Case Note & Summary
This is an appeal by the claimants (widow and children of deceased Bhagwandas) seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No.482/1997. The deceased died in a motor vehicle accident on 31.7.1996 when his Maruti car collided head-on with a Matador near village Sundara on Rajnandgaon-Nagpur road. He succumbed to injuries on 3.8.1996. The claimants filed a petition under Section 166 of the Motor Vehicles Act, 1988. The Tribunal awarded total compensation of Rs.2,77,200, including no fault liability. The High Court found that the Tribunal erred in applying a multiplier of 12 instead of 14 as per the deceased's age of 42 years. Following the principles in Sarla Verma v. DTC and Rajesh v. Rajbir Singh, the High Court recalculated compensation: loss of dependency at Rs.3,36,000 (Rs.2,000 per month after 1/3rd deduction, multiplied by 12 and by multiplier 14), loss of consortium Rs.1,00,000, funeral expenses Rs.25,000, and loss of estate Rs.10,000, totaling Rs.4,71,000. The appeal was partly allowed, enhancing compensation by Rs.1,93,800 with interest at 6% per annum from the date of petition till realization. The insurance company was directed to pay the enhanced amount within six weeks.
Headnote
A) Motor Accident Claims - Compensation - Multiplier - Age of Deceased - The Tribunal applied multiplier of 12 for deceased aged 42 years, whereas as per Sarla Verma v. DTC, (2009) 6 SCC 121, the correct multiplier for age 41-45 is 14, and for age 46-50 is 13. The deceased was 42 years, so multiplier of 14 should be applied. However, the High Court noted that the Tribunal's use of multiplier 12 was erroneous and applied multiplier 14. (Paras 5-6) B) Motor Accident Claims - Loss of Dependency - Computation - The Tribunal assessed monthly income at Rs.3,000, deducted 1/3rd for personal expenses, applied multiplier 12, and added Rs.2,000 for loss of consortium and Rs.2,000 for funeral expenses. The High Court corrected multiplier to 14, and also enhanced loss of consortium to Rs.1,00,000 and funeral expenses to Rs.25,000 as per Rajesh v. Rajbir Singh, (2013) 9 SCC 54. (Paras 5-7) C) Motor Accident Claims - Enhancement of Compensation - The High Court recalculated compensation: loss of dependency (Rs.2,000 x 12 x 14 = Rs.3,36,000), loss of consortium Rs.1,00,000, funeral expenses Rs.25,000, loss of estate Rs.10,000, total Rs.4,71,000. The Tribunal had awarded Rs.2,77,200. Enhanced amount of Rs.1,93,800 with interest at 6% per annum from date of petition. (Paras 7-8)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in applying a multiplier of 12 instead of 16 for computing loss of dependency, and whether the compensation awarded was just and proper.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.2,77,200 to Rs.4,71,000. Enhanced amount of Rs.1,93,800 with interest at 6% per annum from date of petition till realization. Respondent No.4 (Oriental Insurance Company) to pay enhanced amount within six weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation
- Multiplier
- Age of Deceased
- Dependency
- Loss of Consortium
- Funeral Expenses
