Compensation assessment principles in motor vehicle accidents clarified, including future prospects and conventional heads.

1. Leave granted.

2. This order shall dispose of two appeals arising out of the same accident against a judgment and order dated 25.10.2017 passed by the High Court of Punjab and Haryana at Chandigarh.

3. In a motor vehicle accident, a motor cycle driven by Afsar Ali, whose pillion rider was Kabil, met with an accident with car No. PB 10 - AB 5351 on 5.7.2001. Afsar Ali suffered multiple injuries and lost his life. Kabil also suffered serious injuries, became quadriplegic and died on 15.8.2002.

4. Kabil had filed application seeking compensation for the injuries received in the accident. But after his death, the legal representatives moved an application for amendment of the claim application but such amendment was declined by the Motor Accidents Claims Tribunal, Karnal. The MACT granted compensation of payment of the medical expenses. It is thereafter in appeal the High Court enhanced the compensation to Rs. 2,00,000 on account of the injuries received by Kabil, holding that the appellants have not proved that death was on account of injuries received.

5. Before this court, the learned counsel appearing for the appellants, legal heirs of Afsar Ali, argued that the income of the deceased was assessed as a daily wager at Rs. 2,400 per month. The High Court has enhanced the compensation by applying multiplier of 17 instead of 11 applied by the Tribunal. The High Court assessed the compensation as Rs. 4,76,400 including compensation under the conventional heads.

6. It is argued that in view of the judgment of this court in National Insurance Co. Ltd. v. Pranay Sethi , 2017 ACJ 2700 (SC), the claimants are entitled to future prospects on account of death of Afsar Ali. In Pranay Sethi, this court found reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses as Rs. 15,000, Rs. 40,000 and Rs. 15,000 respectively. This court did not approve the compensation towards loss of care and guidance to minor children as granted in a judgment reported as Rajesh v. Rajbir Singh , 2013 ACJ 1403 (SC). Therefore, the grant of compensation on account of loss of love and affection is not the one which is contemplated by the Constitution Bench. The re - visit of such amount was suggested every three years at the rate of 10 per cent. However, in the present case, the accident had taken place in the year 2001, therefore, we follow the principles laid down in Pranay Sethi to grant compensation under the conventional heads. Thus the compensation assessed is as under:

7. Thus, the compensation payable shall be Rs. 5,66,960 in case of Afsar Ali.

8. In respect of the claim on account of injuries suffered by Kabil, the compensation was increased to Rs. 2,00,000 and interest at the rate of 6 per cent was awarded on the enhanced amount of compensation by the High Court. Kabil had received serious injuries in the accident and was on bed being a quadriplegic patient. The death was on account of injuries suffered by him. The MACT erred in law to decline amendment of the claim petition. Dr. Vijay Gupta appearing as PW 4 stated that the injured was admitted in his hospital for more than 3 months and remained under treatment for a very long time. He had developed quadriplegia. A person who is confined to bed and suffering from quadriplegia, the death on 15.8.2002 cannot be for any other reason but on account of injuries suffered by him. The High Court noticed the statement of PW 4 but still failed to return finding that death was on account of injuries received by Kabil.

9. The deceased was 28 years of age and could earn Rs. 2,400 as daily wager. The compensation payable to legal heirs of Ka