Motor Accidents Act, 1988 – Compensation – Award of – Death of self-employed (businessman) aged 42 years in a motor accident – Award of future prospects to the extent of 30% – In appeal, before the High Court, plea of the insurer-appellant that increase in the gross total income of the deceased as shown in income tax return would not justify award of future prospects – High Court held that having due regard to the progressive increase in the income of the deceased, the award of future prospects by the tribunal could not be faulted – On appeal, held: Future prospects cannot be denied in case the deceased was self-employed – Deceased being of 42 years of age at the time of the accident, an addition of 25% on the ground of future prospects would be warranted instead of 30% computed by the tribunal.
A self employed (businessman) aged 42 years died in an accident caused due to the negligence of the driver of the offending vehicle, insured by the appellant. The tribunal awarded
30 per cent towards the loss of future prospects in assessing compensation and awarded compensation of Rs. 30,26,810/-. In appeal, the insurer-appellant contended that the increase in the gross total income of the deceased as shown in income tax return would not justify award of future prospects. The High Court held that having due regard to the progressive increase in the income of the deceased, the award of future prospects by the tribunal could not be faulted. Hence, the instant appeal.
Disposing of the appeal, the Court
HELD: 1. Since the deceased was 42 years of age, an addition of 25% on the ground of future prospects would be warranted instead of 30% computed by the tribunal. The tribunal held that the annual income of the deceased (on the basis of the income tax returns for 2010-11, 2011-12 and 2012-13) would be Rs 1,81,500. Adding a component of 25% for future prospects, the income would stand at Rs 2,26,875. Deducting an amount of one fourth towards personal expenses, the loss of dependency per annum works out to Rs 1,70,156. Applying a multiplier of 14, the total loss of dependency would work out to Rs 23,82,187. The tribunal awarded a sum of Rs 3,14,335 towards medical expenses. An addition of Rs 70,000 would be required to be made in terms of the decision in *Pranay Sethi case on account of the conventional heads of loss of estate (Rs 15,000), loss of consortium (Rs 40,000) and funeral expenses (Rs 15,000). Hence, the total compensation is quantified at Rs 27,66,522 on which the claimants would be entitled to interest @ 9% p.a. from the date of the filing of the claim petition. The apportionment shall be carried out in terms of the award of the tribunal. [Paras 45][405-G-H; 406-A-B] *National Insurance Company Limited v. Pranay Sethi (2017) 13 SCALE 12 - relied on.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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