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Judgment
Deepak Verma, J.—Mr. S.V. Dandvate, learned Counsel for the appellant Insurance Company; Mr. M. Jain, learned Counsel for respondent Nos. 1 and 2. None appears for other respondents.
This appeal u/s 173 of the Motor Vehicles Act by the Insurance Company is only against the extent of amount of compensation. The Tribunal below, for the death of a child aged 7 years, awarded a sum of Rs. 2,25,000/- to the parents of the deceased i.e. respondent Nos. 1 and 2. The parents are aged 25-30 years.
The Tribunal below has taken recourse to the Schedule-II of the M.V. Act, which provides for a notional income in case the deceased was not an earning member. The notional income shown is Rs. 15,000/- per annum. It also provides for a multiplier of 15 to be applied in such a case. However, the Tribunal below has not made any allowance for the amount where the parents were required to spend on the deceased himself. Normal practice in this regard has been to reduce the amount of income by 1/3rd so as to arrive at the dependency.
By making allowance in the instance case, the dependency comes to Rs. 10,000/- per annum. By applying multiplier of 14, the amount of compensation thus comes to Rs. 1,40,000/- and to this further sum of Rs. 10,000/- needs to be added under other heads. We thus, conclude that the respondent Nos. 1 and 2 are entitled to get from the owner and insurer of the offending vehicle a total sum of Rs. 1,50,000/- as compensation.
Accordingly, this appeal is allowed in part and the amount of compensation is reduced, as aforesaid. Other directions regarding payment of interest etc. shall remain same as contained in the award. There shall be no order as to costs.