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RAJASTHAN HIGH COURT BENCH AT JAIPUR
Narendra Singh Dhaddha, J.
United India Insurance Company - Appellant
Versus
Laxman Singh & Ors. - Respondents
S.B. Civil Miscellaneous Appeal No. 2997 of 2022
Decided On : 17-04-2023
MODIFICATION - MOTOR ACCIDENT CLAIM - The court modified the compensation awarded by the Tribunal, recognizing the need to deduct the personal expenses of the deceased from the income calculation. The court emphasized the importance of accurately assessing the net income of the deceased to ensure fair compensation, leading to a revised award of Rs.6,18,856/- instead of the original Rs.8,93,284/-.
Fact of the Case:
The appellant Insurance Company appealed against the Tribunal's award of Rs.8,93,284/- in favor of the claimants due to a fatal accident on 03.11.2014, arguing that the Tribunal failed to deduct the deceased's personal expenses from the income calculation.
Finding of the Court:
The court found that the Tribunal did not account for the personal expenses of the deceased while calculating the compensation, which was an oversight that needed correction.
Issues: Whether the Tribunal correctly calculated the compensation by including the deceased's personal expenses in the income assessment.
Ratio Decidendi: The court held that personal expenses must be deducted from the income of the deceased to arrive at a fair net income for compensation purposes, thereby modifying the award accordingly.
Result: The appeal was partly allowed, and the compensation was modified to Rs.6,18,856/-.
ORDER
1. Instant appeal has been preferred by the appellantInsurance Company against the judgment and award dated 21.07.2022 passed by learned Motor Accident Claims Tribunal No.3, Kotputli (hereinafter referred to as 'the Tribunal'), District Jaipur in Motor Claim Case No.167/2022 whereby an amount Rs.8,93,284/- was awarded as a compensation in favour of the claimants-respondents, due to an accident which occurred on 03.11.2014.
2. The Tribunal on the basis of the pleading of the parties, framed the issues and evaluated the evidence on record. After hearing counsel for the parties, decided the claim petition of the claimants-respondents and awarded compensation to the tune of Rs.8,93,284/- under various heads in favour of the claimants-respondents.
3. Learned counsel for the appellant-insurance Company submits that the Tribunal has not deducted the personal expenses of the deceased while computing the income of the deceased. So, the judgment of the Tribunal be modified accordingly.
4. Learned counsel for the respondents has no objection regarding deduction of the personal expenses of the deceased.
5. I have considered the arguments advanced by learned counsel for the appellant-Insurance Company as well as learned counsel for the respondents and perused the judgment dated 21.07.2022.
6. It is an admitted position that while calculating the award, learned Tribunal has not deducted the personal expenses of the deceased from the income of the deceased. The age of deceased was between 51 to 55 years. Since the deceased was an unskilled labour, therefore on the basis of minimum wages prevalent at the relevant point of time, her monthly income is assessed at Rs.5,670/- (189X30). For the persons falling within the age bracket of 51 to 60 years. 10% is to be added towards future prospects. In this view of the matter, the amount is calculated thus:
| Annual Income | 5670 X 10% = 6237 X 11 X 12= 8,23,284/- |
| Personal Expenses of the deceased | (-)2,74,428/- |
| Net Amount | 5,48,856/- |
| Amount awarded by learned Tribunal in various heads | (+) 70,000/- =6,18,856/- |
7. In view of the above, judgment dated 21.07.2022 passed by the Tribunal is modified to the extent that claimants are entitled to get a sum of Rs.6,18,856/- from the appellant-Insurance Company instead of Rs.8,93,284/-. Rest part of the impugned judgment shall remain the same.
8. Consequently, the appeal is partly allowed.
9. Pending application(s), if any, also stand(s) disposed of.
Compensation in motor accident claims must accurately reflect the net income of the deceased by deducting personal expenses to ensure fairness in the award.
The court established that minimum wage serves as the basis for calculating compensation, future prospects must be included, and the appropriate multiplier reflects the deceased's age.
The insurance company is liable to pay compensation in motor accident claims, even if it can recover the amount from the vehicle's owner and driver.
Compensation assessment must follow principles of fairness and equity, taking into account the date of the accident and dependents' status.
The court emphasized that compensation must be just and fair, with standard deductions for personal expenses set at 50% for bachelors unless proven otherwise.
Assessment of compensation in motor accident claims should consider the deceased's income, dependency of surviving family members, and entitlement to future prospects and additional compensation unde....
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