(1.) THIS is yet another unfortunate motor accident resulting in the instantaneous death of N. Linga Reddy (hereinafter referred to as 'the deceased'), a Supervisor in P.W. D. (I and B), Sultanabad. The accident had taken place when the lorry bearing No. APA 3373 driven by R -1 dashed against the scooter bearing No. ATY 8822 at 2.30 p.m. on 15.8.1980 on which the deceased was going with another as pillion rider from Karimnagar to Bejjanki. His mother, widow and four minor children filed O.P. No. 110 of 1980 on the file of the Motor Accidents Claims Tribunal, Karimnagar under Section 110 -A of the Motor Vehicles Act (hereinafter referred to as 'the Act') claiming an amount of Rs. 3,74,700/ - as compensation. The said claim was resisted by R -1 the driver, R -2 the owner of the lorry and R -3 the insurance company. The lower Tribunal held that the accident had taken place due to rash and negligent driving of the lorry by R -1. An amount of Rs. 20,000/ - was awarded as compensation with interest at 6 per cent per annum from the date of application. In view of the material on record, the learned District Judge, Karimnagar rightly held that the accident was due to rash and negligent driving of the lorry by R -1. The said finding was not seriously challenged. So, the only other point for consideration in this appeal is in regard to the adequacy of the amount awarded as compensation.
(2.) THE amount of compensation which appears to the Tribunal to be just has to be awarded under Section 110 -B of the Act. When there was a spate of rail accidents in England, Fatal Accidents Act, 1846, popularly known as Lord Campbell's Act, was brought into existence. As per the provisions of the said Act, such damages may be awarded as are proportionate to the injury resulting from such death to the dependants respectively. When road accidents were on the increase in England, Law Reform (Miscellaneous Provisions) Act, 1934 was brought into the statute book. While referring to the various decisions of the courts in England it was observed in McGregor on Damages in para 1551 that the dependant is entitled by clear principle of law to full compensation for the loss of pecuniary benefit due to the death of the deceased in motor accident. The various provinces in Canada adopted Lord Campbell's Act. The courts in Canada followed the compensatory principle in awarding damages to dependants in fatal accident cases. What is recoverable by the dependants as per courts in Canada must be calculated on the basis of restitution in integral; the goal is to restore the dependant to the financial position he or she would have occupied but for the death.
(3.) LATER lump sum method was adopted. As per that method, the annual loss for each of the future years of expected life of the deceased is first ascertained. The sum is totalled up. While some courts felt that the said entire amount has to be paid as compensation without any deduction for uncertainties and accelerated payment, other courts felt that some deduction had to be made in regard to the two factors referred to. Anyhow, the said method did not find favour in the later years.