IN THE HIGH COURT OF JUDICATURE AT MADRAS
R. SAKTHIVEL, J.
M/s.United India Insurance Co. Ltd - Appellant
Versus
R. Anjamani & Ors. - Respondents
CMA No. 371 of 2022 and CMP No. 2571 of 2022
Decided On : 26-06-2024
Motor Vehicles - Compensation - Motor Vehicles Act, 1988, Section 173 - The court modified the compensation awarded by the Tribunal, correcting the notional income and applying the principles from the Supreme Court's ruling on future prospects and consortium.
Fact of the Case:
The petitioners' son died in a motorcycle accident due to negligent riding. They sought compensation of Rs.75,00,000, but the Tribunal awarded Rs.19,50,000 based on a notional income of Rs.10,000, which the Insurance Company contested.
Finding of the Court:
The court upheld the Tribunal's finding on negligence but modified the compensation amount, correcting the notional income and applying the correct percentage for future prospects and filial consortium.
Issues: Whether the Tribunal's award of compensation was appropriate, particularly regarding the notional income and the amounts awarded for loss of love and affection and filial consortium.
Ratio Decidendi: The court determined that the notional income should be Rs.10,000, future prospects should be 40%, and the amounts for loss of love and affection and filial consortium should be adjusted according to established legal principles.
Result: The appeal was partly allowed, reducing the compensation from Rs.19,50,000 to Rs.16,52,000.
JUDGMENT :
R. Sakthivel, J.
[PRAYER: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, praying to set aside the award and decree dated 10.01.2020 made in M.C.O.P.No.7316 of 2016 on the file of the Motor Accidents Claims Tribunal, II Court of Small Causes, Chennai.]
Feeling aggrieved with the Award passed by the 'Motor Accident Claims Tribunal (II Court of Small Causes), Chennai' [henceforth 'Tribunal' for brevity] in M.C.O.P.No.7316 of 2016, the second respondent / Insurance Company has preferred this Civil Miscellaneous Appeal.
2. For the sake of convenience, the parties will hereinafter referred to as per their rank in the Motor Claim Original Petition.
3. The case of the petitioners is that on September 27, 2016 at about 12.30 hours, the petitioners' son R.Babu was travelling as a pillion rider on the Motorcycle bearing Registration No.TN05-BC-6010 from Chennai towards Tada at NH-16 Road. While nearing Akkampet Village, due to the rash and negligent riding of the rider of the Motorcycle, the petitioners' son fell off the bike onto the road. Due to the accident, the petitioners son sustained severe head injuries and immediately, he was admitted in Global Hospital and then referred to Rajiv Gandhi Government General Hospital, Chennai for further treatment where he succumbed to the injuries on the same day viz., September 27, 2016. At the time of the accident, the petitioners' son was working as a Computer Operator in a Private concern. Hence, the petitioners filed a Motor Claim Original Petition before the Tribunal seeking compensation for a sum of Rs.75,00,000/- (Rupees Seventy Five Lakh Only). The first respondent is the owner of the vehicle. The first respondent's vehicle was insured with the second respondent. Hence, the petitioners seek compensation against both respondents.
4. The first respondent - owner of the vehicle remained ex-parte before the Tribunal.
5. The second respondent/Insurance Company filed a counter whereby, it denied the age, occupation and monthly income of the deceased. Further, the second respondent / Insurance Company denied the manner of the accident.
6. At trial, on the side of the petitioners, the first petitioner was examined as P.W.1 and one Mr. Mageshkumar, was examined as P.W.2 and Ex-P.1 to Ex-P.12 were marked. On the side of the second respondent, one Mr. Senthilvel was examined as R.W.1 and Ex-R.1 to Ex-R.3 were marked.
7. After hearing both sides, the Tribunal came to the conclusion that the accident occurred due to the rash and negligent riding of the rider of the first respondent. The Tribunal further held that though the petitioners have stated that their son / deceased earned a sum of Rs.15,000/- per month as salary, they have not produced any documents to substantiate their claim. Hence, the Tribunal fixed a sum of Rs.10,000/- as notional income of the petitioners son / deceased R.Babu. At the time of accident, the petitioners' son was a Bachelor. Hence, the Tribunal awarded a sum of Rs.19,50,000/- as compensation under various heads as tabulated hereunder :
| Sl. No. | Head | Amount |
| 1. | Loss of Dependency | Rs.16,20,000.00 |
| 2. | Loss of Love and Affection | Rs.1,00,000.00 |
| 3. | Filial Consortium | Rs.2,00,000.00 |
| 4. | Medical Expenses | Rs.15,000.00 |
| 5. | Funeral Expenses | Rs.15,000.00 |
|
| Total | Rs.19,50,000.00 |
8. Challenging the quantum of compensation, the second respondent / Insurance Company has preferred this Civil Miscellaneous Appeal.
9. Learned counsel for the appellant / Insurance Company submits that at the time of accident, the deceased was 18 years old. The petitioners have not produced any documents to show that their son R. Babu / deceased was working as a Computer Operator. Under such circumstances, fixing a sum of Rs.10,000/- as notional income is erroneous. Further, the Tribunal awarded a sum of Rs.1,00,000/- under the head 'loss of love and affection' an
National Insurance Company Limited vs. Pranay Sethi & Others
The court clarified the application of notional income and future prospects in compensation calculations, aligning with Supreme Court precedents.
The burden of proof in negligence cases, admissibility of medical and police records, and principles for calculating compensation under the Motor Vehicles Act.
The court established that accurate assessment of income and dependency is crucial in determining compensation in motor accident claims.
Compensation in motor accident claims should reflect just and reasonable expectations based on established legal criteria, including income calculations and contributory negligence.
Fatal accident – It is appropriate to take notional income of child victim at Rs.25,000/- per annum, taking into account inflation, devaluation of rupee and cost of living.
The court established that dependents of a deceased in a motor vehicle accident are entitled to compensation for loss of love and affection, alongside proper assessment of notional income.
The main legal point established in the judgment is the interpretation and application of legal provisions and judgments related to compensation for accidents under the Motor Vehicles Act.
The court adjusted the compensation for death in a motor accident, emphasizing proper income calculations and dependency, aligning with established legal principles.
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