Case Note & Summary
The appeal was filed by the claimants, the widow and children of Tukaram Mohite, who died in a motor vehicle accident on 22.03.2010. The deceased was aged 50 years and was a self-employed person. The Motor Accidents Claims Tribunal, Belgaum, awarded a total compensation of Rs. 3,84,000 with interest at 6% per annum. The claimants sought enhancement, contending that the Tribunal erred in deducting family pension from the loss of dependency and in applying a multiplier of 11 instead of 13. The High Court held that family pension is not deductible from the compensation amount as it is a separate benefit. The Court also held that the multiplier should be based on the age of the deceased, which was 50 years, warranting a multiplier of 13 as per the Sarla Verma case. The notional income of the deceased was enhanced from Rs. 3,000 to Rs. 4,500 per month. After deducting 1/3rd towards personal expenses, the loss of dependency was recalculated as Rs. 4,68,000. Adding conventional heads, the total compensation was enhanced to Rs. 5,08,000. The appeal was partly allowed, and the enhanced amount was directed to be paid with interest at 6% per annum from the date of petition.
Headnote
A) Motor Accident Compensation - Loss of Dependency - Deduction of Family Pension - The Tribunal's deduction of family pension from the loss of dependency is contrary to law; family pension is a separate benefit and cannot be set off against compensation payable under the Motor Vehicles Act, 1988. (Paras 5-7) B) Motor Accident Compensation - Multiplier - Age of Deceased - The multiplier should be based on the age of the deceased, not the claimants. The Tribunal erred in applying a multiplier of 11 instead of 13 based on the deceased's age of 50 years. (Paras 4-5) C) Motor Accident Compensation - Notional Income - Self-Employed Person - In the absence of proof of income, the notional income of the deceased should be assessed reasonably. The Tribunal's assessment of Rs. 3,000 per month was low; the High Court enhanced it to Rs. 4,500 per month. (Paras 4-5)
Issue of Consideration
Whether the Tribunal erred in deducting family pension from the loss of dependency and in applying an incorrect multiplier for computing compensation under the Motor Vehicles Act, 1988.
Final Decision
Appeal partly allowed; compensation enhanced from Rs. 3,84,000 to Rs. 5,08,000 with interest at 6% per annum from the date of petition till deposit.
Law Points
- Family pension is not deductible from loss of dependency under Motor Vehicles Act
- Multiplier to be based on age of deceased
- Notional income assessment for self-employed persons
