IMPORTANT POINT
The court recalibrated compensation based on updated notional income and multipliers, affirming the need for just compensation under the Motor Vehicles Act.

JUDGMENT :

Judgment dated 28.06.2024 is recalled. Modified judgment is as follows;

This appeal has been filed by the claimants in OP(MV) No.2432 of 2012 on the file of the Motor Accidents Claims Tribunal, Thrissur. The respondents herein were the respondents before the tribunal.

2. The case of the appellants/claimants is that on 04.09.2012, the deceased, while pillion riding on a motorcycle bearing Reg.No.KL-08-X-92777 ridden by the first respondent, met with an accident, resulting in grievous injuries; and while undergoing treatment, he succumbed to the injuries. The appellants, being the legal representatives of the deceased, approached the tribunal claiming a total compensation of Rs. 25,00,000/-.

3. The first respondent remained ex parte before the tribunal. The second respondent insurer filed a written statement, admitting the policy coverage for the offending vehicle, but disputing the liability and quantum of compensation claimed. Before the tribunal, Exts.A1 to A8 were marked on the side of the appellants/claimants. No evidence was adduced by the respondents. The tribunal, after analysing the pleadings and materials on record, held that the accident took place on account of the negligence of the rider of the offending vehicle and awarded a sum of Rs.15,79,200/- as compensation under different heads against the second respondent being the insurer. Dissatisfied with the quantum of compensation awarded by the tribunal, the claimants have come up in appeal.

4. Heard the learned counsel for the appellants and the learned Standing Counsel for the respondent insurer.

5. The learned counsel for the appellants claimed enhancement under the following heads;

5.1. Notional income - The learned counsel for the appellants submitted that though the appellants claimed that the deceased was earning Rs.10,000/- per month, the tribunal has fixed the notional monthly income at Rs. 6,000/-, but, as per the decision in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. [2011 (3) KLT Suppl. 80 (SC) = (2011) 13 SCC 236], the notional monthly income of the deceased ought to have been fixed at 8,500/-. Following the judgment inRs. Ramachandrappa (supra), I deem it appropriate to fix the notional monthly income of the appellant at Rs. 8,500/-.

5.2. Loss of dependency – Since the notional monthly income of the deceased is refixed at Rs. 8,500/-, the compensation towards loss of dependency has to be recalculated. Further, for assessing compensation towards loss of dependency, 40% future prospects has to be added to the re-fixed notional income, which would come to Rs. 11,900/- (8500 + 3400). On a perusal of the award, it is seen that the tribunal has taken “17” as the multiplier for assessing compensation towards loss of dependency. Since the deceased was 31 years at the time of the accident, the correct multiplier to be adopted is “16”. Thus, following the decisions in National Insurance Co.Ltd. v. Pranay Sethi [2017(4) KLT 662 (SC)] and Sarla Verma v. Delhi Transport Corporation [2010(2) KLT 802 (SC)], the appellants will be entitled to get a total compensation of Rs.17,13,600/- (11900 x 12 x 16 x 3/4) towards loss of dependency. Accordingly, there will be an additional amount of Rs. 4,28,400/- under this head.

5.3. Loss of consortium - The learned counsel for the appellants submitted that the tribunal awarded only an amount of Rs. 40,000/- as compensation towards loss of consortium, which is on the lower side, and since appellants 1 to 3 were the dependents of the deceased, they are entitled for a total amount of Rs.1,20,000/-. Going by the judgment in National Insurance Co.Ltd. v. Pranay Sethi [2017(4) KLT 662(SC)], I am of the opinion that the appellants can be granted a total compensation of 1,20,000/- under this head. However, it is seen that the tribunal awarded an amount of Rs. 75,000/- towards loss of love and affection, which has to be adjusted with the compensation towards loss of consortium. Hence, after adjusting the am