IN THE HIGH COURT AT CALCUTTA
Shampa Dutt (Paul), J.
Sri Chandra Kumar Lama - Appellant
Vs.
The National Insurance Company Ltd. & Anr. - Respondent
FMA 553 of 2014 (FMAT 1709 of 2008)
Decided On : 05-07-2024
Compensation - Motor Accident Claims - Motor Vehicles Act, 1988, Section 166 - The court interpreted the provisions of the Motor Vehicles Act regarding compensation for loss of dependency, notional income for homemakers, and the application of multipliers in determining just compensation.
Fact of the Case:
The claimant's wife died in a vehicular accident, leading to a claim for compensation under the Motor Vehicles Act. The Tribunal initially awarded compensation based on notional income, which the claimant contested as inadequate.
Finding of the Court:
The court found that the Tribunal's assessment of notional income and compensation was insufficient and revised the compensation amount, taking into account future prospects and proper deductions for personal expenses.
Issues: Whether the compensation awarded by the Tribunal was just and adequate considering the notional income of the deceased and the applicable multipliers.
Ratio Decidendi: The court emphasized the need for a fair assessment of notional income for homemakers and the inclusion of future prospects in compensation calculations, aligning with established legal precedents.
Result: The court modified the Tribunal's award, increasing the compensation amount to Rs. 4,98,800/- with interest.
JUDGMENT :
Shampa Dutt (Paul) , J.
1. The present appeal has been preferred by the claimant being aggrieved by the judgment and order dated 15.09.2008 passed by the Judge, Motor Accident Claims Tribunal (District Judge), Jalpaiguri in M.A.C. Case No.313 of 2007, under Section 166 of the Motor Vehicles Act, 1988.
2. The facts:-
3. The opposite party no.2, National Insurance Company Ltd. has contested the present case by filing a written statement, denying all the material allegations made by the petitioner in his application under Section 166 of the Motor Vehicle Act. It is the main contention of the O.P. No.2 that the driver was not at all responsible for the accident, as he was driving the offending vehicle at a very moderate speed with all care and caution as per M.V. Act at the material point of time. And that, deceased Sona Bhutia herself was liable for such accident.
4. The claimants examined two witnesses and relevant documents proved, were marked Exhibit- 1 to 6.
5. The opposite party/Insurance Company did not adduce any witness nor produced documents in support of their contention.
6. The learned Tribunal considering the evidence and materials on record, held:-
Dated: 15.09.2008
Although no age proof certificate has been filed by the petitioner to prove the age of the deceased Sona Bhutia, but it is seen from Ext. 3 (copy of P.M. examination report) that Sona Bhutia died at the age of 30 years. So, I select 18 as multiplier for the purpose of compensation of the quantum of compensation payable to the claimant-petitioner in this case.
Income of the deceased Sona Bhutia, as claimed by the petitioner has not been proved by any evidence. Accordingly, I accept Rs.15,000/- per annum as the deceased’s gross notional income treating her as a non- earning person. From this amount it has to be deducted the deceased’s personal living expenses about which no evidence is forthcoming. In the absence of evidence, it has been held by the Hon’ble Supreme Court in its decision reported in 1994 A.C.J. at page 1 that it is not unusual to deduct 1/3rd of the gross income towards the personal living expenses and to treat the balance as the amount likely to have been spent by the deceased on the members of his family and his dependants. This loss of dependency should capitalize with the appropriate multiplier. One third of Rs.15,000/- per annum comes to Rs.5,000/- per annum and after deduction of this amount from Rs.15,000/- the balance amount of Rs.10,000/- per annum is to be treated as to the amount likely to have been spent by the deceased on the members of his family and dependants. This loss of dependency should capitalize with the multiplier 18 which appears to be appropriate to the age of the deceased Sona Bhutia. The compensation, therefore, comes to Rs.18,000/- (Rs.10,000/- x 18). Rs.2,000/- as funeral expenses, Rs.5,000/- as loss of consortium and Rs.2,500/- as loss of estate are to be added with the said amount of Rs.1,80,000/-. Thus, the total amount of compensation would be Rs.1,89,500/- which is rounded off to Rs.1,90,000/- only.
Considering the facts and circumstances of the present case, at this stage I am not awarding any interest in favour of the claimant petitioner. It will, however, not be unreasonable to allow interest in favour of the claimant- petitioner @ 9% per annum only to meet the undue delay in payment of compensation by the opposite parties to the claimant-petitioner costly.
Sd/- Judge, M.A.C.T.(D.J.)
Jalpaiguri.”
7. Being aggrieved, the claimants/appellant has preferred the present appeal on the gro
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The judgment establishes that notional income for homemakers must reflect their contributions and future prospects should be considered in compensation calculations.
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The court established that actual income evidence must be prioritized over notional income in compensation claims under the Motor Vehicle Act.
(1) Preserving existing standard of living of a deceased’s family is a fundamental endeavour of motor accident compensation law.(2) Various methods can be employed by Court to fix notional income of ....
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