Bombay High Court Allows Appeal of Injured Housewife in Motor Accident Claim - Enhances Compensation from Rs. 30,000 to Rs. 1,00,000. Notional Income of Housewife Assessed at Rs. 3,000 per Month for Computing Loss of Earning Capacity Due to 5% Permanent Disability Under Motor Vehicles Act, 1988.

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

The appellant, Khatijabi, a 59-year-old housewife, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for injuries sustained in a road accident on 06/08/2001. While traveling in an auto rickshaw, it collided with a truck (MH31/W5950), causing her compound fractures of the middle phalanges of the 3rd and 4th fingers, fracture of the right clavicle, and fracture of the lower 1/4th of the ulna. She was hospitalized for a few days and incurred medical expenses of Rs. 10,000/-. She claimed 5% permanent disability affecting her longevity. The Motor Accident Claims Tribunal, Akola, in MACP No.53/2002, awarded Rs. 30,000/- as compensation, which the appellant challenged as inadequate. The High Court noted that the Tribunal failed to assess any notional income for the appellant, a housewife, and did not adequately compensate for permanent disability. The Court held that a housewife's contribution to the family and society must be recognized, and her notional income should be considered. Applying the multiplier of 9 (as per the Second Schedule for age 55-60), the Court assessed notional income at Rs. 3,000/- per month, leading to Rs. 54,000/- for loss of earning capacity (5% disability). Additionally, the Court enhanced compensation for pain and suffering to Rs. 25,000/-, medical expenses to Rs. 10,000/-, special diet and conveyance to Rs. 5,000/-, and loss of amenities to Rs. 6,000/-, totaling Rs. 1,00,000/-. The appeal was allowed, and the enhanced amount was directed to be paid with interest at 7.5% per annum from the date of petition.

Headnote

A) Motor Accident Claims - Compensation for Housewife - Permanent Disability - The appellant, a housewife, sustained compound fractures and 5% permanent disability in a road accident. The Tribunal awarded Rs. 15,000/- for pain and suffering, Rs. 5,000/- for medical expenses, Rs. 5,000/- for special diet and conveyance, and Rs. 5,000/- for loss of amenities, totaling Rs. 30,000/-. The High Court held that the compensation was inadequate and enhanced it to Rs. 1,00,000/- considering the nature of injuries, permanent disability, and notional income of Rs. 3,000/- per month. (Paras 1-10)

B) Motor Accident Claims - Notional Income - Housewife - The Tribunal did not assess any notional income for the appellant, a housewife. The High Court held that even a housewife contributes to the family and society, and her notional income should be considered for loss of earning capacity due to permanent disability. Applying the multiplier method, the Court assessed notional income at Rs. 3,000/- per month and awarded Rs. 54,000/- for loss of earning capacity. (Paras 7-9)

C) Motor Accident Claims - Multiplier - Age of Claimant - The appellant was 59 years old at the time of the accident. The High Court applied the multiplier of 9 as per the Second Schedule of the Motor Vehicles Act, 1988, for the age group of 55-60 years. (Para 9)

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal for injuries sustained by a housewife was just and proper, particularly regarding the assessment of permanent disability and notional income.

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Final Decision

The appeal is allowed. The judgment and award dated 10/04/2008 passed by MACT, Akola in MACP No.53/2002 is modified. The appellant is entitled to total compensation of Rs. 1,00,000/- with interest at 7.5% per annum from the date of petition till realization. The respondent No.3 (The New India Assurance Co. Ltd.) is directed to pay the enhanced amount within six weeks.

Law Points

  • Compensation for housewife
  • permanent disability
  • notional income
  • Motor Vehicles Act
  • 1988
  • Section 166
  • Section 168
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Case Details

2017 LawText (BOM) (06) 206

First Appeal No.725 of 2008

2017-06-20

Smt. Dr Shalini Phansalkarjoshi, J.

Shri C. A. Joshi for appellant, Ms Anita Singh Mategaonkar for respondent No.3, Shri Sachin Zoting for respondent No.6

Khatijabi w/o Haji Iqbal

Shahbaz Khan s/o Wahab Khan, Narayankumar s/o Shrikisan Dayal, The New India Assurance Co. Ltd., Sanjay s/o Deolal Zadokar, Prakash Pahelajram Ahuja, National Insurance Co. Ltd.

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Nature of Litigation

Appeal against inadequate compensation awarded by Motor Accident Claims Tribunal for injuries sustained in a road accident.

Remedy Sought

Enhancement of compensation from Rs. 30,000 to Rs. 1,50,000.

Filing Reason

Dissatisfaction with the meagre amount of compensation awarded by the Tribunal.

Previous Decisions

The Motor Accident Claims Tribunal, Akola, in MACP No.53/2002, awarded Rs. 30,000 as compensation on 10/04/2008.

Issues

Whether the compensation awarded by the Tribunal was just and proper? Whether the Tribunal erred in not assessing notional income for the appellant, a housewife? Whether the compensation for permanent disability and loss of amenities was adequate?

Submissions/Arguments

Appellant argued that the Tribunal failed to consider her permanent disability of 5% and did not award any compensation for loss of earning capacity, despite her being a housewife whose contribution to the family should be recognized. Respondent No.3 (insurer of truck) disputed the claim, but did not contest the appeal on merits. Respondent No.6 (insurer of auto rickshaw) initially admitted insurance but later receded.

Ratio Decidendi

A housewife's notional income must be considered for computing loss of earning capacity due to permanent disability. The multiplier method as per the Second Schedule of the Motor Vehicles Act, 1988 applies. Compensation for pain and suffering, medical expenses, special diet, conveyance, and loss of amenities should be just and reasonable.

Judgment Excerpts

The appellant in the case is a house wife. According to her, due to said injuries she has sufferred 5% permanent disability and it has effect on the longevity of her life. The Tribunal has not assessed any notional income of the appellant. Even a house wife contributes to the family and society, and her notional income should be considered for loss of earning capacity due to permanent disability.

Procedural History

The appellant filed MACP No.53/2002 before MACT, Akola, which awarded Rs. 30,000 on 10/04/2008. Being dissatisfied, she filed First Appeal No.725 of 2008 before the Bombay High Court, Nagpur Bench, which was heard and decided on 20/06/2017.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166, Section 168
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