Married daughters are entitled to compensation under the Motor Vehicles Act regardless of financial dependency, and salary components like allowances must be included in the income assessment for compensation, with future prospects and correct personal expenditure deductions applied based on the number of dependents.

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SUDEEPTI SHARMA J.

1. The present appeal has been preferred against the award dated 02.04.2016 passed by the learned Motor Accident Claims Tribunal, Chandigarh in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 (for short, 'the Tribunal’) for enhancement of compensation granted to the claimants/appellants to the tune of Rs.29,98,167/- along with interest @ 7.5% per annum, on account of death of Ranjit Ram Singh in a Motor Vehicular Accident, occurred on 25.03.2014.

2. As sole issue for determination in the present appeal is confined to quantum of compensation awarded by the learned Tribunal, a detailed narration of the facts of the case is not required to be reproduced here for the sake of brevity.

SUBMISSIONS OF LEARNED COUNSEL FOR THE PARTIES

3. The learned counsel for the claimants-appellants contends that the amount assessed by the learned Tribunal is on the lower side and deserves to be enhanced. Therefore, he prays that the present appeal be allowed and compensation be enhanced as per latest law.

4. Per contra, learned counsel for respondent No. 3-Insurance Company however, vehemently argues that the amount awarded to the claimants is on the higher side. He further contends that the learned Tribunal has erred in law in assessing the income of the deceased.

5. He further submits that respondent No. 3-Insurance Company has filed separate appeal FAO No. 3957-2016 titled as National Insurance Co. Ltd vs. Raj Kumari and others, challenging the quantum of compensation awarded to the claimants by the learned Tribunal. Therefore, he prays for dismissal of the appeal and compensation be reduced as per latest law.

6. I have heard learned counsel for the parties and perused the whole record of this case.

SETTLED LAW ON COMPENSATION

7. Hon’ble Supreme Court in the case of Sarla Verma Vs. Delhi Transport Corporation and Another [(2009) 6 Supreme Court Cases 121], laid down the law on assessment of compensation and the relevant paras of the same are as under:-

“30. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardised deductions. Having a considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one-third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six.

31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother