IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
Manoj Kumar Garg, J.
Smt. Prem Kanwar & Anr. – Appellant
Versus
Budhapuri & Ors. – Respondent
S.B. Civil Misc. Appeal No. 953/2005
Decided On : 19-12-2022
Compensation - Motor Accident Claims Tribunal - The court enhanced the compensation awarded by the Tribunal based on the deceased's income, age, and future prospects, as well as the principles established in the case of National Insurance Co. Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680]
Fact of the Case:
The appellants filed a misc. appeal against the judgment & award passed by the Motor Accident Claims Tribunal, seeking enhancement of the compensation awarded for the deceased.
Finding of the Court:
The court found that the Tribunal erred in calculating the compensation by using a lower multiplier and not considering future prospects, and therefore enhanced the compensation amount.
Issues: Calculation of compensation based on deceased's income, age, and future prospects.
Ratio Decidendi: The court applied a higher multiplier and considered future prospects in line with the principles established in the case of National Insurance Co. Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680].
Final Decision: The court partly allowed the appeal and enhanced the compensation by Rs.7,06,296/- along with interest @ 6% p.a. from the date of passing of award, to be paid by the Insurance Company to the appellants-claimants.
ORDER
1. Instant misc. appeal has been filed by the appellants-claimants against the judgment & award dated 21.12.2004 passed by learned Judge, Motor Accident Claims Tribunal, Sojat Camp Jaitaran, District Pali whereby the learned Tribunal has awarded a compensation of Rs.3,96,768/- in favour of the appellants-claimants with interest at the rate of 6% per annum from the date of filing of the claim petition.
2. While praying for enhancement, learned counsel for the appellants submits that the learned Tribunal has erred in considering the monthly income of the deceased as Rs.7,641/- per month. Counsel submits that considering the age of the deceased i.e. 48 years, learned Tribunal ought to have applied the multiplier of 13 instead of 6. Learned Tribunal has further committed error in not awarding the future prospects and consortium. It is settled law that the future prospects of advancement in life and career should also be sounded in terms of money to augment the multiplicand. It is prayed that the amount of compensation awarded by the Tribunal may be enhanced.
3. Per contra, learned counsel for the respondent-Insurance Company while vehemently opposing the prayer of the appellants has submitted that amount granted by the Tribunal is fair and just. Therefore, no interference is required in the impugned judgment and award.
4. Heard learned counsel for the appellants as well as learned counsel for the respondents and perused the award impugned.
5. Considering the position of income of the deceased, the Tribunal has rightly assessed the monthly income of the deceased as Rs.7,641/-. However, considering the age of the deceased as 48 years, this Court is of the opinion that while calculating the amount of compensation, the multiplier of 13 ought to have been applied by the learned Tribunal instead of 6. Further, the Tribunal has awarded Rs.30,000/- only under the heads of funeral expenses, love and affection and loss of estate, which is also liable to be enhanced in the facts and circumstances of the case. Moreover, the future prospects are also required to be added while calculating the amount of compensation in the present case in view of the judgments of the Hon’ble Supreme Court rendered in the case of National Insurance Co. Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680]. Accordingly, the re-computation of the award shall be as under :-
Income | : Rs.7,641/- (per month) |
Age | : 48 years |
Multiplier | :13 |
Deduction | : 1/3 |
Future Prospects | : 30% |
Calculation: 7,641X12X13X1/2X30%= Rs10,33,064/-
Funeral Expenses, Love & Affection & Loss of Estate=Rs.70,000/-
Total amount of compensation : Rs.11,03,064/-
Amount awarded by the Tribunal : Rs.3,96,768/-
Enhanced amount : 11,03,064 - 3,96,768 = Rs.7,06,296/-along with interest @ 6% p.a. from the date of passing of award.
6. In view of the above, the amount of compensation awarded by learned Tribunal is enhanced by Rs.7,06,296/- along with interest @ 6% p.a. from the date of passing of award.
7. Accordingly, the civil misc. appeal is partly allowed. The amount of Rs.7,06,296/- (Seven Lakh Six Thousand Two Hundred Ninety Six only) shall be paid by the Insurance Company to the appellants-claimants, in addition to the amount already awarded by the Tribunal vide order dt. 21.12.2004, within a period of eight weeks from today. If the enhanced amount is not paid within the stipulated period, the claimants-appellants shall be entitled to an interest @ 7% p.a on the said amount. The amount so deposited by the Insurance Company shall be deposited in the Saving Account of the claimants, detail of which shall be furnished by the claimants before the Tribunal.
The court applied the principles established in the case of National Insurance Co. Ltd. Vs. Pranay Sethi & Ors. [(2017) 16 SCC 680] to enhance the compensation by considering the deceased's income, a....
The main legal point established in the judgment is the correct calculation of compensation in motor accident cases, considering the deceased's income, application of the multiplier, and the inclusio....
Future income prospects must be considered in compensation calculations, and the appropriate multiplier should reflect the deceased's age and established legal guidelines.
Compensation calculations in motor accident claims must include allowances and future prospects, with appropriate multipliers based on the deceased's age.
The court established that compensation for a deceased must consider the age-based multiplier and future prospects, enhancing the total amount awarded.
The main legal point established in the judgment is the determination of compensation under the Motor Vehicle Act, 1988, with specific emphasis on the deceased's monthly income, future prospects, and....
The main legal point established in the judgment is the entitlement to future prospects, with the court holding that the claimants are entitled to 50% in addition towards future prospects as the dece....
The court established that compensation calculations must accurately reflect the deceased's age, income, dependents, and future prospects, adhering to established legal precedents.
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