Case Note & Summary
The appeal arises from a claim petition under the Motor Vehicles Act, 1988, filed by the husband and two minor children of the deceased Prameela, who died in a road traffic accident on 02.01.2008. The accident involved a Maruti Omni car and a Canter goods vehicle, and the negligence of the Canter driver was not disputed. The deceased was aged 29 years and worked as a Computer Operator earning Rs.6,000 per month as per salary certificate Ex.P8. The Tribunal awarded total compensation of Rs.5,15,000, which the claimants challenged as inadequate. The High Court found that the Tribunal had applied the wrong multiplier of 17 instead of 18 as per the settled law in Sarla Verma v. Delhi Transport Corporation. The court recalculated the loss of dependency by taking the monthly income of Rs.6,000, deducting 1/3rd for personal expenses, applying multiplier 18, resulting in Rs.8,64,000. The court also upheld the Tribunal's awards of Rs.5,000 for funeral expenses and Rs.10,000 for loss of consortium, finding them reasonable. The total enhanced compensation was fixed at Rs.8,79,000, with interest at 6% per annum from the date of petition. The appeal was allowed in part.
Headnote
A) Motor Vehicles Act - Compensation for Death - Multiplier Method - The Tribunal erred in applying multiplier 17 instead of 18 for a deceased aged 29 years as per Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121 - Held that the correct multiplier is 18 (Para 4). B) Motor Vehicles Act - Loss of Dependency - Deduction for Personal Expenses - Since the deceased was married and had three dependents, deduction of 1/3rd towards personal expenses is appropriate - Held that the loss of dependency is calculated as Rs.4,000 (2/3rd of Rs.6,000) x 12 x 18 = Rs.8,64,000 (Para 4). C) Motor Vehicles Act - Conventional Heads - Funeral Expenses and Loss of Consortium - The Tribunal awarded Rs.5,000 for funeral expenses and Rs.10,000 for loss of consortium - Held that these amounts are reasonable and no enhancement is required (Para 5).
Issue of Consideration
Whether the compensation awarded by the Tribunal for the death of a 29-year-old computer operator earning Rs.6,000 per month is just and proper, and whether the claimants are entitled to enhancement.
Final Decision
Appeal allowed in part. Compensation enhanced from Rs.5,15,000 to Rs.8,79,000 with interest at 6% per annum from the date of petition till deposit. Respondent No.2 (Insurance Company) directed to deposit the enhanced amount within six weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173(1)
- Compensation for death
- Multiplier method
- Sarla Verma v. Delhi Transport Corporation
- Notional income
- Loss of dependency
- Funeral expenses
- Loss of consortium
