paras 13-14)

C) Motor Accident Claims - Loss of Amenities and Pain & Suffering - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded Rs. 10,000 for loss of amenities and Rs. 15,000 for pain and suffering. The High Court enhanced these to Rs. 25,000 and Rs. 30,000 respectively, considering the nature of injuries and permanent disability. (Paras 15-16)

D) Motor Accident Claims - Future Medical Expenses - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded Rs. 5,000 for future medical expenses. The High Court enhanced it to Rs. 10,000 considering the need for further treatment. (Para 17)

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Issue of Consideration

Whether the Motor Accident Claims Tribunal erred in assessing compensation for permanent disability by applying a multiplier of 17 instead of 18, and in not awarding adequate compensation for loss of amenities, pain and suffering, and future medical expenses.

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Final Decision

The appeal is partly allowed. The compensation is enhanced from Rs. 1,84,500 to Rs. 2,64,000. The enhanced amount shall carry interest at 6% per annum from the date of petition till realization. The respondent insurance companies are directed to pay the enhanced compensation within eight weeks.

Law Points

  • Motor Accident Claims
  • Compensation Enhancement
  • Multiplier Determination
  • Notional Income Assessment
  • Permanent Disability
  • Contributory Negligence
  • Section 166 Motor Vehicles Act
  • 1988
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Case Details

2017 LawText (BOM) (06) 50

First Appeal No. 493 of 2013

2017-06-09

G.S. Patel, J.

Mr DW Bhosale for Appellant, Mr Ketan V Joshi for Respondent No. 2, Mrs Sucheta D Ghaisas i/b SS Jinsiwale for Respondent No. 4

Mahavir Sampat Keskar

Suresh Krishnaji Deshpande, Divisional Manager, United India Insurance Co. Ltd., Vitthal Dagadu Lokare, Divisional Manager, Oriental Insurance Co. Ltd. (West)

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Nature of Litigation

Appeal against order of Motor Accident Claims Tribunal seeking enhancement of compensation awarded for injuries sustained in a motor accident.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

The appellant was dissatisfied with the quantum of compensation awarded by the Tribunal for the injuries and permanent disability suffered in the accident.

Previous Decisions

The Motor Accident Claims Tribunal, Pandharpur, by judgment dated 29th June 2011, awarded compensation of Rs. 1,84,500 with interest at 6% per annum.

Issues

Whether the Tribunal erred in applying multiplier 17 instead of 18? Whether the notional income assessed at Rs. 3,000 per month is inadequate? Whether the compensation for loss of amenities, pain and suffering, and future medical expenses is inadequate?

Submissions/Arguments

The appellant argued that the multiplier should be 18 as per Sarla Verma v. DTC, (2009) 6 SCC 121, and not 17. The appellant contended that the notional income should be at least Rs. 4,000 per month considering his age and occupation. The appellant submitted that the compensation for loss of amenities, pain and suffering, and future medical expenses is too low and should be enhanced.

Ratio Decidendi

The multiplier for computing compensation in motor accident claims must be determined as per the age of the claimant as per Sarla Verma v. DTC, (2009) 6 SCC 121. For a claimant aged 24, the correct multiplier is 18. Notional income should be assessed reasonably considering the claimant's occupation and the year of accident. Compensation for loss of amenities, pain and suffering, and future medical expenses should be adequate and not nominal.

Judgment Excerpts

The Tribunal has applied multiplier of 17. As per the decision of the Supreme Court in Sarla Verma v. DTC, (2009) 6 SCC 121, the multiplier for the age group of 21 to 25 years is 18. Hence, the multiplier should be 18. Considering the age of the appellant and the year of accident, the notional income is assessed at Rs. 4,000 per month. The compensation for loss of amenities is enhanced to Rs. 25,000, for pain and suffering to Rs. 30,000, and for future medical expenses to Rs. 10,000.

Procedural History

The appellant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Pandharpur. The Tribunal awarded compensation of Rs. 1,84,500 on 29th June 2011. Aggrieved, the appellant filed First Appeal No. 493 of 2013 before the Bombay High Court, which was heard and disposed of on 9th June 2017.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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