Case Note & Summary
The appeal arises from a judgment and award dated 10.08.2011 passed by the Motor Accident Claims Tribunal No.VII, Bijapur in MVC No.2083/2009, awarding compensation of Rs.8,57,250/- with interest at 6% p.a. for the death of Ashok Jagati in a motor vehicle accident on 07.11.2008. The appellant, National Insurance Co. Ltd., challenged the quantum of compensation. The deceased was aged 50 years and was a driver by profession earning Rs.4,500/- per month. The Tribunal applied a multiplier of 17 and deducted 1/3rd towards personal expenses. The High Court held that as per Sarla Verma v. DTC, for a deceased aged 50 years, the multiplier should be 13, and for 5 dependents, the deduction should be 1/4th. The Tribunal also found contributory negligence on the part of the deceased, which was not challenged. Recalculating, the loss of dependency was computed as Rs.4,500 x 12 x 13 x 3/4 = Rs.5,26,500/-. Adding Rs.5,000/- for loss of consortium, Rs.2,000/- for funeral expenses, and Rs.2,500/- for loss of estate, total compensation was reduced to Rs.5,36,000/-. The appeal was partly allowed, reducing the compensation from Rs.8,57,250/- to Rs.5,36,000/- with interest at 6% p.a.
Headnote
A) Motor Accident Claims - Computation of Compensation - Multiplier - The Tribunal applied multiplier 17 for a deceased aged 50 years, which is contrary to the settled principle that multiplier should be based on the age of the deceased as per Sarla Verma v. DTC. For age 50, the appropriate multiplier is 13. (Para 4) B) Motor Accident Claims - Computation of Compensation - Deduction for Personal Expenses - The Tribunal deducted 1/3rd towards personal expenses, but as the deceased had 5 dependents, the deduction should be 1/4th as per Sarla Verma. (Para 4) C) Motor Accident Claims - Contributory Negligence - The Tribunal found contributory negligence on the part of the deceased, but the Insurance Company did not challenge that finding. Hence, the finding of contributory negligence is not disturbed. (Para 5)
Issue of Consideration
Whether the compensation awarded by the Tribunal is excessive and requires reduction, particularly regarding the multiplier applied and the deduction for personal expenses.
Final Decision
Appeal partly allowed; compensation reduced from Rs.8,57,250/- to Rs.5,36,000/- with interest at 6% p.a.
Law Points
- Motor Accident Claims
- Computation of Compensation
- Multiplier
- Deduction for Personal Expenses
- Contributory Negligence
- Section 166 Motor Vehicles Act
- 1988
