Case Note & Summary
The appeal was filed by the parents and sister of deceased Yogesh Tekode, who died in a motor vehicle accident on 17th August 2005. The deceased was riding a two-wheeler when it collided head-on with another two-wheeler driven by Hemraj Gaikwad, who also died. The offending vehicle was insured with United India Insurance Co. The Motor Accident Claims Tribunal awarded Rs.1,57,000 as compensation, with 40% each to parents and 20% to sister. The appellants sought enhancement, claiming the deceased was 22 years old and earning Rs.3,000 per month as a labourer. The High Court found the Tribunal's assessment inadequate. It considered the deceased's age and notional income, applied a multiplier of 18 as per Sarla Verma v. DTC, and deducted 1/3rd for personal expenses. The court also allowed Rs.5,000 for funeral expenses and Rs.5,000 for loss of estate. The total compensation was enhanced to Rs.3,70,000, with interest at 7.5% per annum from the date of petition. The insurance company was directed to pay the enhanced amount within six weeks.
Headnote
A) Motor Accident Claims - Compensation Enhancement - Just Compensation - Motor Vehicles Act, 1988, Sections 166, 168 - Appeal against Tribunal award of Rs.1,57,000 for death of 22-year-old bachelor - High Court enhanced compensation to Rs.3,70,000 considering notional income of Rs.15,000 per annum, multiplier of 18, and 1/3rd deduction for personal expenses - Held that Tribunal erred in applying multiplier of 12 and not considering future prospects - Appellants entitled to enhanced compensation with interest at 7.5% per annum from date of petition (Paras 1-10).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, and whether the appellants are entitled to enhancement of compensation.
Final Decision
Appeal allowed. Compensation enhanced from Rs.1,57,000 to Rs.3,70,000. The enhanced amount of Rs.2,13,000 shall carry interest at 7.5% per annum from the date of petition till realization. Respondent no.2 insurance company directed to pay the enhanced amount within six weeks. Appellants entitled to withdraw the amount with accrued interest.
Law Points
- Motor Accident Claims
- Compensation Enhancement
- Just Compensation
- Multiplier Method
- Loss of Dependency
- No Fault Liability
Case Details
2017 LawText (BOM) (12) 112
First Appeal No.307 of 2009
Mr.M.A.Sable for appellants, Mr.M.R.Kalar for respondent no.2
Ramhari s/o Namdeorao Tekode, Sindhubai w/o Ramhari Tekode, Ku.Gitanjali d/o Ramhari Tekode
Smt.Nalini wd/o Homraj Gaikwad, The United India Insurance Co.
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Nature of Litigation
Appeal against award of Motor Accident Claims Tribunal seeking enhancement of compensation for death in motor vehicle accident.
Remedy Sought
Appellants (parents and sister of deceased) sought enhancement of compensation from Rs.1,57,000 to Rs.7,20,000.
Filing Reason
Inadequate compensation awarded by Tribunal for death of 22-year-old bachelor in motor vehicle accident.
Previous Decisions
Motor Accident Claims Tribunal, Amravati awarded Rs.1,57,000 on 29th February 2008 in Claim Petition No.298 of 2005.
Issues
Whether the compensation awarded by the Tribunal was just and proper?
Whether the appellants are entitled to enhancement of compensation?
Submissions/Arguments
Appellants argued that the deceased was 22 years old, earning Rs.3,000 per month as a labourer, and the Tribunal erred in applying multiplier of 12 and not considering future prospects.
Respondent insurance company opposed enhancement, supporting the Tribunal's award.
Ratio Decidendi
In motor accident claims, for a bachelor aged 22, the appropriate multiplier is 18 as per Sarla Verma v. DTC. Notional income of Rs.15,000 per annum is reasonable in absence of proof. Deduction of 1/3rd for personal expenses is proper. Compensation for loss of dependency, funeral expenses, and loss of estate should be awarded.
Judgment Excerpts
This appeal takes exception to Judgment and Award dated 29th February, 2008 passed by Member, Motor Accident Claims Tribunal, Amravati in Claim Petition No.298 of 2005.
Considering the age of the deceased, multiplier of 18 is applicable as per the decision in Sarla Verma v. DTC.
The total compensation is assessed at Rs.3,70,000.
Procedural History
Claim Petition No.298 of 2005 filed before Motor Accident Claims Tribunal, Amravati, which awarded Rs.1,57,000 on 29th February 2008. Appellants filed First Appeal No.307 of 2009 before Bombay High Court, Nagpur Bench, which was heard and decided on 6th December 2017.
Acts & Sections
- Motor Vehicles Act, 1988: Sections 166, 168
