Summary
In two motor accident claims from Karnataka, each deceased was a licensed driver whose dependants claimed an income of Rs. 15,000 a month. The Tribunal assessed income at Rs. 7,500 a month, and the High Court raised it only to Rs. 8,500. On the claimants' appeals, the Supreme Court held that because the deceased held driving licences and worked as drivers, their income should be taken at no less than Rs. 10,000 a month. Adding 40% for future prospects, deducting one-third for personal expenses and applying the multipliers of 15 and 13, it recomputed loss of dependency and enhanced the totals to Rs. 18,50,120 and Rs. 15,76,104, with 6% interest. The insurer was to deposit the balance within eight weeks, failing which interest would run at 7.5%.
Issues
- What monthly income should be taken for licensed drivers killed in motor accidents where the Tribunal and the High Court assessed it at Rs. 7,500 and Rs. 8,500.
- How loss of dependency should be recomputed on that basis.
Provisions considered
- Sections 166 and 168 (just compensation), Motor Vehicles Act, 1988Loss of dependency was recalculated on a minimum income of Rs. 10,000 a month for licensed drivers, with 40% future prospects, a one-third personal deduction and the applicable multiplier. (¶¶ 4, 4.1, 4.2)
Held
- Because the deceased held valid driving licences and were working as drivers, their income should be taken at no less than Rs. 10,000 a month, not the lower figures adopted below. (¶ 4)
- Adding 40% for future prospects and rise in income, deducting one-third for personal expenses and applying multipliers of 15 and 13, the loss of dependency in each appeal was recomputed and the High Court's awards modified. (¶¶ 4, 4.1, 4.2)
- Total compensation was enhanced to Rs. 18,50,120 and Rs. 15,76,104 respectively, with 6% interest. The insurer was to deposit the balance within eight weeks, failing which interest would run at 7.5%. (¶¶ 5, 5.1)
Result
Appeals partly allowed. Compensation was enhanced to Rs. 18,50,120 in Civil Appeal No. 6676 of 2022 and to Rs. 15,76,104 in Civil Appeal No. 6677 of 2022, with 6% interest. The insurer was to deposit the balance within eight weeks, failing which interest would be 7.5%. No costs.