Case Note & Summary
The appeal was filed by the claimants, being the wife, minor daughter, and parents of the deceased Annappa Mallappa Hipparagi, against the judgment and award dated 06/11/2013 passed by the III Additional Senior Civil Judge and Member, Motor Accident Claims Tribunal, Bengaluru (SCCH-18) in MVC No.2553/2012. The Tribunal had awarded compensation of Rs.87,37,145/- with interest at 8% per annum for the death of the deceased in a road traffic accident. The deceased was aged 39 years and was working as a Software Engineer earning Rs.75,000/- per month. The claimants sought enhancement of compensation. The High Court, after hearing the counsel for the appellants and the respondent-Insurance Company, held that the Tribunal had erred in applying a multiplier of 13 instead of 15 as per the principles laid down in Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, and in not adding 50% towards future prospects as per the decision in Rajesh v. Rajbir Singh, (2013) 9 SCC 54. The Court recalculated the loss of dependency by taking the monthly income as Rs.75,000/-, adding 50% towards future prospects, deducting 1/4th towards personal expenses, and applying multiplier 15, resulting in a total loss of dependency of Rs.1,18,99,000/-. The Court also awarded Rs.1,00,000/- towards loss of consortium, Rs.1,00,000/- towards loss of love and affection, Rs.25,000/- towards funeral expenses, and Rs.10,000/- towards loss of estate. The total compensation was enhanced to Rs.1,18,99,000/- with interest at 8% per annum from the date of petition till realization. The appeal was allowed in part.
Headnote
A) Motor Accident Claims - Compensation - Enhancement - Deceased aged 39 years, Software Engineer - Claimants sought enhancement of compensation awarded by Tribunal - Held that Tribunal erred in applying multiplier of 13 instead of 15 as per Sarla Verma case, and in not adding 50% towards future prospects - Compensation enhanced from Rs.87,37,145/- to Rs.1,18,99,000/- with interest at 8% per annum (Paras 1-10).
Issue of Consideration
Whether the claimants are entitled to enhancement of compensation awarded by the Tribunal for the death of the deceased in a road traffic accident.
Final Decision
Appeal allowed in part. Compensation enhanced from Rs.87,37,145/- to Rs.1,18,99,000/- with interest at 8% per annum from the date of petition till realization.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation for death
- Multiplier method
- Future prospects
- Deduction for personal expenses
- Interest rate
