Calculation of pecuniary compensation in motor accident claims considering minimum wages, dependency, and application of the multiplier.

JUDGMENT :

1. This appeal has been filed by the claimants being aggrieved by award dated 11.2.2016 passed by learned Motor Accident Claims Tribunal/Additional District Judge, Court No. 10, Kanpur Nagar in MACP No. 1289 of 2014 on the ground of computation of the income of the deceased at Rs. 3000/-against established norms of minimum wages, in absence of established proof of income future prospects have not been awarded and under the conventional head only a sum of Rs. 15,000/-has been awarded which will be to the tune of Rs. 70,000/-,

2. It is fairly submitted that age of the deceased at the time of accident was 35-years, therefore, multiplier of 16 will be applicable and not of 17 as has been applied by the Claims Tribunal.

3. Sri Amit Singh, learned counsel for the Insurance Company submits that no interference is required in the impugned award.

4. After hearing counsel for the parties and going through the record, it is apparent that minimum wages for an unskilled labourer engaged in the work of automobile repair as notified by the State of Uttar Pradesh w.e.f. October, 2013 to March, 2014 was to the tune of Rs. 200/-per day or Rs. 6000/-per month. When this is taken into consideration then looking to the facts that there are 3 dependents on the deceased namely his wife and two children, 1/3rd deduction is to be made towards the amount presumed to have been spent by the deceased on self. Therefore, monthly dependency will come out to Rs. 4000/-per month on which when 40% is added towards future prospects in the light of law laid down in case of National Insurance Company Limited Vs. Pranay Sethi and others as reported in (2017) 16 Supreme Court Cases 680; then monthly dependency will come to Rs. 5600/-or Rs. 67,200/-per year. When multiplier of 16 is applied then total pecuniary compensation will come to Rs. 10,75,200/-. Over and above, which claimants are entitled to a sum of Rs. 70,000/-under the head of non pecuniary compensation taking total compensation to Rs. 11,45,200/-in place of compensation of Rs. 4,74,000/-awarded by the Claims Tribunal. Therefore, there will be enhancement to the tune of Rs. 6,71,200/-to which claimants will be entitled in addition to the amount awarded by the Claims Tribunal. This additional amount will also carry interest at the rate of 7% from the date of filing of the claim petition. It is directed that a sum of Rs. 6,50,000/-out of this additional amount be invested in the monthly recurring deposit scheme of Indian post office or in a scheduled Bank for a period of 5 years so that principal amount remains intact to be used in future. Claimants are entitled to accrued interest and use it for immediate need.

5. In above terms, the appeal is disposed of.