Case Note & Summary
The case involves two appeals arising from a motor accident claim petition. The accident occurred on 20.12.2009 when a 9-year-old boy named Manjunatha, son of Rudrappa and Kamalamma, was crossing the road near Bedarashivanakere village and was hit by a lorry bearing registration No. KA-17-A-6478. The boy died on the spot. The claimants, parents of the deceased, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Senior Civil Judge and Additional MACT, Chitradurga, seeking compensation. The Tribunal, by judgment and award dated 11.07.2011 in MVC No.159/2010, awarded Rs.6,26,000 with interest at 6% per annum from the date of petition till realization. The insurance company, ICICI Lombard General Insurance Co. Ltd., appealed against the award (MFA No.10037/2011) contending that the compensation was excessive and that the Tribunal erred in applying multiplier 15 and notional income of Rs.30,000 per annum. The claimants also appealed (MFA No.9154/2012) seeking enhancement of compensation. The High Court considered both appeals together. The court noted that the deceased was a minor aged 9 years and that the multiplier method is applicable. Relying on the principles laid down in Sarla Verma v. Delhi Transport Corporation, the court held that the appropriate multiplier for the age of the mother (40 years) is 15. The notional income was taken as Rs.30,000 per annum as per the Second Schedule to the Motor Vehicles Act. After deducting 1/3rd towards personal expenses, the loss of dependency was calculated as Rs.3,00,000 (Rs.30,000 x 15 x 2/3). Adding Rs.1,00,000 for loss of love and affection, Rs.1,00,000 for loss of estate, and Rs.76,000 for funeral expenses, the total compensation was computed as Rs.5,76,000. The court reduced the compensation from Rs.6,26,000 to Rs.5,76,000 and maintained the interest rate at 6% per annum. The insurance company's appeal was allowed in part, and the claimants' appeal was dismissed. The court directed the insurance company to deposit the modified compensation amount within six weeks.
Headnote
A) Motor Vehicles Act - Compensation for Death of Minor - Multiplier Method - The Tribunal awarded Rs.6,26,000 for the death of a 9-year-old boy using multiplier of 15 and notional income of Rs.30,000 per annum - High Court held that multiplier should be 15 as per Sarla Verma case, but notional income should be Rs.30,000 per annum as per Second Schedule - Reduced compensation to Rs.5,76,000 after deducting 1/3rd for personal expenses and adding conventional heads - Held that the multiplier method is applicable for minors (Paras 8-12). B) Motor Vehicles Act - Contributory Negligence - The accident occurred when the deceased minor was crossing the road and was hit by a lorry - Tribunal held that the driver of the lorry was negligent - High Court affirmed finding of negligence on part of lorry driver - Held that no contributory negligence can be attributed to a minor child (Para 6). C) Motor Vehicles Act - Interest Rate - Tribunal awarded interest at 6% per annum - High Court modified interest to 6% per annum from the date of petition till deposit - Held that interest rate of 6% is reasonable (Para 13).
Issue of Consideration
Whether the compensation awarded by the Tribunal for the death of a minor in a motor accident is just and proper, and whether the insurance company is liable to pay the entire compensation.
Final Decision
The High Court allowed the insurance company's appeal in part and dismissed the claimants' appeal. The compensation was reduced from Rs.6,26,000 to Rs.5,76,000 with interest at 6% per annum from the date of petition till deposit. The insurance company was directed to deposit the modified compensation within six weeks.
Law Points
- Motor Accident Claims
- Compensation for Death of Minor
- Multiplier Method
- Contributory Negligence
- Interest Rate
