Motor Vehicles Act, 1988: Compensation – Fatal accident – Tribunal considered notional income of the deceased at Rs.10,000 per month and awarded compensation of Rs.20.64 lacs – High Court reduced compensation to Rs.11.34 lacs by considering notional income of Rs.6500 per month – High Court also reduced rate of interest from 9% to 6% p.a. – Appeal by claimants against reduction of compensation – Held: The amount awarded by the High Court can be said to be on lower side – While awarding the loss of dependency, the High Court did not award/consider the future prospects at all – Considering the decision in the case of Pranay Sethi and Ors. and the decision in the case of Janabai, the claimant shall also be entitled to Rs. 40,000/- towards parental consortium for minor child; Rs. 40,000/- towards spousal consortium for wife and Rs. 40,000/- towards filial consortium for the father of the deceased – High Court also erred in reducing interest from 9% p.a. to 6% p.a. – Considering the fact that the deceased died in the year 2012, the claimants shall be entitled to the interest @ 7.5% p.a. Partly allowing the appeals, the Court
HELD: The amount awarded by the High Court can be said to be on lower side. While awarding the loss of dependency, the High Court has not awarded/considered the future prospects at all. As per the decision of this Court in the case of National Insurance Company Limited Vs. Pranay Sethi and Ors., there shall be 40% rise towards future prospects. Therefore, even if considering the notional income @ Rs. 6,500/- per month as determined by the High Court and adding 40% towards future prospects and deducting 1/3rd towards personal expense of the deceased and by applying the multiple of 17, the claimant shall be entitled to Rs. 12,37,790/- under the head loss of dependency. Considering the decision of this Court in the case of Pranay Sethi and Ors. and the recent decision of this Court in the case of Janabai and Ors. Vs. I.C.I.C.I. Lombard General Insurance Company Ltd., the claimant shall also be entitled to Rs. 40,000/- towards parental consortium for minor child; Rs. 40,000/- towards spousal consortium for wife and Rs. 40,000/- towards filial consortium for the father of the deceased. Thus, the claimants shall be entitled to Rs. 1,20,000/- under the head loss of consortium. The claimants shall also be entitled to Rs. 30,000/- under the conventional head (funeral expense and loss of estate). The High Court has also erred in reducing the interest from 9% p.a. to 6% p.a. Considering the fact that the deceased died in the year 2012, the claimants shall be entitled to the interest @ 7.5% p.a. [Para 4][1010-F-H; 1011-A-C]
National Insurance Company Limited v. Pranay Sethi and Ors. (2017) 16 SCC 680 : [2017] 13 SCR 100; Janabai and Ors. v. I.C.I.C.I. Lombard General
Insurance Company Ltd. 2022 ACJ 2003 – 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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