Sayari Devi & Ors. - Appellant Versus Rameshwarlal & Ors. - Respondent

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 — Compensation — Assessment of Income — Proof of Income.

Motor Vehicles Act, 1988 — Compensation — Future Prospects — Multiplier.

Motor Vehicles Act, 1988 — Compensation — Non-Pecuniary Damages — Enhancement.

Ratio decidendi

• For calculating motor accident compensation, the deceased's monthly income should be assessed at Rs. 2,000, overriding the Tribunal's lower assessment, when positive evidence from the employer supports an income of Rs. 2,000-2,200 per month.
• A 50% rise in income for future prospects must be acknowledged when calculating loss of income for a deceased aged 28 years, in light of the principles laid down in Santosh Devi v. National Insurance Co. Ltd.
• For a deceased aged 28 years in motor accident claims, the correct multiplier to be applied for calculating loss of income is 17, as per the law propounded by the Supreme Court in Sarla Verma & Ors. v. Delhi Transport Corporation & Anr.
• Compensation for non-pecuniary heads in motor accident claims, specifically for loss of consortium and loss of love, affection, and service, must be enhanced from Rs. 10,000 to Rs. 25,000 for the widow and from Rs. 4,000 to Rs. 15,000 each for children and mother, respectively, if the initial amounts are grossly inadequate.

Important points

• Held: Deceased's monthly income for compensation calculation should be Rs. 2,000, overriding the Tribunal's lower assessment.
• Clarified: 50% future prospects must be added to income for a 28-year-old deceased in motor accident claims.
• Declared: Multiplier of 17 is applicable for a 28-year-old deceased in motor accident claims.
• Enhanced: Compensation for loss of consortium increased to Rs. 25,000 and for loss of love, affection, and service to Rs. 15,000 each.
• Directed: Enhanced amount to carry 7.5% interest from the date of filing the claim application.
• Directed: Disbursal of enhanced amount: 20% cash, 80% fixed deposit with a 5-year lock-in period.

Keywords