The multiplier for calculating compensation under the Motor Vehicles Act should be based on the age of the deceased victim, and for a bachelor, 50% of the income should be deducted towards personal expenses.

Indira Banerjee, J.

This appeal filed by New India Assurance Company Limited, is against a judgment and award passed by the Motor Accident Claim Tribunal, Purulia in MAC Case No 86 of 2005, whereby the learned Tribunal awarded Rs. 2,65,000/- jointly in favour of the applicants, being the respondent Nos.1 and 2 herein and directed the appellant insurer to issue a cheque of Rs. 1,00,000/- to the claimant respondent number 2, that is, the father of the deceased victim, and Rs. 1,65,000/- to the claimant respondent No.1, that is, the mother of the deceased victim, after deduction of any amount, that might have already been paid to the claimants under of the Motor Vehicles Act.

2. The judgment and/or award of the learned Tribunal under appeal reveals that the respondent claimants claimed compensation of Rs. 8,00,000/- on account of the death of their son, in an accident, caused by a bus bearing the registration number WB - 55 2848, which was insured by the appellant insurer. The claimants claimed that their son, who was 21 years of age, and a bachelor at the time of his death, earned Rs. 6,500/- per month as a television mechanic.

3. On consideration of the materials and documents on record, the learned Tribunal found that the victim was 21 years of age. The learned Tribunal was also satisfied that the death of the victim was due to an accident and the accident was caused by the bus on which the victim had been travelling. However, on consideration of the materials on record, the learned Tribunal accepted the argument of the appellant insurer that the victim was a mere trainee, with no income.

4. On consideration of the entire facts and circumstances of the case, and on consideration of the materials and the evidence on record, the learned Tribunal awarded to the claimants, compensation of Rs. 2,00,000/- on account of the death of the victim, by assuming his income to be Rs. 15,000/- per annum, deducting 50% therefrom, on account of personal expenses which the victim would have incurred had he been alive, and thereafter multiplying the balance 50% of his income with the multiplier 20.

5. The learned Tribunal awarded a further sum of Rs. 50,000/- by way of reimbursement of actual medical expenses incurred on the treatment of the victim, which had been proved by documentary evidence. The learned Tribunal also awarded Rs. 10,000/- for mental pain and suffering and Rs. 5,000/- towards funeral expenses.

6. Learned Counsel appearing on behalf of the appellant insurer, contended that the learned Tribunal grossly erred in law by applying the multiplier of 20 and submitted that the claimants being the parents, multiplier was to be applied on the basis of the average age of the parents. In other words, if the father was 50 and the mother was 40, the average age of the parents would have to be taken to be 45 years and the multiplier applicable to that age group would have to be applied.

7. Under A of the Motor Vehicles Act, the owner of a motor vehicle or the insurer is, in the case of death or permanent disablement due to accident arising out of the use of the motor vehicle, liable to pay, as the case may be, to the victim, or the legal heirs of the victim compensation as indicated in the second schedule to the said Act.

8. The principles for grant of compensation in motor accidents claims cases have evolved and developed through a plethora of judgments of the Supreme Court interpreting the provisions of the Motor Vehicles Act particularly the scope and ambit and extent of binding value of the second schedule.

9. There can be no doubt that the owner or the insurer of a vehicle is liable to pay in, inter alia, a case of death on account of any accident arising out of use of that vehicle, just compensation to the legal heirs of the deceased victim.

10. Just compensation is adequate compensation which is fair and equitable, in the facts and