IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Alka Sarin, J.
Mahavir Singh & Anr - Appellants
Versus
Vinod Kumar & Ors - Respondents
FAO-5352 of 2012 (O&M)
Decided On : 19-01-2024
Compensation - Motor Accident Claims - The court discussed provisions related to compensation for motor accident claims, emphasizing the assessment of notional income, multiplier application, and additional compensation for loss of estate and consortium, leading to a modified award.
Fact of the Case:
The appeal was filed by the claimant-appellants challenging the compensation awarded for the death of a 10-year-old child in a motor accident, arguing that the amount was insufficient.
Finding of the Court:
The court found that the notional income of the deceased child should be assessed at Rs.50,000 per annum with a multiplier of 15, and additional compensation for loss of estate, funeral expenses, and loss of consortium was warranted.
Issues: Whether the compensation awarded by the Tribunal was adequate considering the age of the deceased and the applicable legal precedents.
Ratio Decidendi: The court applied the principles from relevant Supreme Court judgments to determine the appropriate compensation, including the assessment of notional income and the application of multipliers.
Result: The appeal is allowed, and the compensation is modified to Rs.6,99,000.
JUDGMENT :
ALKA SARIN, J.
1. The present appeal has been preferred by the claimant-appellants challenging the award dated 12.04.2012 passed by the Motor Accident Claims Tribunal, Sirsa. The appeal preferred by the owner of the vehicle being FAO No.5641 of 2012 has been allowed by an order of even date.
2. Since the facts, as recorded in the impugned award passed by the Tribunal, are not in dispute, the same are not being reproduced herein for the sake of brevity.
3. Learned counsel for the claimant-appellants would contend that the deceased in the present case was a 10 years’ old child and a lump-sum amount of Rs.3,70,000/- has been awarded along with interest @ 9%. The learned counsel would further contend that the said amount is on the lower side. The learned counsel has relied upon the judgment of the Hon’ble Supreme Court in the case of Kishan Gopal & Anr. Vs. Lala & Ors. [2013 (4) RCR (Civil) 276] wherein the notional income of a 10 years’ old child was assessed as Rs.30,000/- per annum. The learned counsel has also relied upon the judgments of the Hon’ble Supreme Court in the cases of Sarla Verma Vs. Delhi Transport Corporation [2009 (3) RCR (Civil) 77]; National Insurance Co. Ltd. Vs. Pranay Sethi and Ors. [2017 (16) SCC 680]; Reshma Kumari & Ors. Vs. Madan Mohan & Anr. [2013 (9) SCC 65]; and Magma General Insurance Co. Ltd Vs. Nanu Ram alias Chuhru Ram & Ors. [2018 (4) RCR (Civil) 333].
4. Per contra, the learned counsel for respondent No.3-Insurance Company has vehemently argued that sufficient amount has already been awarded as compensation in the present case and that there is no scope of any enhancement.
5. Heard.
6. In the case of Kishan Gopal (supra), the accident had taken place in the year 1992 and in the present case the accident took place in the year 2010. In view thereof, this Court deems it appropriate to take the notional income of the deceased child as Rs.50,000/- per annum and apply a multiplier of ‘15’. However, no future prospects are to be added in the present case as per the judgment in the case of Kishan Gopal (supra). Further, as per the judgments of the Hon’ble Supreme Court in the cases of Pranay Sethi (supra), Magma General Insurance Company Limited (supra) and N. Jayasree (supra), the claimant-appellants would be entitled to Rs.18,000/- (Rs.15,000+20% increase) towards loss of estate and Rs.18,000/- (Rs.15,000+20% increase) towards funeral expenses and the claimant-appellants (parents) would also be entitled to Rs.48,000/- each (Rs.40,000+20% increase) towards loss of consortium.
7. Accordingly, the reworked compensation is as under :
| Sr. No. | Heads | Compensation Awarded |
| 1 | Annual Income | Rs.50,000/- |
| 2 | Multiplier of 15 | [Rs.50,000 x 15] = Rs.5,67,000/- |
| 3 | Loss of estate | Rs.18,000/- |
| 4 | Funeral expenses | Rs.18,000/- |
| 5 | Loss of Consortium : | |
| (i) Filial | Rs.96,000/- (Rs.48,000x2) | |
|
| Total Compensation | Rs.6,99,000/- |
8. The amount in excess of and over and above the amount awarded by the Tribunal shall also attract interest @ 9% per annum from the date of filing of the claim petition till the realization of the entire amount. The amount shall be apportioned between the claimant-appellants in equal shares.
9. In view of the above discussion, the present appeal is allowed and the award passed by the Tribunal is modified accordingly. Pending applications, if any, also stand disposed off.
Kishan Gopal & Anr. Vs. Lala & Ors.
Sarla Verma Vs. Delhi Transport Corporation
National Insurance Co. Ltd. Vs. Pranay Sethi and Ors.
Reshma Kumari & Ors. Vs. Madan Mohan & Anr.
Magma General Insurance Co. Ltd Vs. Nanu Ram alias Chuhru Ram & Ors.
AI
The court established that compensation for a minor's death in a motor accident should consider notional income, multipliers, and additional allowances for loss of estate and consortium.
The court established that the notional income for a non-earning child should be set at Rs.30,000 per annum, applying a multiplier of 15 for calculating compensation, considering inflation and emotio....
The main legal point established in the judgment is the application of legal principles under the Motor Vehicles Act 1988, particularly Section 163A, to determine compensation for the death of a chil....
The court established that compensation for minors must reflect notional income and apply appropriate multipliers, ensuring just compensation for loss of dependency.
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