Case Note & Summary
The appeal was filed by the original claimants, the mother and minor brothers of the deceased Premsagar, who died in a motor vehicle accident on 12/11/2001. The deceased, aged 17, was traveling on a Kinetic Honda scooter with his father when a luxury bus coming from the opposite side dashed into them, causing both deaths. The claimants sought compensation of Rs. 4,00,000, alleging that the deceased earned Rs. 1,200 per month working at a Xerox centre. The Motor Accident Claims Tribunal, Akola, in M.A.C.P. No. 23/2002, awarded Rs. 1,05,000 with interest at 6% per annum. The claimants appealed for enhancement. The High Court found that the Tribunal's assessment of income at Rs. 1,200 per month was based on uncorroborated oral evidence and was not reliable. Instead, the Court applied a notional income of Rs. 15,000 per annum as per the Second Schedule of the Motor Vehicles Act, 1988, for a non-earning person. Applying a multiplier of 15 and deducting 1/3rd for personal expenses, the loss of dependency was calculated as Rs. 1,50,000. Adding Rs. 5,000 for funeral expenses, the total compensation was enhanced to Rs. 1,55,000. The Court directed the insurance company to pay the enhanced amount with interest at 6% per annum from the date of petition. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation for Death of Minor - Notional Income - The Tribunal erred in assessing the deceased's income at Rs. 1200 per month based on uncorroborated oral evidence; the High Court applied a notional income of Rs. 15,000 per annum as per Second Schedule to the Motor Vehicles Act, 1988, for a non-earning person, and applied multiplier of 15, deducting 1/3rd for personal expenses, resulting in enhanced compensation. (Paras 6-10) B) Motor Accident Claims - Multiplier - Dependency - For a deceased minor aged 17 years, the appropriate multiplier is 15 as per the Second Schedule; deduction of 1/3rd towards personal expenses is standard; loss of dependency calculated as (Rs. 15,000 - 1/3rd) x 15 = Rs. 1,50,000, plus Rs. 5,000 for funeral expenses, total Rs. 1,55,000. (Paras 8-10) C) Motor Accident Claims - Interest - The enhanced compensation amount shall carry interest at the rate of 6% per annum from the date of petition till realization, as per the Tribunal's rate. (Para 10)
Issue of Consideration
Whether the compensation awarded by the Tribunal for the death of a 17-year-old boy was just and proper, and what should be the correct assessment of notional income and multiplier.
Final Decision
The appeal is partly allowed. The compensation is enhanced from Rs. 1,05,000 to Rs. 1,55,000. The respondent no.2 insurance company shall pay the enhanced amount with interest at 6% per annum from the date of petition till realization. The award of the Tribunal is modified accordingly.
Law Points
- Notional income assessment for deceased minor
- multiplier method for compensation
- deduction for personal expenses
- loss of dependency calculation
- Motor Vehicles Act
- 1988 Sections 166 and 168
