Case Note & Summary
The appellant, Vincentina Paulina D'Souza, filed a claim petition before the Motor Accident Claims Tribunal (MACT) at Goa seeking compensation for the death of her 19-year-old son, Casiano Robert D'Souza, who died in a motor vehicle accident. The deceased was an apprentice steward employed with Indian Resort Hotels Limited at Fort Aguada Beach Resort, Sinquerim-Goa, and was undergoing training with a stipend of Rs.1,500/- per month. The Tribunal partly allowed the petition and awarded compensation of Rs.1,76,300/-, which included Rs.1,27,500/- for loss of dependency. The claimant appealed, contending that the compensation was inadequate as the Tribunal failed to consider the deceased's future prospects, applied an incorrect multiplier of 13 instead of 18, and deducted 1/3rd for personal expenses instead of 50%. The High Court of Bombay at Goa, presided over by Justice Nutan D. Sardessai, analyzed the evidence and held that the deceased had good future prospects as he would have been absorbed into permanent service with a minimum monthly salary of Rs.5,500/- upon completion of training. The Court applied the multiplier of 18 as per the Sarla Verma case, deducted 50% for personal expenses, and added 50% towards future prospects. The Court also enhanced the rate of interest from 6% to 7.5% per annum. The total compensation was recalculated as Rs.2,97,000/- for loss of dependency, plus Rs.15,000/- for loss of estate and Rs.15,000/- for funeral expenses, totaling Rs.3,27,000/-. The appeal was partly allowed, and the respondents were directed to pay the enhanced amount with interest.
Headnote
A) Motor Accident Claims - Compensation - Future Prospects - Deceased was a 19-year-old apprentice steward with good future prospects - Tribunal erred in not considering that on completion of training he would have been absorbed with minimum monthly salary of Rs.5,500/- - Held that future prospects must be considered even for apprentices (Paras 2-5). B) Motor Accident Claims - Multiplier - Applicable multiplier for age of deceased - Deceased aged 19 years - Tribunal applied multiplier of 13 instead of 18 as per Sarla Verma v. DTC - Held that multiplier of 18 is appropriate (Para 6). C) Motor Accident Claims - Deduction for Personal Expenses - Deceased was a bachelor - Tribunal deducted 1/3rd instead of 50% - Held that 50% deduction is correct as per settled law (Para 7). D) Motor Accident Claims - Interest - Rate of interest on compensation - Tribunal awarded 6% per annum - Held that 7.5% per annum is fair and reasonable (Para 8).
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in awarding inadequate compensation by not considering the future prospects of the deceased apprentice steward and by applying incorrect multiplier and deduction.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.1,76,300/- to Rs.3,27,000/-. Respondents directed to pay enhanced amount with interest at 7.5% per annum from date of petition till realization.
Law Points
- Compensation in fatal motor accident claims
- future prospects of deceased apprentice
- multiplier method
- deduction for personal expenses
- interest on enhanced compensation
