V. Pathmavathi & Ors. Vs Bharthi Axa General Insurance Co. Ltd & Anr. (Supreme Court of India)
The appeal arose from the judgment of the Madras High Court partly allowing the claimants’ appeal against the award of the Motor Accidents Claims Tribunal (MACT) in a claim under Section 166 of the Motor Vehicles Act, 1988. The deceased, aged about 37 years and employed as a driver, died in a road accident on 09.06.2011 when a tanker lorry, insured by the respondent insurance company, hit his two-wheeler. The claimants, comprising his widow, two minor children and parents, sought compensation of ₹20 lakh, claiming that the deceased earned ₹10,000 per month. The MACT held the accident occurred due to the negligence of the offending vehicle but, in the absence of documentary proof according to it, assessed the monthly income at ₹6,000, applied a multiplier of 16, awarded compensation of ₹9,37,000 with interest at 7.5%, and granted amounts under transport charges, consortium, funeral expenses, loss of love and affection and damages, while awarding nothing towards loss of estate.
The High Court affirmed the finding on negligence but enhanced the monthly income to ₹7,000 without assigning reasons, applied a multiplier of 15, increased compensation to ₹10,51,000 with interest at 7.5%, and maintained compensation under various conventional heads, including ₹60,000 towards loss of love and affection. Dissatisfied with the enhancement, the claimants approached the Supreme Court seeking further enhancement.
