Clarity on the treatment of future prospects for those who are self-employed or engaged in gainful employment at a fixed salary is essential in determining compensation in motor vehicular accident cases.

1. On 04.09.2007, Nouwat Singh suffered injuries in a motor vehicular accident due to negligent driving of motor vehicle described as car bearing registration No. DL-3CAF-5638, admittedly insured against third party risk for the period in question with the appellant insurance company (insurer) and died in the consequence. His wife and children, they being first to sixth respondent herein (collectively, the claimants), instituted accident claim case (MACT No. 53/2008), which, after inquiry, was allowed, by judgment dated 28.08.2009, compensation in the sum of Rs. 8,61,000/- having been awarded with interest @ seven and half per cent (7.5%) per annum, the liability being fastened on the appellant (insurer).

2. The insurer questions the computation by the appeal at hand pointing out that the tribunal has added the element of future prospects even though the income was assumed with the aid of minimum wages (Rs. 3600/-). It is also pointed out that the tribunal had found that the second and third respondents were married sons of the deceased and, therefore, they were not dependents, the sixth respondent being married daughter, also not financially dependent. In these circumstances, there were three prime claimants they being the first, fourth and fifth respondent. The submissions of insurer is that, in this view, the deduction on account of personal and living expenses should have been made to the extent of one-third rather than one-fourth, as done by the tribunal.

3. In the case reported as Sarla Verma and Others vs. Delhi Transport Corporation and Another, (2009) 6 SCC 121, Supreme Court, inter-alia, ruled that the element of future prospects of increase in income will not be granted in cases where the deceased was “self employed” or was working on a “fixed salary.” Though this view was affirmed by a bench of three Hon’ble Judges in Reshma Kumari and Others vs. Madan Mohan and Another, (2013) 9 SCC 65, on account of divergence of views, as arising from the ruling in Rajesh and Others vs. Rajbir and Others, (2013) 9 SCC 54, the issue was later referred to a larger bench, inter-alia, by order dated 02.07.2014 in National Insurance Company Ltd. vs. Pushpa and Others, (2015) 9 SCC 166.

4. Against the above backdrop, by judgment dated 22.01.2016 passed in MAC Appeal No. 956/2012 (Sunil Kumar vs. Pyar Mohd.), this Court has found it proper to follow the view taken earlier by a learned single judge in MAC Appeal No. 189/2014 (HDFC Ergo General Insurance Co. Ltd. vs. Smt. Lalta Devi and Others) decided on 12.01.2015, presently taking the decision in Reshma Kumari (Supra) as the binding precedent, till such time the law on the subject of future prospects for those who are “self-employed” or engaged in gainful employment at a “fixed salary” is clarified by a larger bench of the Supreme Court.

5. Indeed, there being no clear evidence as to the nature of avocation or regularity of the gainful employment, the income having been assumed on the basis of minimum wages, the element of future prospects has to be kept out. Further, given the above status of the children, the deduction on account of personal and living expenses should have been made only to the extent of one-third. The tribunal correctly adopted the multiplier of 14, given the age of the deceased as 45 years.

6. In above view, the compensation on account of loss of dependency is worked out as (3600/- x 2/3 x 12 x 14) Rs. 4,03,200/- rounded off to Rs. 4,04,000/-.

7. It is, however, noted that the tribunal did not award the non-pecuniary damages appropriately. The tribunal awarded Rs. 1,50,000/- towards loss of love and affection and Rs. 10,000/- each towards loss of consortium and funeral expenses and loss of estate which was not appropriate.

8. Given the dispensation in Rajesh and Others vs. Rajbir Singh and Others, (2013) 9 SCC 54 and Shashikala vs. Gangalakshmamma, (2015) 9 SCC 150, compensation in the sum of Rs.1 lakh each on account of loss of love & affection and loss of con