Case Note & Summary
This appeal arises from a judgment and award dated 30.07.2013 passed by the VI Additional District & Sessions Judge, Belagavi in MVC No.2503/2012, awarding Rs.2,82,000/- with interest at 7% per annum to the parents of the deceased-Ravindra. The deceased, aged 25 years, died in a motor vehicle accident on 10.10.2009 due to rash and negligent driving of the offending vehicle. The claimants, being the parents, sought enhancement of compensation. The High Court examined the correctness of the multiplier applied, the addition for future prospects, and the deduction for personal expenses. The Court held that the multiplier should be based on the age of the deceased (25 years) as per Sarla Verma, i.e., 18, not 13 as applied by the Tribunal. Following Pranay Sethi, 40% addition for future prospects was allowed for a self-employed person. The deduction of 50% for personal expenses for a bachelor was upheld. The Court recalculated the loss of dependency as Rs.6,000 (notional income) + 40% = Rs.8,400, minus 50% = Rs.4,200, multiplied by 12 months and 18 multiplier = Rs.9,07,200. Adding Rs.30,000 for loss of estate and Rs.15,000 for funeral expenses, the total compensation was enhanced to Rs.9,52,200. The interest rate of 7% per annum was maintained. The appeal was allowed in part.
Headnote
A) Motor Accident Compensation - Multiplier - Determination of Multiplier - The multiplier should be based on the age of the deceased, not the claimants. For a deceased aged 25 years, the appropriate multiplier is 18 as per Sarla Verma v. DTC, (2009) 6 SCC 121. The Tribunal erred in applying multiplier 13. (Paras 5-6) B) Motor Accident Compensation - Future Prospects - Addition for Future Prospects - For a self-employed person aged 25 years, 40% addition for future prospects should be applied as per National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680. The Tribunal erred in not adding future prospects. (Paras 7-8) C) Motor Accident Compensation - Deduction for Personal Expenses - For a bachelor, 50% deduction for personal expenses is correct. The Tribunal correctly deducted 50%. (Para 9) D) Motor Accident Compensation - Interest Rate - The rate of interest at 7% per annum awarded by the Tribunal is just and proper and does not require interference. (Para 10)
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper, and whether the appellants are entitled to enhancement.
Final Decision
The appeal is allowed in part. The compensation is enhanced from Rs.2,82,000 to Rs.9,52,200 with interest at 7% per annum from the date of petition till realization. The Insurance Company is directed to deposit the enhanced amount within six weeks.
Law Points
- Motor Accident Compensation
- Multiplier Determination
- Future Prospects
- Deduction for Personal Expenses
- Interest Rate
