S 163A Motor Vehicle Act

J K Agrawal (Querist) 09 September 2008 This query is : Resolved
When a Claim is filed under MOTOR Vehicle Act, in case of death of boy of 27 year, not married, The claimants are parents aged about 50. The multiplier applicable is as per age of parents as it calculates less in comparison of calculation as per age of deceased. But if the case is filed UNDER SECTION 163A of MV Act age of DECEASED only is taken into consideration and no fact beyond schedule II is considered. Will anybody give me citation on this particular point? I have come to know that MFA 282/2002 decided on 20/11/2007 by the Honable Kerala High Court titled as I Damodaran v M K Valsala is direct citation on this point. Will any body help me to furnish hard or soft copy of the Judgment?

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H. S. Thukral (Expert) 09 September 2008
[KERALA HIGH COURT]

Damodaran
v
Valsala

K. S. RADHAKRISHNAN

20 Nov 2007

BENCH
K. S. RADHAKRISHNAN & T. R. RAMACHANDRAN NAIR

COMPARATIVE CITATIONS
2008 (1) KLT 396, 2007 INDLAW KER 1934

CASES REFERRED TO
Deepal Girishbhai Soni and Others v United India Insurance Company Limited Baroda 2004 Indlaw SC 234
Amar Singh v. Samsher Khan & Ors [2007 ACJ 1983]

ACTS REFERRED
Motor Vehicles Act, 1988[s. 163(A)]

CASE NO
M.F.A.No.282 of 2002

LAWYERS
K.V. Rajan, Joe Kalliath

.JUDGMENT TEXT

The Judgment was delivered by : HON'BLE JUSTICE K. S. RADHAKRISHNAN

Only question that has come up for consideration in this case is whether in a claim under S. 163(A) of the Motor Vehicles Act, 1988, age of the deceased or claimants has to be taken into consideration for determining the multiplier. Above mentioned legal question is covered by a judgment of the Supreme Court in Deepal Girishbhai Soni v. United India Insurance Co. Ltd. 2004 Indlaw SC 234 (SC) = 2004 ACJ 934. Supreme Court held as follows:

'The Second Schedule referred to in S.140 of the Act provides for a structured formula for the purpose of grant of compensation to a third party involved in fatal accident/ injury. By reason thereof, a multiplier system is introduced pursuant whereof and in furtherance whereof the amount of compensation is required to be calculated having regard to the age of the victim and his annual income. However, in terms of the note appended to the said Schedule the amount of compensation so arrived at in the case of fatal accident, the claim is to be reduced by one-third, in consideration of the expenses which the victim would have incurred towards maintaining himself, had he been alive."

Similar question came up for consideration before the Calcutta High Court in National Insurance Co. Ltd. v. Tara Sundari Devi 2007 (3) KLT 58 (C.No.74) Cal. = 2007 ACJ 1441). Interpreting S.163-Aread with Second Schedule of the Act, the court held that from the Second Schedule it appears that the age of the victim is the factor to identify the multiplier. Rajasthan High Court in Amar Singh v. Samsher Khan & Ors. 2007 ACJ 1983 interpreting S. 163-A, read with Second Schedule held that structured formula is legally sanctified and its application is mandatory and not directory in nature. If we apply the above mentioned principles to the facts of this case it is clear that the Tribunal has committed an error in calculating the multiplier basing on the age of the claimants. Deceased was aged 26 years. First petitioner, father was aged 70 years and the second petitioner, mother was aged 60 years. Tribunal has considered the age of the parents and has taken 5 as the multiplier. Since the age of the deceased was 26, the multiplier to be adopted is 18. If it is so calculated the claimant would be entitled to Rs.2, 59, 200/- as loss of dependency. Over and above, as held by the Tribunal, the claimants are entitled to get an amount of Rs.2000/- towards loss of estate and an amount of Rs.5000/- towards transportation and funeral expenses and Rs.5000/- towards pain and suffering. Altogether claimant is entitled to get a total amount of Rs.2, 71, 200/-. Appeal is therefore allowed and we award an additional compensation of Rs. 1, 87, 200/- with 7.5% interest from the date of the petition till realization. Award of the Tribunal is modified accordingly.