Case Note & Summary
The case involves an appeal by the National Insurance Company Limited and a cross-objection by the claimant K.B. Shivakumar Swamy against the judgment and award dated 22.08.2008 passed by the VIII Additional Judge, Court of Small Causes, MACT, Bangalore in MVC No.2405/2007. The Tribunal had awarded a compensation of Rs.2,97,000/- with interest at 6% p.a. excluding future medical expenses of Rs.20,000/-. The Insurance Company challenged the award on the ground that the multiplier applied was incorrect, while the claimant sought enhancement of compensation. The High Court, after hearing both sides, modified the award by applying the correct multiplier as per the Second Schedule of the Motor Vehicles Act, 1988, and enhanced the compensation to Rs.3,17,000/- with interest at 6% p.a. from the date of petition till deposit. The court held that the multiplier should be based on the age of the claimant, not the age of the deceased, and directed the Insurance Company to deposit the enhanced amount within four weeks.
Headnote
A) Motor Accident Compensation - Multiplier Method - Second Schedule - The court considered the correct multiplier to be applied for computing loss of future earnings due to permanent disability - Held that the multiplier should be as per the Second Schedule of the Motor Vehicles Act, 1988, based on the age of the claimant (Paras 4-6).
Issue of Consideration
Whether the Tribunal erred in applying the multiplier and computing compensation for injuries sustained in a motor accident?
Final Decision
Appeal and cross-objections are partly allowed. The award is modified to Rs.3,17,000 with interest at 6% p.a. from date of petition till deposit. Insurance company to deposit the amount within four weeks.
Law Points
- Motor Accident Compensation
- Multiplier Method
- Second Schedule
- MV Act
- Section 173(1)
- Order 41 Rule 22 CPC
