Case Note & Summary
The appeal was filed by the claimants, being the father, mother, widow, and children of Sheikh Ashiq, who died in a vehicular accident on 11.7.2004. The accident occurred when a truck driven rashly and negligently hit the Luna driven by the deceased from behind, causing his death on the spot. The claimants filed a petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Nagpur, which awarded compensation of Rs. 3,84,000/- with interest at 6% per annum. The appellants challenged the award on the grounds that the Tribunal erred in deducting 1/3rd towards personal expenses of the deceased, who was a bachelor, and in not granting future prospects. The High Court, after considering the submissions, held that as per settled law, for a bachelor, the deduction towards personal expenses should be 50% and not 1/3rd. Further, the Court held that 50% of the income should be added towards future prospects as the deceased was aged 35 years and self-employed. The multiplier of 13 applied by the Tribunal was also held to be erroneous; the correct multiplier for age 35 is 16. The Court recalculated the compensation, enhancing it to Rs. 6,21,000/- with interest at 6% per annum from the date of petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Deduction towards personal expenses - Deceased was a bachelor - Tribunal deducted 1/3rd towards personal expenses - Held that for a bachelor, deduction should be 50% as per settled law - Appeal allowed and compensation enhanced (Paras 7-9). B) Motor Accident Claims - Compensation - Future Prospects - Tribunal did not grant future prospects - Held that as per law, 50% of the income should be added towards future prospects for a self-employed person aged 35 years - Compensation enhanced accordingly (Paras 10-11). C) Motor Accident Claims - Compensation - Multiplier - Tribunal applied multiplier of 13 - Deceased was aged 35 years - Held that multiplier of 16 is applicable as per Sarla Verma case - Compensation recalculated (Paras 12-13).
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in deducting 1/3rd towards personal expenses of the deceased who was a bachelor and in not granting future prospects?
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 3,84,000/- to Rs. 6,21,000/- with interest at 6% per annum from the date of petition till realization. Respondent No.2-Insurance Company directed to deposit the enhanced amount within eight weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Compensation for death of bachelor
- Deduction towards personal expenses
- Multiplier
- Future prospects
- Contributory negligence
- Rash and negligent driving
