Case Note & Summary
The appeal arose from a claim petition filed by the parents of a 23-year-old engineering student who died in a road accident on 26.11.2017. The appellants contended that the Motor Accident Claims Tribunal had awarded inadequate compensation by fixing the notional income of the deceased at Rs.15,000 per month, ignoring a confirmed campus placement offer from Infosys with a training salary of Rs.22,500 per month. The insurer argued there was no guarantee of employment as the deceased was still studying and had to complete training. The High Court noted that the appointment letter (Ex.P15) showed the deceased had been selected in campus recruitment and was to join on 08.10.2018 with a training salary of Rs.22,500. While the deceased was a student on the date of accident, the firm job offer provided a reasonable basis for future income. The Court fixed notional income at Rs.22,500 per month, applied 40% future prospects, multiplier 18, and 50% deduction for personal expenses, enhancing loss of dependency to Rs.34,02,000. Other heads under Pranay Sethi were confirmed. The total compensation was raised from Rs.23,78,000 to Rs.35,12,000 with 7.5% interest from the date of claim petition. The appeal was allowed, and the insurer was directed to deposit the enhanced amount within four weeks.
Headnote
A) Motor Vehicles – Compensation – Determination of Notional Income for Deceased Student with Campus Placement Offer – Motor Vehicles Act, 1988, Section 173 – The deceased, a 23-year-old final year M.E. student, died in a road accident after having been selected in campus recruitment by Infosys with a confirmed training salary of Rs.22,500 per month. The Tribunal fixed notional income at Rs.15,000 per month. The High Court held that the appointment letter (Ex.P15) constituted credible evidence of future earning potential, and considering the certainty of employment, notional income should be Rs.22,500 per month, leading to an enhanced loss of dependency from Rs.22,68,000 to Rs.34,02,000. (Paras 8-12) B) Tort Law – Motor Accident Compensation – Future Prospects and Multiplier – Motor Vehicles Act, 1988 read with Pranay Sethi and Sarla Verma – The Court applied settled principles: 40% future prospects for a person aged 23 years, multiplier of 18, and 50% deduction for personal expenses since the deceased was a bachelor. Awards under loss of consortium, loss of estate, and funeral expenses were confirmed as per Pranay Sethi. Total compensation enhanced to Rs.35,12,000. (Paras 12-13)
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal should be enhanced, specifically with regard to the notional income of the deceased who was a student with a confirmed campus placement offer at the time of the accident.
Final Decision
The Civil Miscellaneous Appeal was allowed. Compensation enhanced from Rs.23,78,000 to Rs.35,12,000 with interest at 7.5% per annum from the date of claim petition till realisation. The insurer was directed to deposit the enhanced amount within four weeks.
Law Points
- Legal points not extracted
- Notional income of a deceased student with a job offer can be based on salary offered in appointment letter
- Future prospects of 40% for persons aged below 40 years
- Multiplier method as per Sarla Verma
- Deduction of 50% towards personal expenses for a bachelor
- Enhancement of compensation under Section 173 of Motor Vehicles Act
- 1988
