Accurate calculation of compensation for loss of dependency by factoring future prospects is imperative in claims under the Motor Vehicles Act.

JUDGMENT

The appellant had filed this appeal to enhance the award dated

21.11.2022 in M.C.O.P.No.6823 of 2018 on the file of the Motor Accident Claims Tribunal, VI Judge, Small Causes, Chennai. .

2. The brief facts of the case of the appellant/claimant is as follows: On 08.09.2018 at about 17.10 hours when the deceased was travelling as a pillion rider in a motor cycle bearing Reg.No. TN-05-BS- 6529, the rider of the said two wheeler dashed against the Kodaimara Salai House, as a result of which the deceased sustained grievous injuries and succumbed to the injuries. Hence, the wife of the deceased filed a claim petition before the Tribunal seeking compensation for a sum of Rs.15,00,000/-.

3. Upon considering the oral and documentary evidence, the Tribunal partly allowed the claim petition and awarded a sum of Rs.23,38,000/- as compensation, directed the second respondent to pay the said amount to the appellant along with interest at the rate of 7.5% per annum from the date of petition till the date of realisation.

4. Aggrieved by the quantum of compensation awarded by the Tribunal, the appellant (claimant) had filed the present appeal under Section 173 of the Motor Vehicles Act, 1988.

5. The learned counsel for the appellant submitted that the Tribunal erred in awarding Rs.25,000/- as monthly income of the deceased as he was earning Rs.15,000/- per month at the time of accident. Hence prays to enhance the compensation by allowing this petition.

6. On the other hand, the learned counsel appearing for the second respondent contended that the award passed by the Tribunal is based on well-settled principles of law applicable at the time of the order, and therefore, it need not be interfered.

7. Heard both sides and perused the materials available on record.

8. On An analysis of the award of the Tribunal would go to show that the Tribunal has awarded Rs.22,68,000/- towards loss of dependency;

Rs.40,000/- towards loss of consortium; Rs.15,000/- towards loss of estate; Rs.15,000/- towards funeral expenses.

9. Considering the occupation of the deceased and his bank statement, it would be just and appropriate to fix Rs.16,000/- as his monthly income As per the decision rendered in the case of National Insurance Co. vs Pranay sethi and others, reported in 2017 (2) TNMAC 601 40% is to be added towards future prospects of the deceased. As per the Judgment passed by this Court on 10.01.2013 in C.M.A.No.114 of 2013 reported in 2013(2) TN MAC 851 1/3^rd of the income ought to have deducted for the purpose of computing the dependency compensation, where as the Tribunal has deducted ½ of the income. Hence, the method adopted in the above Judgment is taken into considertation.

Calculation Notional Income = Rs.16,000/-

40% Future Prospects = 16,000 + 6,400 = 22,400/-

After 1/3^rd deduction = 22,400 – 7,467 = Rs.14,933/-

Loss of dependency = Rs.14,933 x 12 x 18 = Rs.32,25,528/-. The compensation awarded under the other heads are reasonable and does not require interference of this Court. 10. The following tabular column sets out the amounts awarded by the Tribunal and the enhanced amounts awarded by this Court under various heads:

Thus, the compensation awarded by the Tribunal is enhanced from Rs.23,38,000/- to Rs.32,95,528/-, which shall carry interest at the rate of

7.5% per annum.

11. In the result:

i. The Civil Miscellaneous Appeal is partly allowed. There shall be no order as to costs.

i