Facts
The deceased, Ms. Kamla, was walking on Main Rohtak Road on February 9, 2020, when she was hit by an Etios car (HR-51BS-3680) being driven at a high speed in a rash and negligent manner.
Source reference: p. 1-2She succumbed to her injuries on March 2, 2020.
Source reference: p. 2The Motor Accidents Claims Tribunal (MACT), West, Tis Hazari Courts, awarded ₹30,58,138 at 6% interest per annum to the claimants on February 6, 2023.
Source reference: p. 1The Insurance Company appealed this award, challenging the assessment of the deceased's age and the percentage of future prospects granted.
Source reference: p. 2-3Issues
1. Whether the MACT erred in assessing the age of the deceased as 38 years based on her Aadhar Card, given the inconsistency with her eldest daughter’s age.
Source reference: p. 22. Whether the addition for future prospects should be reduced from 40% to 25% based on the revised age of the deceased.
Source reference: p. 33. Whether the interest rate of 6% awarded by the Tribunal was adequate.
Source reference: p. 3Law Applied
The court primarily applied the principles for calculating compensation in motor accident claims established in National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680, specifically regarding the slab-based addition for future prospects: 40% for deceased persons under 40 years and 25% for those between 40 to 50 years.
Source reference: p. 3Regarding interest rates, the court relied on Kaushnuma Begum & Ors. v. New India Assurance Co. Ltd. (2001) 2 SCC 9, which mandates that interest rates should align with the standard fixed deposit rates provided by nationalized banks as per Reserve Bank of India (RBI) policy.
Source reference: p. 3Reasoning
The Court found the Tribunal’s assessment of the deceased’s age (38 years) as logically inconsistent, as the deceased's eldest daughter was 28 years old at the time of the accident, which would imply the deceased gave birth at age 10.
Source reference: p. 2Relying on the post-mortem report and the husband's affidavit, the Court reassessed the deceased’s age as 48 years.
Source reference: p. 2-3Consequently, following the Pranay Sethi guidelines, the Court reduced the multiplier from 15 to 13 and the future prospects from 40% to 25%.
Source reference: p. 3-4Regarding interest, the Court observed that RBI published rates for 2020 were 6.5%, thereby necessitating an increase from the 6% awarded by the MACT.
Source reference: p. 3Holding
The Court allowed the appeal in part. It reduced the total compensation from ₹30,58,138 to ₹24,23,662 (a reduction of ₹6,34,476) but increased the interest rate from 6% to 6.5% per annum.
The Court directed the Insurance Company to deposit the balance revised amount with the MACT within four weeks for disbursal to the claimants. The statutory deposit was ordered to be refunded to the appellant.
Source reference: p. 4-5Original Court PDF
National Insurance Company LimitedvsSh. Kanhaiya Lal & Ors.
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