The Punjab and Haryana High Court ruled that if the deceased is self-employed or on a fixed salary and is below 40, an additional 40% of established income should be granted as future prospects.
The Bench enhanced the compensation of a 25-year-old deceased who died in a motor vehicle accident.
Brief Facts:
The Appellants (Claimants) have preferred the present appeal against the award passed by the Motor Accidents Claims Tribunal, on the ground of inadequacy of compensation amount.
Brief Background:
The deceased died in a motor vehicle accident caused by Respondent No.1 as was driving the offending truck in a rash and negligent manner.
The widow, minor child, and parents of the deceased filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Ambala, praying for compensation of 20,00,000/- along with interest @ 18% from the date of accident till the date of realization, on the ground that deceased aged 24 years was a skilled person, working as a computer operator and was also doing the work of dairy farming and agriculture to cumulatively earn Rs.40,000/- per month from both avocations. The claimants were solely dependent on the earnings of the deceased for sustaining their lives.
The Tribunal vide impugned award recorded a positive finding in favour of claimants and awarded a sum of Rs.10, 82,000/- as compensation along with the interest at the rate of 7.5% per annum.
Aggrieved with the award of the Tribunal, the Claimants preferred this appeal for enhancement of compensation.
Observations of the Court:
It was observed that the Deceased was a skilled person and knew how to operate the computer. But since no evidence was presented on record to prove his earnings, the Court ordered Rs. 7,200 to be taken as minimum wage income of the deceased.
Further, the Deceased was about to complete 25 years of age and hence, the selection of multiplier by 17 as done by the Tribunal was right.
Regarding future prospects, it was ruled that if the deceased is self-employed or on a fixed salary and is below 40, an additional 40% of established income should be granted as future prospects.
The decision of the Court:
Based on the reasons, the High Court enhanced the compensation and orders the Insurance Company to pay Rs.4,97,880 as compensation to the Claimants. Accordingly, the appeal was allowed.
Case Title: Saravjeet Kaur and others Vs Chet Ram
Coram: Hon’ble Justice Ritu Tagore
Case No: FAO- 458- 2016
Advocate for the Appellant: Adv. Mr. Arvinder Arora
Advocate for the Respondent: Adv. Mr. Rajnish Malhotra
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