NEW INDIA ASSURANCE CO. LTD. Vs. SANTOSH DEVI

JUDGEMENT

(1.) THIS Appeal arises out of a Claim Petition MACT Suit No.292/2008 preferred under Section 163-A of the Motor Vehicles Act, 1988 which was allowed by a judgment dated 11.08.2011. A compensation of Rs. 6,82,500/- along with interest @ 7.5% was awarded for the death of Rahul who was aged 38 years at the time of the accident.

(2.) IT was contended on behalf of the Appellant that once a petition was filed under Section 163-A of the Motor Vehicles Act, the compensation should have been according to structured formula given in the II Schedule. The Claims Tribunal erred in granting future prospects in the income of the deceased and the deduction should have been 1/3rd as mentioned in the II Schedule as against 1/5th made by the Claims Tribunal.

(3.) THEREFORE, the income of the deceased shall be restricted to Rs. 40,000/- to bring it under the purview of Section 163-A. Deducting 1/3rd towards personal expenses, which was wrongly taken by the Claims Tribunal as 1/5th, the income of the deceased would come to Rs. 26,666/-. Now applying the multiplier of 16 according to the age of the deceased as provided under the II Schedule, the loss of dependency would be Rs. 4,26,656/-. Adding the compensation under non-pecuniary heads of loss to estate and funeral expenses of Rs. 5,000/- and Rs. 2,500/- respectively, as rightly granted by the Claims Tribunal, the total compensation would be Rs. 4,34,156/-.