Case Note & Summary
The appeal was filed by the National Insurance Co. Ltd. against the judgment and order dated 11/11/2005 of the Motor Accident Claims Tribunal, Wardha, in Claim Petition No. 79/1998, whereby the Tribunal awarded compensation of Rs.79,500/- to the respondents (claimants) for the death of a 6-year-old child, Shailesh, in a motor vehicle accident. The accident occurred on 14/04/1995 when the deceased was standing by the side of the road and was hit by a truck bearing registration MP23B6244, driven rashly and negligently by respondent no.5 (driver) and owned by respondent no.6. The claimants, parents and siblings of the deceased, sought compensation of Rs.1,00,000/-. The insurance company contested the claim, but the Tribunal held them jointly and severally liable along with the owner and driver. In appeal, the insurance company argued that the compensation was excessive as there was no evidence of the child's income. The High Court noted that for a child of 6 years, in the absence of evidence, notional income should be taken as Rs.15,000/- per annum as per the Second Schedule of the Motor Vehicles Act. Applying a multiplier of 15 and deducting 1/3rd for personal expenses, the loss of dependency would be Rs.1,50,000/-. Adding Rs.5,000/- for funeral expenses, the total compensation would be Rs.1,55,000/-. However, since the claimants did not file any cross-appeal or cross-objections, the High Court declined to enhance the award and dismissed the appeal, upholding the Tribunal's award of Rs.79,500/-.
Headnote
A) Motor Accident Claims - Compensation for Minor Child - Notional Income - The Tribunal awarded Rs.79,500/- for death of a 6-year-old child, but the High Court held that in absence of evidence of income, notional income of Rs.15,000/- per annum should be taken, applying multiplier of 15 and deducting 1/3rd for personal expenses, resulting in Rs.1,50,000/- as loss of dependency, plus Rs.5,000/- for funeral expenses, total Rs.1,55,000/-. However, since the claimants did not cross-appeal, the award was reduced to Rs.79,500/- as per the Tribunal's order. (Paras 4-5)
Issue of Consideration
Whether the compensation awarded by the Tribunal for the death of a 6-year-old child is excessive and requires reduction.
Final Decision
The appeal is dismissed. The judgment and order of the MACT, Wardha dated 11/11/2005 in Claim Petition No. 79/1998 is confirmed. No order as to costs.
Law Points
- Compensation for death of minor child
- notional income
- multiplier method
- Motor Vehicles Act
- 1988
- Section 166
