Future loss of income is payable using the claimant’s accident-age multiplier despite death during claim proceedings.

On 11 August 1993, Nathabhai Popatbhai Bharwad and Gagjibhai Haribhai Bharwad were travelling in goods truck No. GTK-4981 with goods and groceries when it collided with truck No. RJW-4445 due to the rash and negligent driving of both vehicles.

Both sustained serious injuries; Nathabhai died on 8 March 1994 and Gagjibhai died on 9 July 2003.

The Motor Accident Claims Tribunal awarded Rs.1,75,000 in MACP No.1494 of 1993 and Rs.4,00,000 in MACP No.1588 of 1993, with interest at 9% per annum.

The claimants appealed against the quantum, while New India Assurance Company Limited challenged the liability imposed upon it.

1. Whether the claimants were entitled to compensation for future loss of income despite the original injured claimants having died during the pendency of the proceedings, and, if so, what amount was payable.

2. Whether future prospects, functional disability of 100%, and a multiplier of 16 were applicable for computing compensation.

3. Whether New India Assurance Company Limited, which insured truck No. GTK-4981, was statutorily liable for injuries to persons travelling in a goods vehicle before the 1994 amendment to Section 147 of the Motor Vehicles Act, 1988.

4. Whether, in a case of composite negligence, United India Insurance Company Limited could be directed to satisfy the entire award initially, with liberty to recover 50% from the owner or driver of truck No. GTK-4981.

The Court applied the principle in Oriental Insurance Co. Ltd. v. Kahlon @ Jasmail Singh Kahlon, (2022) 13 SCC 494, that where an injured claimant dies during the pendency of a claim petition, the multiplier is to be applied with reference to the claimant’s age at the time of the accident and compensation may be awarded for future loss of income.

It relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for addition of future prospects, and applied 40% future prospects for claimants aged 33 and 34 years.

The Court applied the multiplier of 16 appropriate to the claimants’ ages and treated their functional disability as 100%.

Under New India Assurance Co. Ltd. v. Asha Rani, 2003 (2) SCC 223, an insurer was not statutorily liable for gratuitous passengers travelling in a goods vehicle under the law applicable before the amendment to Section 147 came into force on 14 November 1994.

Under Khenyei v. New India Assurance Co. Ltd., (2015) 9 SCC 273, liability for composite negligence is joint and several; the claimant may recover the entire compensation from any one tortfeasor, while inter se apportionment does not restrict the claimant’s right of recovery.

The Court found that Nathabhai and Gagjibhai had suffered 100% functional disability and had become bedridden before their respective deaths.

Applying Kahlon, the Court held that their subsequent deaths did not prevent computation of future loss of income with reference to their ages at the time of the accident.

As their alleged income was not proved by cogent evidence, the Court assessed annual income at Rs.15,000, added 40% for future prospects, and applied a multiplier of 16: Rs.21,000 × 16 = Rs.3,36,000 for each claimant.

The existing awards for medical expenses and pain, shock, suffering, transportation, attendant charges and special diet were maintained, resulting in total compensation of Rs.5,11,000 for Nathabhai and Rs.7,36,000 for Gagjibhai, with additional compensation of Rs.3,36,000 in each appeal.

On liability, because the accident occurred in 1993, before the 14 November 1994 amendment, New India Assurance was not statutorily liable for the claimants travelling in the goods vehicle insured by it.

The Court further held that the premium for liability towards coolies did not establish coverage of these claimants, particularly in light of their pleading that they travelled as owners of goods.

Since both drivers were negligent, the case involved composite negligence.

Applying Khenyei, the Court directed the insurer of the other offending vehicle, United India Assurance, to satisfy the entire award initially, while permitting recovery of 50% from the owner or driver of truck No. GTK-4981.

In each claim, total compensation was enhanced by Rs.3,36,000, carrying interest at 9% per annum from the date of the claim petition until realization.

New India Assurance Company Limited was exonerated from liability.

United India Insurance Company Limited was directed to deposit and satisfy the entire enhanced award, including the additional compensation, within six weeks, with liberty to recover 50% of the awarded amount from the owner or driver of truck No. GTK-4981 through execution proceedings.

The Tribunal was directed to disburse the amount after verification and deduction of any deficit court fee, and the amount deposited by New India Assurance was ordered to be refunded.