Future prospect & Age multiplier in respect of the deceased is an essential criterion in computing compensation in Motor Accident Claim Cases

Harshit Sharma | Amity Law School, Madhya Pradesh | 16th December 2019 

Kunjan Sadana & Anr. V/s. Mahesh Kumar & Ors. 

FACTS OF THE CASE

1. The deceased, Yitesh Sadana @ Prince, in the present case was aged 19 years who succumbed to the injuries he was exposed during an accident he met with the bus, bearing number DL-1PA-4403 took place on 18.04.2007 which was proved to be by the negligence of the bus driver. 
2. It is pertinent to quote here that the bus had a third-party insurance from New India Assurance Company, in reference to which the present appellants [Widowed mo
3. ther and Younger Brother (minor) of the Deceased] filed a claim petition, which was allowed in part by the Motor Accident Claims Tribunal vide order dated 06.06.2009. 
4. Not satisfied by the compensation granted, the aggrieved party filed an appeal before the Delhi High Court for the enhancement of the compensation, which was partly allowed by the order dated 08.08.2017 and consequently enhancing the compensation from 3,72,620 to 5,02,620.   
5. Seeking further enhancement of the compensation which was awarded by the Hon’ble High Court, its order is being challenged before the Hon’ble Supreme Court of India on the ground that, the High Court took into consideration the age multiplier applied to widowed mother in spite to that which was applicable to the deceased. Furthermore, no due consideration was given to the future prospect of the deceased while computing the compensation in the instant case. 

Hence, the present Special Leave to Appeal before the Hon’ble Supreme Court of India.  

ISSUES RAISED

1. Whether the age multiplier applicable to that of the widowed mother be used or that of the deceased should be applicable for the purpose of computation of compensation amount in the cases of the Motor Accident Claims? 
2. What are the essential criterions be considered in determining the compensation of the death of deceased below the age of 40 years in cases of motor accidents? 
3. Whether future prospect be an essential ingredient to be used while computation of amount of Compensation in Motor Accidents Cases? 

RULING OF THE COURT/ THE COURT HELD THAT

1. The Supreme Court observed that the High Court has rightly determined the monthly salary of the deceased. In addition to the same, 40% of actual salary income be added towards the future prospects of the deceased, as his age was below 40 years. 
2. Moreover, since deceased was a bachelor, 50% of his gross income must be deducted towards personal living expenses of the deceased. 
3. Thus, the compensation payable to the claimants towards the loss of dependency after computation is ₹5,92,488 and in addition to the same ₹70,000 be given under the conventional head, making the total compensation amount as ₹6,62,448. 
4. The balance amount payable after deducting the compensation awarded and given by the High Court is ₹1,60,000 (Round-off) which shall be paid to the claimant. 
5. The said amount be paid with an addition of simple interest @ 7% from the date of presentation of claim petition till the date of deposit. 
6. The Insurance company is thereby directed to deposit the aforesaid amount before the Tribunal within 2 months from the date of receipt of the copy of this judgment. 
7. No orders for cost per se.