Delhi High Court Modifies Multiplier in Motor Accident Compensation Claim Case

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Synopsis

Court noted that the deceased, along with her friend, had gone to a park for lunch after attending MCA classes

In a recent judgment related to a motor accident compensation claim case, the Delhi High Court ruled that the multiplier used for computing the claim should be determined based on the age of the deceased rather than the age of the dependent.

The decision came in response to a batch of appeals filed by both an insurance company and the parents of the deceased against the Motor Accident Claims Tribunal's (MACT) judgment.

A single bench, presided over by Justice Anish Dayal, addressed the appeal and stated, "... this Court finds that the use of multiplier '13' (based on the age of the dependent mother) by the Ld. MACT in the impugned judgement for calculating the loss of dependency is erroneous. Instead, the multiplier in the present case shall be '17' considering that the deceased was 26 years of age. Therefore, the amount payable towards loss of dependency in view of the above discussion stands modified."

Advocate Vandana Kahlon represented the appellant, while Advocate Nalin Tripathi represented the respondents in this case. The incident involved the daughter of the claimant parents, who suffered injuries in an accident and later succumbed to them.

The high court noted that the deceased, along with her friend, had gone to a park for lunch after attending MCA classes.

A Santro car hit the motorcycle they were riding on, leading to severe injuries and the eventual death of the deceased. The insurance company contested the compensation calculation, focusing on the income of the deceased, while the parents sought an enhancement of the awarded compensation.

The court, after considering the contentions, upheld the income assessment of Rs. 15,000 per month by the MACT. It remarked, "Having assessed the contentions of the parties, this Court is of the view that... the issue of income assessed at Rs. 15,000/- per month as determined by the Ld. MACT is reasonable, appropriate, and justified."

Addressing the deceased's existing earnings and her potential future income, the Court stated, "...If she had continued in the same organization post her MCA, she would have drawn Rs. 50,000/- per month, is also dispositive in this regard."

The high court had earlier directed the insurance company to deposit 75% of the awarded amount with interest to the MACT, specifying a deadline for the deposit. Furthermore, the court issued interim directions to release a specific amount along with accrued interest to the beneficiaries.

Conclusively, the high court disposed of the appeals, providing modified calculations for the compensation claim.

Case Title: TATA AIG General Insurance Co. Ltd. v. A.K. Tripathi & Ors.