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Motor Vehicles Act, 1988 – s. 166 – Fatal accident of a 22 year old student having brilliant career – Claim for compensation by his parents – Tribunal awarding compensation estimating his monthly income at Rs. 18,000/ Dependency of parents calculated at 1/3 of his income – Cross appeals – High court maintaining estimated income, while holding the dependency as 2/3 of the income – On appeal, held: Income of the deceased should have been estimated at Rs. 25,000/- pm – Deduction of 1/3 of the income justified. Respondents-claimants filed a petition u/s. 166 of Motor Vehicles act, 1988 for the death of their 22 year old son in a motor accident. They made a claim of Rs. 75 lakhs compensation on the premise that while he was doing his studies in U.K., he was earning Rs. 80,000/- per month in a part time job. After competition of his studies, he got an offer in a U.S. Based company at an annual salary of Rs. 18 lakhs. Tribunal passed the award considering his earning capability as Rs. 18,000/- per month and deducting 2/3 thereof as his personal expenses. In view of age of the claimants multiplier of 13 applied. Claimants filed an appeal seeking enhancement in the amount of compensation. Their plea was that dependency of the parents should have been considered at 2/3rd of the income and that expenses incurred during treatment should have been awarded. Cross-objection was filed by the Insurance Company. High court maintained the estimated income of the deceased, but opined that dependency of the claimants should have been at 2/3rd of the income. A sum of Rs. 1,25,000/- was also awarded towards medical expenses. Hence, the present cross-appeals. =Allowing the appeal filed by the claimants and dismissing that filed by the Insurance Company, the Court HELD: 1.1. The fact that the deceased was a brilliant student is not in dispute. He had graduated in Business Administration in U.K. Even as a student, in a job on a part-time basis he was being paid a salary of Rs.80,000/- per month ((UK

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. __3482______OF 2009 [Arising out of Special Leave Petition (Civil) No. 2997 of 2007] ORIENTAL INSURANCE CO. LTD. …APPELLANT VERSUS DEO PATODI & ORS. … RESPONDENTS WITH CIVIL APPEAL NO. _3492_______OF 2009 [Arising out of Special Leave Petition (Civil) No. 3807 of 2007] … Continue reading

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