The court clarified that claims under Section 166 of the Motor Vehicles Act require consideration of future prospects in compensation calculations, leading to an enhancement of the awarded amount.

JUDGMENT :

The Insurance Company preferred M.A.C.M.A.No.3739 of 2012 underSection 173 of the Motor Vehicles Act, 1988 assailing the award dated 07.09.2007 of the learned Chairman, Motor Accidents Claims Tribunal-cum-I Additional District and Sessions Judge, Visakhapatnam (hereinafter referred to as ‘the Claims Tribunal’) in M.O.P.No.152 of 2005.

2. Questioning the inadequacy of compensation, the legal representatives of the deceased preferred I.A.No.2 of 2027 (Cross-Objections (S.R.) No.11048 of 2017) under Order XLI Rule 22(2) of C.P.C. impugning the award dated 07.09.2007 of the learned Chairman, Motor Accidents Claims Tribunal-cum-I Additional District and Sessions Judge, Visakhapatnam in M.O.P.No.152 of 2005.

3. Heard arguments of Sri Naresh Byrapaneni, the learned counsel for appellant–Insurance Company and Sri S.N.K.Mahanthi, the learned counsel for respondent Nos.1 to3/claimants.

4. On death of Sri G.Ramakrishna in an automobile accident that took place on 21.07.2004 his legal representatives filed M.O.P.No.152 of 2005 praying for a compensation of Rs.24,00,000/-. The owner of the offending vehicle was respondent No.1 and the insurer was respondent No.2. After due trial, the learned Chairman, Motor Accidents Claims Tribunal-cum-I Additional District Judge, Visakhapatnam passed the award in the following terms:

“In the result, this petition is partly allowed with proportionate costs awarding compensation of Rs.14,05,560/- (Rupees fourteen lakhs five thousand five hundred and sixty only) with simple interest at 7.5% p.a from the date of petition till its realization. Respondents 1 and 2 are jointly and severally liable to pay the said compensation within one month from the date of this Judgment. Petitioners 1 to 3 are awarded compensation of Rs.4,68,520/- (Rupees four lakhs sixty eight thousand five hundred and twenty only) each. The share amount of first petitioner includes her consortium. First petitioner is permitted to withdraw an amount of Rs.1,00,000/- (Rupees one lakh only) from out of her share of compensation on deposit and balance of her compensation amount shall be kept in F.D.R in any nationalised bank for a period of 36 months. The shares of compensation of petitioners 2 and 3 shall be kept in F.D.R in any nationalised bank till they attain the age of majority. The first petitioner is permitted to withdraw the interest accrued on the shares of compensation of petitioners 2 and 3 once in three months for the benefit of petitioners 2 and 3. Rest of the petition claim is disallowed without costs. Advocate's fee is fixed at Rs.5,000/-(Rupees five thousand only).

5. Assailing the said award, the insurance company preferred M.A.C.M.A.No.3739 of 2012 whereas the legal representatives of the deceased filed cross-objections whereunder they questioned the inadequate compensation that was awarded.

6. The principal question raised by the insurance company in its appeal is on the premise that the claim was filed under Section 163A of Motor Vehicles Act, 1988 in which case multiplier formula is not applicable and such claims are limited to those whose income does not exceed Rs.40,000/-. It is required to be mentioned here itself that the certified copy of award and the decree passed by the Claims Tribunal are annexed to the appeal papers. The certified copy shows that the claim petition was filed underSection 166 of Motor Vehicles Act. The record of the Claims Tribunal was called for and the same is perused and it is seen that the claim petition was filed under Section 166 of Motor Vehicles Act. Thus, the very contention of the appellant- insurance company that the claim was filed under Section 163A of Motor Vehicles Act is misplaced and therefore, nothing more survives for consideration in that regard.

7. Coming to the cross-objections of the claimants various grounds are urged. Therefore, what has transpired before the Claims Tribunal is required to be noticed here.

8. An auto rickshaw bearing registration No.AP-31-W-9317 was dri