R.V.RAVEENDRAN, LOKESHWAR SINGH PANTA
Sarla Verma – Appellant
Versus
Delhi Transport Corporation – Respondent
To calculate the quantum of compensation in a motor accident claim, follow these well-established steps:
Determine the Actual Income of the Deceased: Start with the actual income at the time of death, after deducting taxes if applicable. If future prospects are to be considered, estimate the increased income due to career growth or pay revisions, typically adding a percentage (e.g., 50%) for stable jobs below a certain age.
Estimate Future Prospects: Incorporate reasonable future income growth based on the stability of employment and age of the deceased. This involves averaging the current income with projected future income, considering pay revisions or increments, if supported by evidence.
Deduct Personal and Living Expenses: Deduct a standard percentage (commonly one-third for a married person or one-half for a bachelor) of the gross income to account for personal and living expenses. The percentage may vary depending on the number of dependents and the family structure.
Determine the Contribution to Dependents: The remaining amount after deductions represents the annual contribution to the dependents.
Select the Appropriate Multiplier: Choose a multiplier based on the age of the deceased at the time of death. The multiplier reflects the number of years' purchase and is usually derived from a standard table, with higher multipliers for younger deceased individuals.
Calculate Loss of Dependency: Multiply the annual contribution by the selected multiplier to arrive at the core compensation amount for dependency loss.
Add Conventional Heads: Include amounts for loss of estate, funeral expenses, and loss of consortium, if applicable.
Adjust for Past Awards and Finalize: Subtract any interim compensation already received and consider any statutory or case-specific adjustments to arrive at the final compensation amount.
It is important to note that actual future pay revisions should generally not be taken into account unless supported by concrete evidence, and the deductions for personal expenses are typically standardized but can vary based on family size and circumstances (!) (!) (!) (!) .
This systematic approach ensures a fair, consistent, and objective calculation of the compensation amount, aligning with established principles and legal standards (!) (!) (!) (!) (!) (!) .
ORDER
R.V. Raveendran, J.—
The claimants in a motor accident claim have filed this appeal by special leave seeking increase in compensation.
2. One Rajinder Prakash died on account of injuries sustained in a motor accident which occurred on 18.4.1988 involving a bus bearing No.DLP 829 belonging to the Delhi Transport Corporation. At the time of the accident and untimely death, the deceased was aged 38 years, and was working as a Scientist in the Indian Council of Agricultural Research (ICAR) on a monthly salary of Rs.3402/- and other benefits. His widow, three minor children, parents and grandfather (who is no more) filed a claim for Rs.16 lakhs before the Motor Accidents Claims Tribunal, New Delhi. An officer of ICAR, examined as PW-4, gave evidence that the age of retirement in the service of ICAR was 60 years and the salary received by the deceased at the time of his death was Rs.4004/- per month.
3. The Tribunal by its judgment and award dated 6.8.1993 allowed the claim in part. The Tribunal calculated the compensation by taking the monthly salary of the deceased as Rs.340
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