Kailashi (Smt.) & Ors. vs. Gopal Lal & Ors.

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 — Section 168 — Compensation — Loss of Dependency — Deduction for Personal Expenses.

Issues for determination

• Whether the Tribunal erred in reducing 1/3rd amount towards maintaining himself instead of 1/4th for calculating loss of dependency, in light of Sarla Verma judgment?

Ratio decidendi

• In motor accident claims, where the number of dependent family members is five, the Tribunal ought to reduce 1/4th of the deceased's annual income towards personal expenses for calculating loss of dependency, as guided by the Apex Court in Sarla Verma.

Important points

• Held: The appeal is partly allowed, enhancing the compensation amount from ₹2,12,000/- to ₹2,32,000/-.
• Held: Claimants are entitled to interest at 6% per annum on the enhanced compensation from the date of filing the claim petition.
• Rejected: The cross-objections filed by the insurer seeking reduction of compensation and interest rate are dismissed.

Keywords