HC Enhances MACT Compensation; Grants Interest from Claim Filing Date

The case arose from a fatal motor accident dated 10.09.2019, where the deceased, a 23-year-old man, died after a car hit his motorcycle from behind near Gurudwara Manji Sahib. The parents of the deceased filed a claim petition under the Motor Vehicles Act seeking compensation. The Motor Accident Claims Tribunal, held the driver negligent and awarded compensation of Rs. 30,94,000.

However, the Tribunal granted interest only in case of default and not from the date of filing of the claim petition. Aggrieved, the claimants filed an appeal seeking enhancement and proper grant of interest, while the Insurance Company challenged the quantum, particularly disputing the assessed monthly income of Rs. 20,000.

Issue Raised: Whether the compensation awarded by the Tribunal required enhancement and whether interest should be granted from the date of filing of the claim petition.

HC Held: The High Court partly allowed the claimants’ appeal and dismissed the Insurance Company’s appeal. The Court upheld the Tribunal’s assessment of income at Rs. 20,000 per month, noting that the employer’s testimony and bank records sufficiently established the earnings. It emphasized that strict rules of evidence are not applicable in motor accident claims and a pragmatic approach must be adopted. The Court also upheld the addition of 40% towards future prospects and application of multiplier ‘18’, being consistent with settled Supreme Court principles.

Although, the Court modified the compensation under conventional heads. It disallowed “loss of love and affection” and instead granted filial consortium of Rs. 48,000 each to the parents, along with Rs. 18,000 each for funeral expenses and loss of estate. The total compensation was recalculated at Rs. 31,56,000, resulting in an enhancement of Rs. 62,000. Therefore, the Court corrected the Tribunal’s error on interest and held that interest at 9% per annum must be granted from the date of filing of the claim petition till realization, with a higher rate of 12% in case of delay beyond three months.

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