Jharkhand High Court Awards Compensation Under 'Future Prospects' Head For Death Of 33-Year-Old Homemaker In Motor Accident

While enhancing the compensation awarded to the family of a 33-year-old woman who died on the spot in a road accident, the Jharkhand High Court observed that future prospects must be factored into the assessment of her contribution to the household.

Modifying the compensation awarded by the Motor Vehicles Accident Claims Tribunal from Rs. 3,84,000 to Rs. 5,69,600, the court observed that it would be appropriate to add 40% of income as future prospect while assessing the compensation amount.

Referring to judgments on the aspect of awarding compensation for future prospects Justice Subhash Chand in its order observed, “From the evidence on record, deceased was 33 years old lady and the learned Tribunal held that she was household lady as such notional income was assessed Rs.3,000/- per month. From the impugned award it is evident that the learned Tribunal has awarded nothing for the future prospect of the deceased...Therefore, the deceased who was 33 years old on the date of accident was a household lady. Taking into consideration her services to be provided to the family members even if for the sake of argument, she was not earning it would be appropriate to add the 40% of income as future prospect while assessing the amount of compensation". 

The court thus partially allowed a miscellaneous appeal moved the deceased woman's kin challenging the award passed by the Motor Vehicles Accident Claims Tribunal, Hazaribagh.

The case arose from a road accident in which the deceased, a 33-year-old homemaker, died on the spot when a bus collided with the jeep she was travelling in. The claimants, her family members, had filed a petition before the Motor Vehicles Accident Claims Tribunal seeking compensation, asserting that the deceased earned ₹10,000–₹11,000 per month from a provision store. The Tribunal, citing the absence of documentary evidence, rejected the claim of business earnings and assessed her notional income at ₹3,000 per month.

The High Court upheld the Tribunal's decision to assess notional income at ₹3,000 per month, stating, “Admittedly no documentary evidence has been adduced on behalf of the claimants in regard to running the provision store by the deceased. No licence issued by any local authority has been produced. No invoice has been adduced on behalf of the claimants in regard to purchasing the goods from the wholesalers for the purpose of resale of them on retail price at the grocery shop.”

Regarding the quantum of compensation, the Court stated, “while assessing the same on the basis of the annual income of the deceased being Rs.36,000/- per annum and 1/3rd of the income was being deducted for his personal expenses which the deceased might have incurred, therefore Rs.24,000/- annual income was assessed and the multiplier of the 16 was applied by the learned Tribunal and Rs.3,84,000/- was assessed as the amount of compensation. In addition to that a sum of Rs.1,00,000/- was awarded under the conventional head for loss of estate and Rs.1,00,000/- for love and affection and Rs.25,000/- awarded for funeral expenses, as such the total compensation was awarded Rs.6,09,000/-.”

The Court noted that the deceased, a 33-year-old homemaker, had her notional income assessed at ₹3,000/- per month. However, the Tribunal did not account for future prospects in its award.

Enhancing the compensation, the Court clarified that on the enhanced amount for future prospects, interest at 6% per annum would be applicable from the settlement of the issue on July 1, 2013, until the date of the award, and 9% per annum from the date of the award until actual payment.

Accordingly, the Miscellaneous Appeal was partly allowed, modifying the compensation from ₹3,84,000/- to ₹5,69,600/-, with the specified interest terms on the enhanced amount.

Case Title: Tapeshwar Prasad and Ors vs Akashyabat Ray and Ors

LL Citation: 2024 LiveLaw (Jha) 175

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