Motor Vehicle Accident Claim – The victim-deceased was knocked down by the offending bus – Victim died on spot – Deceased was 57-58 years of age and was employed as a phone mechanic with BSNL – The Tribunal assessed the compensation at ₹28,66,994/- – However, the High Court reduced the compensation under the head of loss of dependency by bifurcating the period for which the deceased would have remained in service and post-retirement – The total amount of compensation assessed by the High Court was ₹19,66,833/- – Correctness:
Held: The Tribunal assessed the compensation on account of loss of income taking the annual income of the deceased at ₹4,57,000/by applying a multiplier of 9 and applying a cut of one-third towards personal expenses – The High Court applied a split method – The High Court has erred in not considering the principles laid down in the cases of Sarla Verma v. DTC and Sumathi v. M/s. National Insurance Company Ltd. – Normally Courts and Tribunals have to apply the multiplier as per the judgement of this Court in Sarla Verma – Any deviation from the same warrants special reasons to be recorded – In the case in hand, neither any special reason has been recorded by the High Court while applying the split method nor there is one in the facts of the case – The deceased was a technically qualified person and healthy – He would have continued working even after retirement – Considering the aforesaid factual aspects and position of law, the compensation on account of loss of income while applying the multiplier of 9 by the Tribunal without applying the split method is the correct calculation on that account – Moreover, the Tribunal as well as the High Court had failed to award future prospects while calculating the compensation – Considering the age of the deceased, the appellant would be entitled to future prospects @ 15% – On account of loss of estate and funeral expenses, the amount of ₹15,000/- each awarded by the High Court is as per law – As far as loss of consortium is concerned, there are three claimants, namely, the widow, one son and one daughter – They would be entitled to compensation on account of loss of consortium @ ₹40,000/- each – Thus, the award of the Tribunal is modified – The appellants are held to be entitled to total compensation of ₹33,03,000/-. [Paras 11.1, 11.2, 11.5, 12. 14]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
This page is for informational and research purposes only and does not constitute legal advice. Consult a qualified advocate for advice specific to your situation.