May,31,2015: A three Judge Bench comprising of Hon'ble Justice Anil R. Dave, Hon'ble Justice Madan B. Lokur and Hon'ble Justice Kurian Joseph, directed MACTs to choose correct multiplier as per age of deceased for compensation. It has been held that the correct multiplier to be used shall be with reference to the age of the deceased and not that of the dependents as there is certainty with regard to the age of the deceased but as far as that of dependants is concerned, there will always be room for dispute as to whether the age of the eldest or youngest or even the average, etc., is to be taken. Also, in case of a self-employed bachelor, 50% deduction shall be made towards personal and living expenses.
The present case evolved from the decision of the Motor Vehicles Claim Tribunal and the subsequent appeal in the High Court regarding the award granted for the loss of dependency wherein the claimants are the parents of the deceased, a self-employed bachelor aged 30 years.
The Court with regards to the deduction towards personal and living expenses, fixed it at 50% in cases of bachelors as they would be expected to spend more on themselves unless there is evidence of the dependents. With regards to the multiplier used, the bench altered it from 13 to 17 as the age of the deceased is to be considered while determining the multiplier and the deceased was between 26 to 30 years.
In this case the Motor Accident Claims Tribunal awarded a total compensation of Rs.6,59,000 to the family of deceased. The High Court enhanced the compensation and fixed it at Rs.12,61,800. Applying the multiplier of 17 as per the age of the deceased between 26 to 30 years, award was enhanced to Rs.18,36,000.
Read the full Judgment here-