The main legal point established in the judgment is the correct assessment of compensation in cases of death under the Motor Vehicles Act, 1988, Section 163-A, based on the principles of the measure of damage, multiplier method, and factors to be considered for calculating pecuniary loss to a dependent.

1. The appeal is preferred by the claimants against the award dated 10.02.2005 made in M.C.O.P No.991 of 2003 by the Motor Accident Claims Tribunal, First Additional District Court, Erode.

2. Background facts in a nutshell are as follows:

One deceasd Nandagopal met with motor traffic accident on 17.05.2003 at about 03.45 P.M. The deceased was riding his motor cycle bearing registration No.TN 37 x3772 in Uthukuli to Padiyur road. While he was nearing Sivagiri four road juntion, a Tractor bearing registration No.TN 38 TT 2070 was coming from west to east in a rash and negligent manner with high speed and hit the motor cycle. Due to the impact, the deceased sustained fatal injuries and died on the spot. The claimants are the wife, son, daughters and parents of the deceased. They claimed a sum of Rs.20,00,000/- as compensation. The said Tractor was insured with the third respondent insurance company who resisted the claim. On pleadings, the Tribunal framed the following issues:-

"1. Whether the accident had occurred due to the rash and negligent driving of the driver of the Tractor or not?

2. What is the compensation, the claimants are entitled to?”

After considering the oral and documentary evidence, the Tribunal held that the accident had occurred only due to the rash and negligent driving of the driver of the Tractor and awarded compensation of Rs.2,87,320/- with interest @ 9% per annum from the date of claim and the details of the same are as under:-

Loss of income=Rs.2,80,320/-

Loss of consortium=Rs. 5,000/- Funeral expenses=Rs. 2,000/-

Total=Rs.2,87,320/-

Aggrieved by that award, the claimants have filed the present appeal for enhancement.

3. The learned counsel appearing for the claimants submitted that the Tribunal awarded a very low and meagre sum of compensation. Further, the Tribunal ought to have awarded compensation as claimed by the claimants and the Tribunal has not considered the relevant materials and also not followed the principles of assessment before passing the award. Therefore, the award passed by the Tribunal is not in accordance with law and it is a fit case for enhancement.

4. The Learned counsel appearing for the third respondent insurance company submitted that the Tribunal has considered all the facts and circumstances of the case and awarded a just, fair and reasonable compensation is based on valid materials and evidence. It is a question of fact and it is not a perverse order. Therefore, the award passed by the Tribunal is in accordance with law and the same should be confirmed.

5. Heard the counsel. On the side of the claimant, P.Ws.1 to 3 were examined and documents Exs.P1 to P22 were marked. On the side of the third respondent insurance company, no one was examined and no document was marked to substantiate their claim. P.W.1 is the wife of the deceased. P.W.2 is one Ponnuswamy, who is the eye witness to the accident. P.W.3 is one Palaniswamy, who is the co-employee of the deceased. Ex.P1 is the policy copy of the Tractor, Ex.P2 dated 05.06.2003 is the legal heir certificate, Ex.P3 dated 23.01.2002 is the copy of the sale deed, Ex.P4 dated 14.06.1990 is the copy of the sale deed, Ex.P5 dated 02.06.1988 is the copy of the settlement deed, Ex.P6 dated 29.09.1964 is the copy of the sale deed in the name of Ramaswamy Gounder, Ex.P7 dated 03.03.1998 is the letter from Erode District Trading Centre to Chengappalli branch, Bank of India, Ex.P8 dated 03.12.1969 is the copy of the sale deed in the name of Ramaswamy gounder, Ex.P9 dated 10.12.1964 is the copy of the sale deed in the name of Ramaswamy gounder, Ex.P10 dated 27.12.1996 is the temporary certificate given by District Trading Centre, Ex.P11 dated 04.05.1998 is the certificate given by District Trading Centre, Ex.P12 is the voters identity card, EX.P13 is the driving licence, Ex.P14 dated 17.05.2003 is the copy of the FIR, Ex.P15 dated 17.05.2003 is the copy of the model diagram, Ex.P16 dated 17.05.2003 is the copy of the observa