Determination of compensation in fatal accident claims must consider future income prospects and the appropriate multiplier based on the deceased's age, rather than that of family members.

JUDGMENT :

1. Delay condoned.

2. Leave granted.

3. Heard learned counsel for the appellants as also learned counsel for the respondents and perused the appeals papers.

4. The short issue for consideration in this appeal is with regard to the determination of the appropriate quantum of compensation since the accident having occurred on 02.03.2008 and the son of the claimants having died in the said accident is not in dispute. Insofar as the income of the deceased, the Motor Accidents Claims Tribunal (For short ‘MACT’) as well as the High Court have taken the same at Rs.37,845/-. However, without applying the principle of law has indicated 30% to be added to the said sum. In this regard, it is noted that the deceased was aged about 31 years and the employment documents at exhibits P-1 to P-4 were taken into consideration for noting the income which is in a regular employment.

5. If that be the position, the deceased having a permanent employment at the said salary and the age being less than 50 years, the future prospects would have to be taken at 50%. Further, the MACT as well as the High Court have wrongly applied the multiplier taking the age of the younger of the parents of the deceased. Since the law is well settled that the multiplier applicable to the age of the deceased is to be taken into consideration, in the instant case the appropriate multiplier would be ‘16’.

6. If these aspects are taken into consideration, as against the salary of Rs.37,845/-, the ‘future prospects’ would amount to Rs.18,922/. The total income, therefore, would be Rs.56,767/-. 50% of the said amount is required to be deducted towards self expenses of the deceased. As such, the ‘loss of dependency’ per month could be in a sum of Rs.28,384/-. If the same is taken on the annual basis and the appropriate multiplier of ‘16’ is applied, the amount would be in a sum of Rs.54,49,680/-. A sum of Rs.70,000/- is added towards the conventional heads. The total amount would be in a sum of Rs.55,19,680/-. Since the MACT has already awarded the sum of Rs.32,92,500/-, if the same is deducted, the appellant would be entitled to the enhanced compensation of Rs.22,27,180/- with interest at 6% per annum from the date of the claim before the MACT till the date of payment of the amount.

7. The enhanced compensation shall be deposited by the Insurance Company before the MACT within a period of six weeks from the date of receipt of a copy of this judgment whereupon the disbursement shall be made to the claimants.

8. The appeal is, accordingly, disposed of.

9. Pending application(s) shall also stand disposed of.