Case Note & Summary
The appeal arises from a judgment and award dated 03.05.2010 passed by the Motor Accident Claims Tribunal, Nagpur in M.A.C.P. No.980/2006. The appellant, National Insurance Co. Ltd., challenged the award of Rs.2,75,000 as compensation to the respondents, who are the parents of the deceased Sanchit, a 17-year-old student. The accident occurred on 30.08.2006 when the deceased was riding a motorcycle and a luxury bus owned by respondent No.3 and insured by the appellant collided with him, causing fatal head injuries. The Tribunal held the bus driver solely negligent and awarded compensation based on a notional income of Rs.10,000 per month, applying a multiplier of 18 and deducting 1/3rd for personal expenses. The insurance company appealed, arguing that the notional income was excessive and that the deceased was contributively negligent. The High Court found that the Tribunal's assessment of income was speculative as there was no evidence of the deceased's future earnings. Relying on the Second Schedule of the Motor Vehicles Act, 1988, the court fixed the notional income at Rs.3,000 per month, applied a multiplier of 18, and deducted 50% for personal expenses, resulting in a loss of dependency of Rs.3,24,000. Adding Rs.5,000 for funeral expenses and Rs.10,000 for loss of estate, the total compensation was reduced to Rs.3,39,000. The court upheld the finding of no contributory negligence. The appeal was partly allowed, modifying the award accordingly, with interest at 7.5% per annum from the date of petition till realization.
Headnote
A) Motor Accident Claims - Assessment of Compensation - Notional Income of Deceased Student - The Tribunal assessed notional income of a 17-year-old student at Rs.10,000 per month based on future prospects as a Class I Officer, which was held to be speculative and without evidence. The High Court reduced the notional income to Rs.3,000 per month, applying the multiplier of 18 as per Schedule II of the Motor Vehicles Act, 1988, and deducting 50% for personal expenses, resulting in a total compensation of Rs.3,24,000 plus Rs.5,000 for funeral expenses and Rs.10,000 for loss of estate, with interest at 7.5% per annum. (Paras 5-8) B) Motor Accident Claims - Contributory Negligence - The Tribunal found no contributory negligence on the part of the deceased motorcyclist, holding the bus driver solely negligent. The High Court upheld this finding, noting that the bus driver was charged with rash and negligent driving and the bus was on the wrong side of the road. (Para 4) C) Motor Accident Claims - Liability of Insurer - The appellant insurance company was held jointly and severally liable with the owner of the bus to pay compensation, subject to the reduction in quantum. (Para 9)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in assessing the notional income of the deceased student at Rs.10,000 per month and in not considering contributory negligence of the deceased?
Final Decision
Appeal partly allowed. The award of Rs.2,75,000 is modified to Rs.3,39,000. The appellant insurance company is jointly and severally liable with respondent No.3 to pay the amount with interest at 7.5% per annum from the date of petition till realization.
Law Points
- Notional income of a deceased student
- multiplier for minor
- deduction for personal expenses
- contributory negligence
- joint and several liability of insurer and owner
