In motor vehicle accident claims involving the death of a minor, compensation is determined using notional income and a suitable multiplier. Furthermore, as the Motor Vehicles Act is beneficial legislation, courts are empowered to award compensation exceeding the amount claimed by the claimants.

JUDGMENT

This appeal is filed by the appellant/Insurance Company challenging the award and decree dated 07.08.2013 passed in O.P.No.356 of 2009 by the Chairman, Motor Accident Claims Tribunal-cum-VIII Additional District Judge, at Nizamabad (for short “the Tribunal”), wherein the Tribunal granted total compensation of Rs.1,50,000/- with interest @ 7.5% per annum from the date of petition till the date of realization for the death of one minor girl viz., Voddi Ganga (hereinafter referred to as “the deceased”) in a motor vehicle accident.

2. Heard the submissions of learned counsel for both sides and perused the record.

3. The learned Standing Counsel for the appellant/Insurance Company contended that the Tribunal erred in fastening the liability on the Insurance Company and that the quantum of compensation awarded is excessive. It is further contended that the Tribunal failed to appreciate that the driver of the tractor did not possess a valid driving license at the time of the accident.

4. On the other hand, learned counsel for the respondent Nos.1 and 2/claimants, by placing reliance on the judgment of the Hon’ble Supreme Court in Kishan Gopal and another vs. Lala and others , 2014 (1) SCC 244 contended that the compensation awarded by the Tribunal is very meager for the death of a 5-year-old child and that the claimants are also entitled to conventional heads as per settled law.

5. As seen from the material placed on record, the accident occurred on 13.01.2009 when the deceased, a 5-year-old student, was playing in front of the house. The offending Tractor vehicle driven in a rash and negligent manner, dashed against her, resulting in her instantaneous death on the spot due to a head injury. The Tribunal, based on the evidence of PW-2 (an eyewitness) and the police record i.e, FIR No.10/2009 and Charge Sheet, rightly concluded that the accident was occurred due to the rash and negligent driving by the driver of tractor.

6. Insofar as the quantum of compensation is concerned, the appellants relied on Kishan Gopal v. Lala's case (supra), wherein the Hon’ble Supreme Court held that in the case of the death of a minor child, it is appropriate to take the notional income and apply a suitable multiplier to arrive at a just compensation. Applying the said principles to the case on hand, considering the deceased was 5 years old at the time of the accident, the loss of dependency is calculated based on a notional income of Rs.30,000/- per annum. Applying a multiplier of ‘15’ as per settled law, the loss of dependency comes to Rs.4,50,000/-. Further, the claimants are also entitled for compensation for filial consortium of Rs.80,000/- i.e, @ Rs.40,000/- each to the parents; Rs.15,000/- towards Funeral expenses; Rs.15,000/- towards Loss of Estate and Rs.5,000/- towards transportation expenses. Thus, the total compensation comes to Rs.5,65,000/- (Rs.4,50,000/- + Rs.1,15,000/-).

7. At this stage, learned Standing Counsel for the Insurance Company contended that the claimants had sought only Rs.2,50,000/- and therefore compensation cannot exceed the amount claimed. However, in view of the judgments of the Hon’ble Supreme Court in Laxman @ Laxman Mourya Vs. Divisional Manager, Oriental Insurance Company Limited and another , (2011) 10 SCC 756 and Nagappa Vs. Gurudayal Singh , 2003 ACJ 12 (SC), and considering that the Motor Vehicles Act is a beneficial legislation intended to ensure just and fair compensation, the Courts are empowered to award compensation in excess of the amount claimed. Henc