Kar HC | Compensation under MV Act enhanced considering relevant factors in line with cases decided by SC

Karnataka High Court: K. Somashekar, J. modified the order of the Motor Accidents Claims Tribunal (MACT) by enhancing the compensation awarded to the petitioners.

On 20-02-2008, the deceased Narasaiah after being hit by a car was taken to the hospital where he succumbed to his injuries. Due to the untimely death of the deceased, the petitioners, his wife and two children, suffered mental shock, pain, agony and suffering and lost financial assistance too. Therefore, the petitioners sought compensation.

The Motor Accidents Claims Tribunal (MACT) awarded compensation of Rs 1,90,000 with interest at 6% p.a. The petitioners were not satisfied with the aforesaid award and thus this petition for enhanced compensation.

Counsel for the petitioner, Bhushani Kumar contended that the compensation awarded is very low considering the family’s condition. It was further contended that the MACT failed to consider the income of the deceased by opining that the age of the deceased was 65 years whereas he was 50 years. Moreover, no compensation was awarded for loss of love and affection and towards transportation of deceased’s body.

Counsel for the respondent – Insurance Company, K. Suresh contended that the accident occurred due to the contributory negligence of the deceased also. Therefore, the insurer is not liable to indemnify. It further contended that the award for compensation is just and proper.

The Court observed that it would be appropriate to hold the multiplier of ‘9’ as the deceased falls under the age group of 56-60 years as per the case of  Sarla Verma v. DTC, (2009) 6 SCC 121. Taking the Supreme Court’s view in National Insurance Co. Ltd. v. Pranay Sethi, 2017 SCC OnLine SC 1270, 10% of the deceased’s income ought to have been added towards future prospects, which was not done by the MACT. But, the MACT was right in deducting 1/3rd of his income towards personal expenses. Therefore, the compensation under the head ‘loss of dependency’ comes to Rs 3,56,400. It was further observed that the compensation under the conventional head as per Pranay Sethi case should not exceed Rs 70, 000. But, the MACT awarded Rs 40,000, which is to be enhanced to Rs 70,000.

In addition to this, the Supreme Court in Magma General Insurance Co. Ltd. v. Nanu Ram, 2018 SCC OnLine SC 1546 held that “Parental consortium is granted on the premature death of the parent, loss of parental aid, protection, affection…”. In the instant case, the children of the deceased have lost the passion of their father. Therefore, an additional sum of Rs. 40,000 each should be awarded.[Laxmamma v. Raju P., 2019 SCC OnLine Kar 882, decided on 19-07-2019]

Join the discussion

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.