Compensation in fatal motor accidents is determined by including all family-benefiting allowances in income, applying a 40% future prospect for fixed salaries under 40, deducting personal expenses based on the number of dependents, and using a multiplier corresponding to the deceased's age.

PRATEEK JALAN, J (ORAL)

1. These cross-appeals arise out of an award dated 03.03.2013, passed by the Motor Accident Claims Tribunal [“the Tribunal”] in Suit No. 41/2012.

2. The proceedings before the Tribunal arose from a motor accident which occurred on 20.11.2011 at about 5:45 a.m. near Ghitorni Village on the Mehrauli-Gurgaon Road, New Delhi. At the relevant time, Mr. Ravi Shankar was riding a motorcycle bearing Registration No. DL-3S-BN-8388, with Mr. Ram Sunder Mishra travelling as a pillion rider. The motorcycle was hit from behind by a Mahindra Xylo car bearing Registration No. DL-1YC-0433, as a result of which both riders were thrown off the motorcycle, and landed at some distance.

3. As a consequence of the accident, Mr. Ram Sunder Mishra suffered grievous injuries, and was immediately taken to the Trauma Centre, All India Institute of Medical Sciences, where he was declared dead. In relation to the said accident, FIR No. 251/2011 was registered at PS: Fatehpur Beri against the driver of the offending Mahindra Xylo, who has been arrayed as respondent No. 3 in the present appeals, and a charge-sheet was subsequently filed against him.

4. A composite claim petition was thereafter instituted before the Tribunal by Mr. Ravi Shankar, as the injured claimant, alongwith the father and brother of the deceased, Mr. Ram Sunder Mishra, seeking compensation on account of the injuries sustained, and the death caused in the accident.

5. The Tribunal returned a finding that the accident had occurred due to the rash and negligent driving of the Mahindra Xylo car by its driver [respondent No.3 herein]. The said finding of negligence has not been assailed in the present appeals.

6. By the impugned award, the Tribunal awarded compensation of Rs. 12,92,100/-, alongwith interest at the rate of 9% per annum, in respect of the death of Mr. Ram Sunder Mishra, and a sum of Rs. 10,000/- in favour of the injured claimant, Mr. Ravi Shankar. These appeals are only with respect to the first of these two awards.

7. The Tribunal awarded compensation to the legal representatives of the deceased under the following heads:

8. I have heard Ms. Shruti Jain, learned counsel for appellant – National Insurance Company Ltd. [“Insurance Company”] in MAC.APP. No. 708/2013, and Mr. Vineet Tayal, learned counsel for respondent Nos. 1 and 2 in MAC.APP. No. 708/2013.

9. Learned counsel have confined their submissions in the present cross-appeals to the question of the quantum of compensation awarded by the Tribunal. They have advanced the following submissions:

a) Ms. Jain submits that the Tribunal computed the loss of dependency on the basis that the deceased was earning a monthly income of Rs. 12,597/-, as reflected in the salary slip placed on record, without deduction of expenses and allowances.

b) As far as loss of future income is concerned, Ms. Jain also submits that future prospects have been granted at the rate of 50%. However, in terms of the law laid down by the Constitution Bench of the Supreme Court in National Insurance Co. L