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2026 Supreme(Online)(AP) 19765

HIGH COURT OF ANDHRA PRADESH
V.Sujatha, J
United India Insurance Company Ltd. – Appellant
Versus
D Sumathi – Respondent
MACMA NO. 313 OF 2023



Advocates:
For the Appellants/Petitioners: A Jayanthi
For the Respondents: C Jhansi Rani

For a deceased victim aged between 50 and 60 years, the addition for future prospects in calculating dependency compensation is limited to 10% of the established income, and the appropriate multiplier to be applied is 9.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166(1)(c) - Motor accident - Quantum of compensation - Age of deceased 56 years - Addition for future prospects - Tribunal added 40% instead of 10% - Held, for persons aged between 50 and 60, as per settled law, future prospects to be added is 10% - Application of multiplier - Correct multiplier for age 56-60 years is 9 - Award modified.

Facts of the case:
The deceased sustained injuries in a motor vehicle accident involving a lorry and later succumbed to injuries. The Tribunal awarded compensation of Rs.22,10,928/-. The Insurance Company appealed, challenging the assessment of income, the percentage of future prospects added to the income, and the overall quantum.

Findings of Court:
The Court confirmed the monthly income of the deceased as Rs.20,000/- based on salary certificate. It corrected the future prospects addition to 10% instead of 40% and applied the correct multiplier of 9. The compensation was reduced from Rs.22,10,928/- to Rs.17,79,000/-.

Issues: Whether the Tribunal erred in calculating future prospects and applying the multiplier based on the age of the deceased.

Ratio Decidendi: In accordance with established Apex Court precedents, the addition for future prospects for a deceased person aged between 50 and 60 is 10%, and the appropriate multiplier for the 56-60 age group is 9.

Result: Appeal allowed; compensation reduced.

Table of Content
1. summary of facts, pleadings, and framing of issues. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. appellate scope and determination of need for interference. (Para 7 , 8 , 9 , 10)
3. evidence assessment of negligence and income. (Para 11 , 12 , 13)
4. calculation of dependency compensation, future prospects, and multiplier application. (Para 14 , 15 , 16 , 17 , 18 , 19)

MOTOR ACCIDENT CIVIL MISCELLANEOUS APPEAL NO: 313/2023

JUDGMENT:

1. This Motor Accident Claims Miscellaneous Appeal (for short MACMA) has been preferred by the Appellant/3rd respondent – M/s. United India Insurance Company Limited, represented by its Authorized Signatory, C/o. Divisional Office, Madhurai, Tamilnadu, being aggrieved by the Order/Award and Decree passed by the Chairman, Motor Accident Claims Tribunal (for short MACT) –cum- VIII Additional District Judge, Chittoor, in M.V.O.P.No.22 of 2017 dated 17.10.2022 awarding an amount of Rs.22,10,928/- as compensation, as against the claim of Rs.30,00,000/-.

For the sake of convenience the parties herein after are referred to as they were arrayed before the Tribunal.

2. The 1st petitioner being wife, 2nd and 3rd petitioners being sons of D.Thulasi Naidu (hereinafter referred to as the ‘deceased’) filed claim petition in M.V.O.P.No.22 of 2017 under section 166(1)(c) of the Motor Vehicles Act, initially, claiming compensation of Rs.20,00,000/-, later enhanced to Rs.30,00,000/- as per orders in I.A.No.139 of 2019 dated 28.03.2019, together with interest and costs, for the death of the deceased – D.Thulasi Naidu, in a motor vehicle accident.

3. Brief averments of the claim petition in MVOP No.22 of 2017 are that: the deceased D.Thulasi Naidu was healthy and energetic person, aged about 55 years as on the date of accident, having landed property over an extent of Ac.3.00 both dry and wet lands, deriving an annual income of Rs.3,00,000/-. He was also working as Supervisor in VCN Solid Blocks, Chellamambapuram, B.N Kandriya Mandal, Sri Kalahasti, and earning Rs.20,000/- per month. He was also working as milk collection agent of Heritage Foods Limited in the morning and evening and earning Rs.10,000/- per month. He was contributing his entire income towards the welfare and development of the petitioners and all are depending upon the deceased.

i. On 08.08.2016 the deceased D.Thulasi Naidu, went for personal work on his motor cycle bearing No.AP-03-AH-4809. After completion of personal work, deceased was returning to his house on the same motor cycle. While on the way, at about 2.00 p.m., opposite to Vinayaka Granites on Chittoor - Vellore road, Chittoor, 1st Respondent/driver of the lorry drove the lorry in a rash and negligent manner from Vellore side, without due care and caution and hit back side of the motor cycle, as a result, the deceased fell down along with his motor cycle on the road and sustained bleeding injuries to head and multiple injuries on body. Immediately, neighbours - K.V. Kumar and others came there and shifted the deceased to Government Hospital, Chittoor, in 108 Ambulance and got admitted for treatment. Later, as per the advice of the Doctors, the deceased was shifted to CMC Hospital, Vellore, for better treatment and later shifted to SRM Hospital, Chengalpattu, but the deceased succumbed to his injuries on 16.08.2016 at SRM Hospital, Chengalpattu, Tamilnadu.

ii. On a complaint given by R.M.Srihar, a case in Cr.No.76/2016 for the offence punishable under section 304A of IPCs registered in Chittoor Traffic Police station against 1st Respondent/driver and laid charge sheet in C.C.No.304/2016 before the Additional Judicial Magistrate of I Class, Chittoor.

iv. Due to sudden death of the deceased, 1st petitioner has lost her beloved husband and petitioners 2 and 3 have lost their beloved father.

v. The accident occurred due to the rash and negligent driving of the 1st respondent /driver of the lorry bearing No.TN-34-M-9699 belonged to the 2nd respondent during the course of his employment while d

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