Case Note & Summary
The appeal arises from a motor vehicle accident claim. The deceased, Rahamathulla, aged 28 years, died in a motor vehicle accident on 13.10.2000. He was a coolie in a sawmill earning Rs.4,000 per month. He left behind his parents, two wives, and two children. Two claim petitions were filed: one by the present appellants (first wife and her daughter) and another by the mother, second wife, and her child. The Tribunal clubbed the petitions and awarded Rs.2,64,000 with interest at 6% per annum. The appellants sought enhancement. The High Court found that the Tribunal erred in applying multiplier 17 instead of 18 as per Sarla Verma v. DTC. The court also noted that the Tribunal had deducted 1/3rd towards personal expenses, which was appropriate given the number of dependents. No addition for future prospects was made due to lack of evidence. The court recalculated the loss of dependency as Rs.4,000 x 12 x 18 x 2/3 = Rs.5,76,000. Adding Rs.15,000 for loss of consortium, Rs.10,000 for loss of estate, and Rs.5,000 for funeral expenses, the total compensation was enhanced to Rs.6,06,000. The enhanced amount was directed to be paid with interest at 6% per annum from the date of petition. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation - Multiplier - For a deceased aged 28 years, the appropriate multiplier is 18 as per Sarla Verma v. DTC, (2009) 6 SCC 121 - Tribunal erred in applying multiplier 17 - Held that multiplier must be as per the age of the deceased, not the claimants (Paras 4-5). B) Motor Accident Claims - Dependency - Deduction for Personal Expenses - Deceased leaving behind multiple dependents including two wives and children - Deduction of 1/3rd towards personal expenses is appropriate - Held that where number of dependents is 4 or more, deduction is 1/4th, but in this case, due to two wives and children, 1/3rd deduction was not disturbed (Para 6). C) Motor Accident Claims - Future Prospects - Deceased was a coolie earning Rs.4,000 per month - No evidence of future prospects - Held that no addition for future prospects is warranted in the absence of proof (Para 7).
Issue of Consideration
Whether the Tribunal erred in applying multiplier 17 instead of 18 for a deceased aged 28 years, and whether the compensation awarded was just and proper.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.2,64,000 to Rs.6,06,000 with interest at 6% per annum from the date of petition. The Insurance Company is directed to deposit the enhanced amount within six weeks.
Law Points
- Motor Vehicle Act
- 1988
- Section 173(1)
- Compensation
- Multiplier
- Dependency
- Loss of Dependency
- Future Prospects
- Deduction for Personal Expenses
