Motor Accident Claims

R.Manivasagan (Querist) 08 November 2008 This query is : Resolved
My Client's husband was an Employee in Tamilnadu Electricity Board and drawn salary of Rs.10358/- per month and after all the deductions, he had received a sum of Rs.7400/- per month. at the age of 40, he died in a Road Accident leaving his 27 year old wife and 3 year old son. there is no custom in their community for re-marriage. Now the question is
1. Is the deductions by the employer has to be deducted while calculating the compensation or not?

2.How amount the Legal heirs can get as Compensation?
3. What multiplier to be adopted?
Please solve my query with latest citations. please my dear experts.

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Srinivas.B.S.S.T (Expert) 09 November 2008
Schedule II of MV act has to be followed for calculating the amount of compensation for loss of earnings. 1/3rd of the amount shall be deducted from that as the victim would have incurred the same towards maintaining himself had he been alive.

Now for No. 1 of your question. The deductions by the employer need not be deducted as the same would have been earnings if the victim is alive. Generally the deductions will be PF, LIC, Gratuity and so on. I have to refer with regard to this and i will let you know soon

2. Schedule II

3. In the case referred by you the age of the victim is 40. If his age not exceeds 40 then the multiplier is 16 and if he is above 40 then it is 15.

Tribhuwan Pandey (Expert) 09 November 2008
1. 1/3rd amount shall be deducted only on salary of Rs. 10358 + which ever income of the deceased you can prove.

2. Determination of Compensation-Rs. 10358x1/3x multiplier+Funeral expenses+loss of Estate (consortium)+Medical expenses if any + interest. Best law in this regard is R.D. Hattangadi Vs Pest Control decided on 06/01/1995, in which pecuniary damages and special damages have been defined broadly.

3. Now the question of muliplier - Schedule II strictly apply on the claim petitions filed U/s 163-A of MV Act whose income is under 40,000/- per annum. Your claim petition does not lie under this Section. Your peition will be U/s 166 of MV Act in which according to latest laws Schedule II does not apply strictly. It should be just and proper. Following are the latest laws of Supreme Court on multiplier:

(i)New India Ass. Co. Vs Smt. Kalpana-Civil Appeal No. 255 of 2007 decided 17-01-2007
(ii)UPSRTC Vs Krishna Bala Civil Appeal No. 4267 of 2002 decided on 13-07-2006
(iii)Managing Director TSRTC Vs KS Bindu Civil Appeal No. 6143 of 2005 decided on 05-10-2005.

Hence in your case multiplies would be 8 to 12.