NEW INDIA ASSURANCE CO.LTD. Vs. SATENDER

JUDGEMENT

(1.) Leave granted.

(2.) Challenge in this appeal is to the judgment rendered by a learned Single Judge of the Delhi High Court in an appeal filed by the appellant. In the appeal, the quantum of compensation awarded to the respondents 1 and 2 by the Motor Accidents Claims Tribunal; Delhi (in short the MACT) was questioned.

(3.) Factual background in a nutshell is as follows: On 7.5.2002 a child -Anuj, aged about nine years was knocked down by a truck which was the subject -matter of insurance with the appellant. As a result of the accident, said child died. A claim petition was filed under Section 166 of the Motor Vehicles Act, 1988 (in short the Act) claiming compensation. The MACT found that the child was not earning and, therefore, the compensation has to be assessed on the basis of notional income. MACT referred to the second schedule to the Act and held that the notional income as per the said schedule is Rs. 15,000/ - p.a., but the same was unrealistic. Accordingly, the notional income was taken as Rs. 30,000/ - p.a. After deducting l/3rd towards personal expenses, the financial dependency of the parents was fixed at Rs. 20,000/ - p.a. considering the age of the parents, multiplier of 17 was adopted. The total financial dependency was calculated at Rs. 3, 40,000/ - for financial loss and a sum of Rs. 1, 00,000/ - was added for emotional loss and adding a sum of Rs. 5,000/ - for funeral expenses a sum of Rs. 4, 45,000/ - was awarded as compensation with interest at the rate of 9% p.a. from the date of institution of the claim petition till payment. An appeal was filed before the Delhi High Court by the appellant which, by the impugned judgment, came to be dismissed.