HC reduces compensation amount awarded by MVC tribunal

: Coming down on the Motor Vehicles Compensation Tribunal for 'not applying its mind to the factors involving just compensation and awarding Rs 30 lakh to the family of a deceased state road transport corporation driver, Madras High Court bench reduced it to Rs 23 lakh.
Allowing an appeal by United India Insurance and the lorry owner, whose vehicle hit the state transport corporation bus, leading to the death of the driver,Justices V Dhanapalan and V M Velumani agreed with the appellants that the award was contrary to law and exorbitant. The tribunal had failed to deduct one fourth of the income of the deceased driver for personal and living expenses.

Under the "Loss of Love and affection", the tribunal had exorbitantly awarded the compensation on February 6 2008.
The Judges said though the award was not challenged in the trial court, there were principles enunciated by the Supreme Court for calculating the amount.
In this case the Tribunal had not applied its mind to the relevant factors involved in a fatal accident in what is to be followed in awarding the compensation. They should have taken into account loss of dependency, future prospects and what is the multiplier to be applied.
"The total deduction from the income and then money for non-pecuniary damages,viz.Loss of love and affection; loss of consortium had not been properly looked into by the tribunal. The tribunal should have fixed a compensation of Rs 23,20,000 only," the bench said.

The appellants submitted that the tribunal had overlooked the principle of awarding compensation under the Motor Vehicles Act and it was also against judicial pronouncements.
The accident took place on Nov 3 2006 as the lorry hit the bus in Madurai city,leading to the death of the bus driver, whose family was awarded a compensation of Rs 30 lakh.
As the appellants were absent during the hearing, the claim was allowed and the family were given Rs 30 lakh as compensation. Hence the appeal.