Must future prospects be granted to claimants in a motor accident claim, following Pranay Sethi?

Motor Accident Claims Tribunal — Compensation — Future prospects — Rate of interest —

Future prospects — National Insurance Company v. Pranay Sethi — 40% — Tribunal and High Court —

Held: The Tribunal and the High Court granted no future prospects to the claimants, and in terms of the Pranay Sethi judgement, future prospects at the rate of 40% are now granted to the claimants. (¶4)

Rate of interest — 7.5% — Total compensation — Appeal allowed —

Held further: The rate of interest should have been fixed at 7.5% and stands modified, so the total payable to the appellants is Rs 37,80,000/- at 7.5% interest, and the appeal is allowed. (¶3, 4)

Must future prospects be granted to claimants in a motor accident claim, following Pranay Sethi?

Yes. Future prospects were not granted by the Tribunal and the High Court; in terms of National Insurance Company v. Pranay Sethi the claimants get future prospects at the rate of 40%, so the total is Rs 37,80,000/- at 7.5% interest. [¶4]

“This appeal is of the claimants, which arises out of the Impugned Judgment dated 05.04.2017 by the High Court of Karnataka at Kalaburagi Bench in an appeal against the order of Motor Accident Claims Tribunal (for short, the “Tribunal”) dated 28.06.2014.”

“The accident occurred on 30.03.2010 when the deceased Kiran was riding on a two-wheeler from Sholapur to Pandharpur, Maharashtra. During the journey an accident occurred when a Heavy Goods Vehicle crashed into the two-wheeler and caused fatal injuries to Kiran, who died on the spot. The claim petition was filed on his behalf by his parents and younger brother. The Tribunal was of the opinion that the accident did occur due to the rash and negligent driving by driver of the Heavy Goods Vehicle. The vehicle was insured with respondent no.2 insurance company and the liability was fixed on the insurance company by the Tribunal. The award was made as per the following table : - Head Details/Amount Occupation T.V. News Reporter Income Rs. 10,000/- Age 25 Years Multiplier 15 Deduction on account of 50% (1/2) personal expenses Loss of Consortium Rs. 30,000/- Loss of Estate Rs. 50,000/- Funeral Expenses Rs. 25,000/- Rate of Interest awarded 6% TOTAL AMOUNT Rs. 10,05,000/-”

“The matter was taken in appeal to the High Court, which after considering the submissions of the insurance company awarded them increased compensation on the opinion that the income of the deceased should be taken as Rs.15,000/- and the multiplier should have been eighteen instead of fifteen. The High Court further increased the compensation granted under the head of loss of consortium to Rs.75,000/-. Therefore, the High Court awarded the amount of Rs.17,70,000/- with the amount to be given at the 6% interest. Though, we find that the rate of interest awarded should have been fixed at 7.5% and hence the rate of interest stands modified.”

“However, we think that the Tribunal and the High Court have erred in not granting future prospects to the claimants in terms of the judgement of National Insurance Company v. Pranay Sethi & Ors.[^1] Accordingly, the appeal is allowed and the future prospects at the rate of 40% is granted to the claimants. The total compensation payable to the appellants would be Rs 37,80,000/- at 7.5% interest.”