Case Note & Summary
The appellant, Ali Imam, aged about 38 years and working as a Senior Merchandiser, sustained injuries in a motor vehicle accident and filed a claim petition before the Motor Accidents Claims Tribunal (MACT) seeking compensation of Rs. 40,00,000/-. The Tribunal partly allowed the claim and awarded Rs. 6,48,400/- as compensation. Dissatisfied with the quantum, the appellant filed the present appeal under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement. The High Court noted that the Tribunal had applied a multiplier of 15 based on the age of the injured, but as per the settled principle in Sarla Verma v. Delhi Transport Corporation, the correct multiplier for a person aged 38 years is 16. The Court also observed that the Tribunal had assessed permanent disability at 15% to the whole body, which was not challenged. The notional income of Rs. 4,500/- per month taken by the Tribunal was also not disputed. The Court recalculated the compensation for loss of future earnings using the correct multiplier and awarded an additional amount of Rs. 25,920/-. The total compensation was enhanced from Rs. 6,48,400/- to Rs. 6,74,320/-. The appeal was partly allowed with interest at 6% per annum from the date of petition till deposit.
Headnote
A) Motor Accident Compensation - Multiplier - Age of Injured - The Tribunal erred in applying multiplier 15 instead of 16 based on the age of the injured claimant who was 38 years old at the time of accident - Held that the correct multiplier as per Sarla Verma case is 16 for age group 36-40 years (Para 6). B) Motor Accident Compensation - Loss of Future Earnings - Permanent Disability - The Tribunal assessed permanent disability at 15% to the whole body, which was not challenged - Held that compensation for loss of future earnings must be calculated using the correct multiplier and notional income (Para 6). C) Motor Accident Compensation - Notional Income - The Tribunal took notional income at Rs. 4,500/- per month, which was not disputed - Held that the same is reasonable and no interference is called for (Para 6).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper, and whether the multiplier adopted by the Tribunal is correct.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs. 6,48,400/- to Rs. 6,74,320/- with interest at 6% per annum from the date of petition till deposit.
Law Points
- Motor Accident Compensation
- Multiplier Determination
- Age of Injured
- Section 173(1) MV Act
- Just Compensation
