A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident -- Annual salary of the deceased came to Rs.14,40,000/- and after income tax the annual salary comes to Rs.11,99,000/- -- As the deceased was 52 years old, 15% addition in income was given towards future prospects and hence the salary per annum came to Rs.13,78,850/- -- After deducting 1/4th the dependency of the claimants came to Rs.10,34,138/- which was rounded of to Rs.10,34,000/- -- Multiplier of 11 is applied -- Compensation came to Rs. 1,13,74,000/- -- A sum of Rs.1,00,000 was awarded on account of loss of consortium to widow, Rs.1,00,000/- was awarded towards love and affection to children (Claimants no. 2 to 4) and an amount of Rs.25,000 was awarded for funeral expenses of the deceased. Hence the claimants were found entitled to total compensation of Rs.1,15,99,000/- by the Tribunal – Award held to be rightly passed.

(Para 13, 16)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident -- Deceased lady was non-working -- Her notional income was taken as that of a home maker as Rs.5000/- -- After deducting 50% towards the personal expenses of the deceased the annual income came to be Rs.30,000/--- Age of the deceased was 60 years -- After applying the multiplier of 9, the compensation came to Rs.2,70,000/- -- An amount of Rs.1,00,000 was awarded for loss of love and affection for the claimants and an amount of Rs.25,000/- was awarded for funeral expenses of the deceased -- The total compensation came to Rs.3,95,000/- -- Award held to be rightly passed.

(Para 12, 16)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident – Insurance Company’s right to appeal -- Insurer has no right to file an appeal to challenge the quantum of compensation or finding of the Tribunal as regards the negligence or contributory negligence of the offending vehicle – Insurance Company has come up in appeal against the award primarily on the quantum of compensation liable to be dismissed.

(Para 15)

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Negligence of driver -- Author of FIR has not been examined -- Driver of the offending bus was reversing the bus in order to park the same at its counter and during that process, the left side of the bus hit the deceased which ultimately resulted into his death – Held, it was the duty of the driver to take the help of cleaner of the bus while parking the bus -- Driver has not stated that he took the help of cleaner of the bus or anyone else while reversing the bus -- Since he has not taken due precaution and as such the accident has taken place due to rash and negligent driving.

(Para 14, 15)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case -- Income of deceased in the year 1997 taken as Rs.3000/- per month -- 1/3rd amount has to be deducted in respect of personal expenses, the dependency comes to Rs.2000/- per month – By applying the multiplier of 5, the amount comes to Rs.1,20,000/- -- Another sum of Rs.10,000/- stands allowed in respect of last rites and transportation of dead body -- Rs.20,000/- stands allowed to widow in respect of consortium -- Widow is held entitle to claim Rs.1,50,000/- as compensation -- Claimant shall be further held entitle to claim interest @ 7.5% per annum from the date of application till its payment.

(Para 19)

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Insurance of vehicle -- Duty of owner -- An owner of a vehicle in terms of the provisions of the Motor Vehicles Act is legally obligated to get the vehicle insured -- Rights and liabilities of the parties to the contract of insurance would be governed thereby subject to the provisions of the Motor Vehicles Act.

(Para 7)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Invalid driving license – Recovery right to Insurance company -- Owner has a duty to see that a vehicle is driven by a person having a valid driving licence – Driver’s license was proved to be invalid -- Owner did not raise any contention that he has used due diligence in allowing the driver to drive the vehicle -- Appellant/ Insurance Company was directed to deposit the amount directing that the company may recover the same from respondent Nos.3 (Driver) and 4 (owner) – Executing Court dismissed Execution application being not maintainable, however Insurance Company was given independent right to recover the amount from insured (Owner and Driver) as per award through regular civil suit – High Court affirmed the order – Held, it would be travesty of justice, if the Insurance Company which is directed to pay the amount and then face immense difficulties in executing a decree -- Impugned judgments cannot be sustained -- Appeals are allowed, the executing courts are directed to proceed with the execution and dispose of the same as expeditiously as possible.

(Para 3-10)

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in Motor vehicle accident case – Permanent job -- Future prospects – As a rule of thumb,

--     an addition of 50% of actual salary to the actual salary income of the deceased towards future prospects, where the deceased had a permanent job and was below 40 years [where the annual income is in the taxable range, the words ‘actual salary’ should be read as ‘actual salary less tax’]

--     Addition should be only 30% if the age of the deceased was 40 to 50 years.

--     There should be no addition, where the age of deceased is more than 50 years.

Though the evidence may indicate a different percentage of increase, it is necessary to standardize the addition to avoid different yardsticks being applied or different methods of calculations being adopted.

(Para 11)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in Motor vehicle accident case – Self-employed – Fixed salary – Future prospects -- Where the deceased was self-employed or was on a fixed salary (without provision for annual increments etc.), the courts will usually take only the actual income at the time of death -- A departure therefrom should be made only in rare and exceptional cases involving special circumstances.

(Para 11)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in Motor vehicle accident case – Married deceased -- Deduction for personal and living expenses – Where the deceased was married, the deduction towards personal and living expenses of the deceased, should be

--     one-third (1/3rd) where the number of dependent family members is 2 to 3,

--     one-fourth (1/4th) where the number of dependant family members is 4 to 6, and

--     one-fifth (1/5th) where the number of dependant family members exceed six.

(Para 14)

D. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in Motor vehicle accident case – Bachelor deceased -- Deduction for personal and living expenses – Even if the deceased is survived by parents and siblings, only the mother would be considered to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the family -- However, where family of the bachelor is large and dependant on the income of the deceased, as in a case where he has a widowed mother and large number of younger non-earning sisters or brothers, his personal and living expenses may be restricted to one-third and contribution to the family will be taken as two-third.

(Para 15)

E. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in Motor vehicle accident case -- Multiplier – Held, multiplier to be used should be:

--   M-17 for 26 to 30 years,

--   M-16 for 31 to 35 years,

--   M-15 for 36 to 40 years,

--   M-14 for 41 to 45 years, and

--   M-13 for 46 to 50 years, then reduced by two units for every five years, that is,

--   M-11 for 51 to 55 years,

--   M-9 for 56 to 60 years,

--   M-7 for 61 to 65 years and

--   M-5 for 66 to 70 years.

(Para 21)

F. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in Motor vehicle accident case – Computation of income – Revision in pay -- Contention that revisions in pay scale subsequent to the death and before the final hearing should be taken note of for the purpose of determining the income for calculating the compensation is rejected.

(Para 24)