Case Note & Summary
The New India Assurance Co. Ltd. appealed against the judgment and award dated 23/12/2016 passed by the Motor Accident Claims Tribunal, Amravati, in Claim Petition No. 96/2011. The claim petition was filed under Section 166 of the Motor Vehicles Act, 1988 by the parents (respondent nos.1 and 2) of the deceased, who died in a road accident on 06/01/2011 on Amravati-Badnera road. The deceased was a pillion rider on a Hero Honda Splendor motorcycle when a truck (registration no. MP06GA1082) driven rashly and negligently by respondent no.3, owned by respondent no.4, and insured with the appellant, hit him, causing instantaneous death. The Tribunal held the accident solely due to the truck driver's negligence and awarded compensation of Rs.13,84,000 with interest at 7.5% per annum from the date of petition. The Tribunal notionally computed the deceased's income at Rs.8,000 per month based on his educational qualification of having passed 12th standard, as he was a student without actual income. The appellant insurance company challenged the quantum of compensation, arguing that the notional income was excessive. The High Court, after hearing counsel for both sides, found that the Tribunal's approach was reasonable and in accordance with law. The Court noted that the deceased was a young student with good educational background, and the notional income of Rs.8,000 per month was not excessive. The Court also upheld the multiplier of 18 and deduction of 1/3rd towards personal expenses. Consequently, the appeal was dismissed, and the award was confirmed. The Court directed that the amount deposited by the appellant be transmitted to the Tribunal for disbursement to the claimants.
Headnote
A) Motor Accident Claims - Notional Income - Deceased Student - The Tribunal notionally computed income of deceased at Rs.8,000 per month based on his educational qualification of having passed 12th standard, in absence of actual income proof - Held that such notional income is reasonable and not excessive (Paras 6-8). B) Motor Accident Claims - Rash and Negligent Driving - Sole Cause - The Tribunal found that the accident was solely due to rash and negligent driving of the offending truck - Held that finding of negligence is correct and not perverse (Para 5). C) Motor Accident Claims - Compensation - Multiplier and Deductions - The Tribunal applied multiplier of 18 and deducted 1/3rd towards personal expenses - Held that these are in accordance with settled law (Paras 7-8).
Issue of Consideration
Whether the Motor Accident Claims Tribunal was justified in notionally computing the income of the deceased at Rs.8,000 per month based on his educational qualifications, and whether the compensation awarded is excessive.
Final Decision
The High Court dismissed the appeal and confirmed the judgment and award dated 23/12/2016 passed by the Motor Accident Claims Tribunal, Amravati. The amount deposited by the appellant was directed to be transmitted to the Tribunal for disbursement to the claimants.
Law Points
- Notional income can be computed based on educational qualifications of deceased
- Section 166 Motor Vehicles Act
- 1988
- Rash and negligent driving
- Vicarious liability of owner and insurer
