1.
Annual Income:
o Monthly Income: Rs. 7,691
o Annual Income: Rs. 7,691 x 12 = Rs. 92,292 per annum.
2. Addition for Future Prospects:
o Adjusted Annual Income (including future prospects) = Rs. 92,292
3. Deduction for Personal and Living Expenses:
o For an unmarried deceased with only parents as dependents, a 1/2 (50%)
deduction is made for personal and living expenses.
o 1/2 of Rs. 92,292 = Rs. 64,604.40.
o Multiplicand (Annual Contribution to Dependent Family) = Rs.
129,208.80 - Rs. 64,604.40 = Rs. 64,604.40.
Step 2: Ascertaining the Multiplier
Based on the assumed age of 20 years (within the 15 to 25 years age bracket), the
appropriate multiplier is 18.
Step 3: Actual Calculation of Loss of Dependency
Loss of Dependency = Multiplicand x Multiplier
Loss of Dependency = Rs. 64,604.40 x 18 = Rs. 1,162,879.20.
Step 4: Other Additions (Conventional Heads)
These are conventional amounts that are enhanced at a rate of 10% every three years. The
amounts provided in the sources reflect these updated figures:
Loss of Estate: Rs. 16,500.
Loss of Consortium: Rs. 44,000 for each claimant. As per the assumption of
parents as dependents, and considering "filial consortium" is included in the broader
definition of "consortium", if there are two parents, this would typically be Rs. 44,000
x 2 = Rs. 88,000.
o Note: Compensation under the head of "love and affection" is not
permissible, as it is comprehended within the "loss of consortium".
Funeral Expenses: Rs. 16,500.
Total Conventional Heads = Rs. 16,500 (Loss of Estate) + Rs. 88,000 (Loss of Consortium
for 2 parents) + Rs. 16,500 (Funeral Expenses) = Rs. 121,000.
Total Compensation Amount:
Total Compensation = Loss of Dependency + Total Conventional Heads
Total Compensation = Rs. 1,162,879.20 + Rs. 121,000 = Rs. 1,283,879.20
Supporting Judgements and Principles:
The methodology for calculating compensation in death cases is well-established by various
judgments:
Computation Steps: The general steps for computation, including ascertaining the
multiplicand, multiplier, and calculating loss of dependency, are outlined in various
judgments, notably in Sarla Verma and others Vs Delhi Transport Corporation and
another (2009) 6 SCC 121 and National Insurance Co. Ltd vs Pranay Sethi & others
(2017) 16 SCC 680.
Minimum Wage as Yardstick: In the absence of a salary certificate, the minimum
wage notification can serve as a yardstick for fixing the income, though it's
acknowledged that it cannot be an absolute figure and requires some guesswork
(Chandra @ Chnada @ Chandraram vs Mukesh Kumar Yadav, (2022) 1 SCC 198).
Future Prospects: The addition for future prospects, such as 40% for those under 40
years of age in self-employed/fixed salary categories, is based on principles laid down
in National Insurance Co. Ltd vs Pranay Sethi & others (2017) 16 SCC 680.
Deduction for Personal Expenses: The varying deductions (e.g., 1/2 for unmarried
deceased with only parents as dependents) are also established principles.
Multiplier Selection: The specific multiplier table linked to the age of the deceased,
such as M-18 for ages 15-25 years, is a standard component of MACT compensation
calculations.
Conventional Heads: The fixed amounts for Loss of Estate (Rs. 16,500), Loss of
Consortium (Rs. 44,000 per claimant), and Funeral Expenses (Rs. 16,500) are
derived from judgments like National Insurance Co. Ltd vs Pranay Sethi & others
(2017) 16 SCC 680. These amounts are subject to enhancement at 10% every three
years.
Consortium: The concept of "consortium" includes spousal, parental, and filial
consortium, covering aspects like company, care, comfort, guidance, solace, and
affection of the deceased. This is supported by Magma General Insurance Company
Limited versus Nanu Ram alias Chuhru Ram and others, (2018) 18 SCC 130. It has
been clarified that compensation under the head of "love and affection" is not
permissible as it is subsumed within "loss of consortium" (Raj Bala and Others
Versus Rakeja Begam and Others, 2022 SCC OnLine SC 1453; Janabai and Others
Vs I.C.I.C.I. Lambord Insurance Company Ltd., 2022 SCC OnLine SC 994).
Nature of MACT Proceedings: It is important to remember that MACT proceedings
are inquiries using a summary procedure, not regular civil suits (Jai Prakash Vs
National Insurance Co. Ltd. & Ors. (2010) 2 SCC 607). Tribunals are expected to
take an active role in determining just compensation and are not merely passive
adjudicators (Jai Prakash Vs National Insurance Co. Ltd. & Ors. (2010) 2 SCC 607;
Sunita & Ors. Versus: Rajasthan State Road Transport Corporation & Anr., (2020)
13 SCC 486). The Motor Vehicles Act itself is considered a beneficial piece of
legislation intended to provide solace to victims.
