IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
REKHA BORANA, J.
Janta W/o Late Khimaram – Appellant
Versus
Kanaram S/o Hakaji – Respondent
S.B. Civil Misc. Appeal No. 5190 of 2011
Decided On : 06-11-2024
(A) Motor Vehicles Act, 1988 - Sections 168 and 173 - Compensation for loss of income - The Tribunal awarded Rs. 5,31,600/- which was deemed insufficient by the appellants. The court considered future prospects and applied a multiplier of 18, enhancing the compensation to Rs. 11,39,760/-. (Paras 8, 10, 15)
(B) Interest - The court modified the interest rate to 6% on the enhanced amount, directing the insurance company to deposit the award amount within two months. (Paras 17)
ORDER :
1. Admit. Issue notice.
2. Service on respondent Nos. 1 & 2 is dispensed with at the risk of the appellants.
3. Learned counsel Mr. A.K. Dhadhich has put in appearance for respondent No. 3 Insurance Company. Service is hence, complete.
4. Both the counsels unanimously submitted that the appeal be finally heard at this stage itself.
5. The present misc. appeal has been filed by the appellants-claimants seeking enhancement of the compensation amount awarded vide judgment dated 25.07.2011 passed by the Motor Accident Claims Tribunal, Barmer in MAC Case No. 190/2008.
The learned Tribunal, vide impugned judgment dated 25.07.2011 awarded a sum of Rs. 5,31,600/- in favour of the claimants alongwith interest @ 9% per annum from the date of filing of claim petition i.e. 20.09.2008.
6. Brief facts of the case are that a claim petition was preferred by the claimants with the submission that on 25.07.2008, Tilokaram was driving a mini truck bearing registration No. RJ-04-G -1843 from Barmer to Dhorimana on National Highway 15. The truck of respondent No. 1 bearing registration No. RJ-04-GA-2129 was parked negligently in the middle of the highway without any indicators. At about 11:00 pm, due to the flickering of the lights, Tilokaram could not see the truck parked on the highway and the mini truck collided into the parked truck. Unfortunately, Tilokaram and second driver Khimaram succumbed to the injuries. An FIR pertaining to the accident was lodged at Police Station Dhorimana, District Barmer.
The offending vehicle, on the date of accident, was insured with respondent No. 3- Insurance Company.
7. The appellants-claimants are the dependants of deceased Khimaram. The claimants claimed compensation to the tune of Rs. 29,75,000/-. However, the learned tribunal after framing the issues, evaluating the evidence available on record and after hearing the counsel for the parties, while assessing the monthly income of the deceased to be Rs. 3,000/- awarded total compensation of Rs. 5,31,600/- in favour of the claimants-appellants, the breakup of which is an under:
| 1. | Income per month (after deduction towards personal expenses (1/5) in the monthly income of Rs. 3000/-) | Rs. 2,400/- |
| 2. | Loss of Annual Income (as per the age of the deceased i.e. less than 25 years, multiplier of 17) | 2,400 x 12 x 17 = Rs. 4,89,600/- |
| 3. | Under the head of ‘consortium’ | 5,000 x 8 = Rs. 40,000/- |
| 4. | Under the head of ‘Funeral expenses’ | Rs. 2,000/- |
| 5. | Total amount of compensation awarded by the Tribunal | Rs. 5,31,600/- |
Learned Tribunal also awarded interest @ 9% per annum from the date of filing of the claim petition.
8. Averring the compensation to be meagre, the claimants appellants have preferred the present appeal. Learned counsel for the appellants raised the following grounds:
(ii) Secondly, learned Tribunal erred in applying a multiplier of 17 only whereas keeping into consideration the age of the deceased, i.e. 24 years, a multiplier of 18 ought to have been applied in terms of the guidelines as set out in the case of Sarla Verma and Ors. Vs. Delhi Transport Corporation and Ors. (2009) 6 SCC 121.
(iii) Thirdly, the learned Tribunal committed a significant error by awarding insufficient compensation qua the other conventional heads.
(iv) Lastly, awarding interest @ 9% per annum is also erroneous as the Hon’ble Apex Court as well as this Court have consistently awarded interest @12% and in certain cases even @ 15%.
9. Heard learned counsel for the parties and perused the material available on record.
10. Keeping into consideration the settled position of law regarding the
Sarla Verma and Ors. Vs. Delhi Transport Corporation and Ors. (2009) 6 SCC 121
National Insurance Company Limited Vs. Pranay Sethi and Ors. (2017) 16 SCC 680
Magma General Insurance Co. Ltd. Vs Nanu Ram Alias Chuhru Ram
The court ruled that future prospects must be considered in compensation calculations, applying a multiplier based on the deceased's age.
The court ruled that future prospects must be considered in compensation calculations, leading to an enhanced award for the claimants.
Future income prospects must be considered in compensation calculations, and the appropriate multiplier should reflect the deceased's age and established legal guidelines.
The court recalculated compensation based on the deceased's potential earnings as a Mason, enhancing the total compensation awarded to Rs.11,82,312/- with interest.
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 correct computation of compensation in motor accident claims, including the consideration of future prospects, application of the correct multi....
The court established that the multiplier for compensation must reflect the deceased's age and future earning potential, ensuring all relevant compensation heads are adequately addressed.
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