In motor vehicle accident claims involving the death of a self-employed individual where actual income is not proven, the Court must adopt the notional income prescribed by the State Legal Services Authority and incorporate 40% towards future prospects in the calculation of loss of dependency.

THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 24.03.2022 PASSED IN MVC NO.515/2020 ON THE FILE OF THE ADDITIONAL SENIOR CIVIL JUDGE, ADDITIONAL MACT, UDUPI, PARTLY ALLOWING THE CLAIM PETITION FOR COMPENSATION AND SEEKING ENHANCEMENT OF COMPENSATION.

THIS APPEAL, COMING ON FOR FURTHER ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE RAJESH RAI K

ORAL JUDGMENT

1. The appeal is filed seeking for enhancement of compensation.

2. It is not in dispute that, as a result of the motor vehicle accident which occurred on 24.04.2020, Sri Kiran, a 27 year old died.

3. It is not in dispute that the Insurer is liable to pay the compensation and recover the same from the owner of the offending vehicle.

4. The Tribunal, on assessment of the evidence adduced before it, has come to the conclusion that the driver of the offending vehicle was responsible for the accident which has resulted in the death of Kiran. The Tribunal has thereafter proceeded to award the following sums as compensation:

5. In order to arrive at the loss of dependency, the Tribunal has determined the monthly income, notionally at Rs.12,000/-. As there is no credible evidence to ascertain the actual monthly income, it would be appropriate and prudent to adopt the monthly income determined by Karnataka State Legal Services Authority, which, for the accident of the year 2020, would be Rs.14,500/-.

6. Since the deceased was aged 27 years and was self-employed, 40% requires to be added to the monthly income towards future prospects, which would result in the income to be Rs.20,300/-.

7. If 1/2 is deducted towards personal expenses, his monthly income would be Rs.10,150/- (20,300 - 1/2). The income of the deceased for the purposes of determining the loss of dependency would thus be Rs.10,150/-.

8. As the deceased was aged 27 years, a multiplier of '17' would have to be applied.

9. Consequently, the claimants would be entitled to a sum of Rs.20,70,600/- (10,150 x 12 x 17) towards “loss of dependency”.

10. The claimants being the parents and brothers of the deceased, they would each be entitled to a sum of Rs.48,400/- towards “loss of consortium” i.e., in all Rs.1,93,600/- (48,400 x 4) and they would also be entitled to a sum of Rs.36,300/- under the “conventional heads”.

11. Thus, the claimants, in modification of the impugned award, would be entitled to the following sums:

12. Thus, the claimants would be entitled for compensation of Rs.23,00,500/- as against Rs.19,03,600/- awarded by the Tribunal, along with interest at the rate of 6% per annum from the date of petition till its realization.

13. The Insurance Company is directed to deposit the amount of compensation awarded within a period of six weeks from the date of receipt of a certified copy of this judgment.

14. The apportionment of compensation amount shall be in terms of the award of the Tribunal.

The appeal is accordingly allowed in part.