SUPREME COURT OF INDIA
N. P. Singh, Suhas. C. Sen
K. MURUGESH AND OTHERS, APPELLANTS
Versus
M. PALAPPA AND OTHERS, RESPONDENTS.
Civil Appeal No. .. of 1996 (Arising out of SLP (C) No. 11053 of 1994),
decided on January 5, 1996.
Compensation - Motor Accident Claims - Inadequate compensation for victim's death
Fact of the Case:
The appeal was filed on behalf of the parents of a deceased victim of a motor accident seeking higher compensation. The lower courts had awarded a lower amount of compensation, which was increased slightly on appeal to the High Court.
Finding of the Court:
The Supreme Court found that the compensation determined by the lower courts was inadequate considering the victim's potential and expectations from life. The Court directed the insurance company to pay a higher amount of Rs 1,00,000 along with interest.
Issues: Inadequate compensation for victim's death, negligence of the driver, determination of compensation
Ratio Decidendi: The relevant consideration for determining compensation should not be limited to the victim's current earning capacity, but should also consider the victim's potential and expectations from life.
Final Decision: The appeal was allowed, and the insurance company was directed to pay an increased amount of compensation to the appellants.
ORDER
1. Delay condoned.
2. Leave granted.
3. This appeal has been filed on behalf of the parents of the deceased, who became victim in an accident on 4-1-1989. Then he was aged 18 years. The Motor Accidents Claims Tribunal recorded a finding in respect of the negligence of the driver because of which the death occurred, but only an amount of Rs 30,800 along with interest at the rate of 6% p.a. was determined as the compensation payable to the appellants. On appeal being filed on behalf of the appellants, the High Court raised the amount of compensation by another Rs 5000, i.e., to an amount of Rs 35,800.
4. It has been rightly urged that in the facts and circumstances of the case, the amount determined as compensation payable to the appellants is inadequate. The victim was in the prime of his youth and had a lot of expectations from life. Merely because on that date he was not earning being a student, according to us, is not a relevant consideration for the purpose of determining the compensation payable to the appellants.
5. Taking all the facts and circumstances into consideration, we direct Respondent 3, New India Assurance Co. Ltd. to pay an amount of Rs 1,00,000 along with interest at the rate of 6% per annum from the date of filing of the claim petition. If the amount directed by the High Court has already been paid, then the balance amount shall be paid within four months from today.
6. The appeal is allowed. No costs.
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