Bombay High Court Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation Due to Contributory Negligence of Deceased. Claimants' Appeal Dismissed as No Error Found in Tribunal's Assessment of Income and Multiplier.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The case involves two appeals arising from a motor accident claim. The accident occurred on 20th June 2013 when the deceased, Umesh M. Kholkar, was riding a motorcycle and collided with a car driven by Farha Roohi and owned by Badruddin Hafizullah. The deceased sustained fatal injuries. The claimants, being the legal heirs of the deceased, filed a claim petition before the Motor Accident Claims Tribunal. The Tribunal awarded compensation of Rs. 14,76,000 with interest at 9% per annum, apportioning 50% contributory negligence on the deceased. The insurance company (National Insurance Co. Ltd.) appealed against the award, while the claimants also appealed seeking enhancement. The High Court considered the issues of contributory negligence, income assessment, multiplier, future prospects, deduction for personal expenses, and interest rate. The Court found that the Tribunal's apportionment of 50% contributory negligence was based on evidence and not perverse. Regarding income, the deceased was a carpenter earning Rs.6,000 per month; the Tribunal added 50% future prospects, which the Court upheld as reasonable. The multiplier of 13 for a 49-year-old was correct as per Sarla Verma. Deduction of 1/3rd for personal expenses was proper. However, the interest rate of 9% was reduced to 7.5% per annum. Consequently, the insurance company's appeal was partly allowed, and the claimants' appeal was dismissed.

Headnote

A) Motor Accident Compensation - Contributory Negligence - Apportionment of Liability - Deceased motorcyclist collided with a car; Tribunal apportioned 50% contributory negligence on deceased - Held that the apportionment was based on evidence and not perverse, hence no interference (Paras 10-12).

B) Motor Accident Compensation - Income Assessment - Deceased was a carpenter earning Rs.6,000 per month; Tribunal added 50% future prospects - Held that in the absence of documentary proof of income, the assessment was reasonable and not excessive (Paras 13-15).

C) Motor Accident Compensation - Multiplier - Deceased aged 49 years; Tribunal applied multiplier of 13 - Held that as per Sarla Verma v. DTC, the correct multiplier for age 46-50 is 13, hence no error (Para 16).

D) Motor Accident Compensation - Deduction for Personal Expenses - Deceased was married with two dependents; Tribunal deducted 1/3rd - Held that deduction of 1/3rd is correct as per Sarla Verma (Para 17).

E) Motor Accident Compensation - Interest Rate - Tribunal awarded 9% per annum - Held that 9% is on the higher side; reduced to 7.5% per annum (Para 18).

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Issue of Consideration

Whether the Tribunal erred in assessing the income of the deceased and in applying the multiplier; whether contributory negligence was correctly apportioned; whether the compensation awarded was just and proper.

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Final Decision

First Appeal No.104 of 2016 (Insurance Company) is partly allowed; the interest rate is reduced from 9% to 7.5% per annum. First Appeal No.22 of 2017 (Claimants) is dismissed. No order as to costs.

Law Points

  • Contributory negligence
  • Motor accident compensation
  • Income proof
  • Multiplier
  • Future prospects
  • Deduction for personal expenses
  • Interest rate
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Case Details

2018 LawText (BOM) (07) 115

First Appeal No.104 of 2016 with First Appeal No.22 of 2017

2018-07-09

Nutan D. Sardessai

Shri V. R. Timble for Appellant (in FA 104/2016); Shri S. N. Joshi for Respondent Nos.3 and 4; Ms. A. Dos Reis Falcao holding for Shri Amey Kakodkar for Respondent No.5; Shri S. D. Lotlikar Senior Advocate with Ms. A. Naik for Appellants (in FA 22/2017); Shri S. N. Joshi for Respondent Nos.1 and 2; Shri U. R. Timble for Respondent No.3

National Insurance Co. Ltd. (in FA 104/2016); Umesh M. Kholkar (since deceased) through legal heirs (in FA 22/2017)

Umesh M. Kholkar (since deceased) through legal heirs and others (in FA 104/2016); Farha Roohi, Badruddin Hafizullah, National Insurance Company (in FA 22/2017)

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Nature of Litigation

Motor accident claim for compensation under Section 166 of the Motor Vehicles Act, 1988

Remedy Sought

Claimants sought compensation for death of Umesh M. Kholkar in a motor vehicle accident; Insurance company sought reduction of compensation; Claimants sought enhancement.

Filing Reason

Death of Umesh M. Kholkar due to collision between his motorcycle and a car

Previous Decisions

Motor Accident Claims Tribunal awarded Rs. 14,76,000 with 9% interest, apportioning 50% contributory negligence on deceased.

Issues

Whether the Tribunal erred in apportioning 50% contributory negligence on the deceased? Whether the assessment of income and addition of future prospects was correct? Whether the multiplier of 13 was appropriate? Whether the deduction of 1/3rd for personal expenses was correct? Whether the interest rate of 9% per annum was excessive?

Submissions/Arguments

Insurance company argued that the deceased was negligent and the compensation was excessive. Claimants argued that the income of the deceased was under-assessed and future prospects should be added, and the multiplier should be higher.

Ratio Decidendi

In motor accident claims, the Tribunal's apportionment of contributory negligence based on evidence should not be interfered with unless perverse. Income assessment and multiplier as per Sarla Verma guidelines are correct. Interest rate of 9% is on the higher side and reduced to 7.5%.

Judgment Excerpts

The Tribunal has apportioned 50% contributory negligence on the deceased which is based on evidence and not perverse. The income of the deceased at Rs.6,000 per month with 50% future prospects is reasonable. The multiplier of 13 for a 49-year-old is correct as per Sarla Verma. The interest rate of 9% per annum is on the higher side and is reduced to 7.5% per annum.

Procedural History

Claim petition filed before Motor Accident Claims Tribunal; Tribunal awarded compensation on 30/12/2020; Insurance company filed First Appeal No.104/2016; Claimants filed First Appeal No.22/2017; Both appeals heard together and disposed of by this judgment.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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