1. Case Overview (Para 1-2):

1. • This case is an appeal by New India Assurance Co. Ltd. under Section 173 of the Motor Vehicles Act, 1988, challenging the award granted by the Motor Accident Claims Tribunal (MACT), Alibaug. The award compensates Vivek Niwas Patil for the accidental death of his wife, Deepali, amounting to ₹1,06,94,116 along with 9% interest.

2. Accident and Claim (Para 3):

   • Deepali was a pillion rider on an Activa scooter when it was hit by a tractor. She died due to the injuries sustained. Her husband, Vivek Patil, filed a claim for compensation, stating that Deepali earned ₹55,979 per month as a professor. The claim amount initially sought was ₹5 lakh, but MACT awarded over ₹1 crore based on loss of dependency.

3. Appellant's Contentions (Para 4-6):

   • The insurance company argued that Vivek Patil admitted to earning ₹45,000 monthly, making him not dependent on his wife’s income. They also suggested a deduction of 2/3rd of Deepali’s income, citing the A. Manavalagan case where both spouses are earning.

4. Legal Precedents Cited (Para 7-10):

   • Precedents like Sarla Verma and Pranay Sethi were discussed to determine appropriate deductions for personal expenses (1/3rd vs 2/3rd). The appellant relied on the A. Manavalagan case to argue that both spouses earning a similar amount should result in higher deductions for personal expenses.

5. Court’s Analysis (Para 11-14):

   • The court acknowledged that Vivek Patil, being nearly equally employed, could not be considered fully dependent. The deduction for personal expenses was changed from 1/3rd to 2/3rd due to the peculiar facts of the case.

6. Final Award Calculation (Para 20):

   • After recalculating the deductions (removing traveling allowance and applying a 2/3rd deduction for personal expenses), the compensation amount was reduced to ₹52,59,658. Interest at 9% from the date of the claim application remained unchanged.

Ratio Decidendi:

1. Personal Expenses Deduction: The court ruled that since both the husband and wife were earning nearly equal incomes, a deduction of 2/3rd for personal expenses should be applied instead of the typical 1/3rd.
2. Non-Dependency: When the claimant is not wholly dependent on the deceased's income, higher deductions are justified to ensure that compensation remains just and fair.

Acts and Sections Discussed:

• Motor Vehicles Act, 1988
  • Section 166: Claim for compensation.
  • Section 173: Appeal provision under the Act.

Subjects:

Motor Vehicle Accident Claim - Determination of compensation when both spouses are earning equally.

• Motor Vehicle Act
• Insurance Claim
• Dependency Assessment
• Personal Expenses Deduction