IMPORTANT POINT
Death in motor accident – Adequate compensation is considered to be fair and equitable compensation – Courts shoulder responsibility of deciding adequate compensation on a case-to-case basis.

JUDGMENT :

Surya Kant, J.

1. Leave granted.

2. The present appeal arises out of the judgment dated 23.07.2019 passed by the High Court of Kerala, in an appeal preferred by the Respondent (hereinafter, “Insurance Company”) against the award dated 26.07.2018 of the Motor Vehicle Accidents Claims Tribunal, Pala (hereinafter, “Tribunal”). The High Court allowed the appeal and has reduced the compensation amount of Rs. 32,39,000/- granted to the Appellants by the Tribunal to Rs. 19,70,000/-. The issue involved in the instant matter primarily relates to the determination of quantum of compensation awarded under various heads by the Tribunal and the High Court.

A. FACTUAL BACKGROUND :

3. On 21.02.2015, the dreams and aspirations of the 32-year-old Deceased (Sreekumar) shattered when he met with a fatal accident that occurred while he was riding his motorcycle bearing Registration No. KL-36-C-9198 through Thalayolaparambu to Ernakulam Road, Kerala. At the time of the accident, the offending car bearing Registration No. KL-07-BB-5053 was insured by the Respondent Insurance Company and was allegedly driven in a rash and negligent manner. The car came from the opposite direction and dashed into the motorcycle driven by the Deceased. As a result of the impact, Sreekumar fell and sustained serious injuries. Though concerted efforts were made to save the Deceased’s life, unfortunately, he succumbed to his injuries on the way to the hospital.

4. Swaddled in the grief of the untimely death of their breadwinner, Appellants approached the Tribunal seeking compensation for their loss. It may be noted that the first Appellant is the wife of the Deceased, the second Appellant is their minor son, and the third Appellant is the mother of the Deceased. Appellants jointly preferred a claim petition under section 166 of the Motor Vehicles Act, 1988 (hereinafter, “the Act”) seeking compensation of Rs. 64,15,000/- with interest. The Insurance Company confuted the claim contending that the accident occurred due to negligence of the Deceased. The amount of compensation claimed under various heads was also alleged to be excessive.

5. The Appellants stood their ground by stating that they were entitled to compensation for ‘loss of dependency’ as the Deceased was a self-employed man who donned multiple hats so as to provide a comfortable living for his family. According to the Appellants, the Deceased was a fish vendor-cum-driver and was earning at least Rs. 25,000/- per month. Appellants produced various documentary pieces of evidence before the Tribunal to prove the Deceased’s financial capacity while he was alive. These were – (i) a course certificate showing that the Deceased had completed two years course in electronic mechanic trade; (ii) a job training certificate at Sun Generic Cables Pvt. Ltd.; (iii) Passport of the Deceased indicating that he was employed in the Sultanate of Oman between 18.11.2007 and 17.11.2011; (iv) a certificate to show that the Deceased received rent from a shop in the Municipal market shopping complex; (v) a job offer letter dated 11.12.2014 from the United Kingdom, offering the position of a Telecom Rigger; (vi) bank statements of the Deceased and (vii) certificate of Kerala Motor Transport Workers Welfare Fund Board.

6. Taking into consideration the aforementioned documentary evidence concerning the Deceased’s income, the Tribunal concluded that he was a skilled labourer. It was also observed that the Deceased was earning from the rent he received from the room leased out to conduct fish vending business. The Tribunal opined that the Deceased was a driver and accordingly fixed his monthly income at Rs.14,000/-. Additionally, assuming that the Deceased received at least Rs.3,500/- as rent, the Tribunal calculated his final notional income as Rs.17,500/- (Rs. 14,000 + Rs. 3,500). The Tribunal fixed the total compensation of loss