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The Supreme Court enhanced motor accident compensation for a 38-year-old carpenter who lost his right leg, holding his functional disability was 100%.
Future earning loss for a student accident victim must be assessed in view of their career prospects, family background, and functional disability, with compensation calculated using a proper multiplier reflecting age. Directions are also issued to government and institutions to reform and expedite compensation schemes and mechanisms.
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For a 30-year-old self-employed bachelor deceased, 50% deduction for personal and living expenses is appropriate, 50% addition to income is warranted for future prospects and the multiplier of 17 should apply based on the age of the deceased, resulting in compensation of Rs. 18,36,000 towards loss of dependency.
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Where a child had no income and no evidence on actual damages was provided, compensation determined by applying notional income and structured formula is appropriate; the amount awarded by the High Court is adequate.
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The correct multiplier for compensation for a 53-year-old deceased is 8; deduction for loss of dependency must follow this multiplier, and conventional amounts previously awarded are upheld. No evidence supported intoxication or contributory negligence by the deceased.
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There was contributory negligence on the part of the claimant. Considering the nature of the accident, liability of the Corporation was fixed at Rs. 2,35,000/- with interest @ 6% from the date of accident.
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Legal representatives who are not dependants of the deceased are entitled to claim compensation under the Motor Vehicles Act, 1988; liability for compensation does not depend on dependency.
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Considering the age of the deceased (33 years), the appropriate multiplier is 13. In the absence of definite material about income, monthly contribution to family fixed at Rs.3,000. Compensation recalculated accordingly with interest at 6% per annum from date of claim till payment.
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Despite the bar created by Section 64-VB of the Insurance Act, 1938, the insurer issued a policy and became liable to satisfy third party compensation under Sections 147(5) and 149(1) of Motor Vehicles Act, 1988; public interest must prevail over insurer's interest and remedies lie against the insured, not third parties.
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