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Self-Employed Deceased Aged Below 40 entitled to 40% Addition as Future prospects, MAC: SC

The court relied upon the pranay sethi and sarla verma case as the one of the deceased was 37 years old and self employed. Since, the deceased has two dependents, 1/3rd of the deceased income was deducted on account of personal and living expenses and 40% addition towards future prospects and multiplier is 15.

RAHUL SHARMA & ANR. V. NATIONAL INSURANCE COMPANY LTD. & ORS.

Civil Appeal No. 1769 Of 2021

May 07, 2021


The Hon’ble Chief Justice N. V. Ramana, Justice Surya Kant, Justice Aniruddha Bose decided the present appeal raised by the appellants, being aggrieved by the judgment passed by the Delhi High Court. The appellant parents met with an accident and the FIR was registered. The appellant further instituted a claim petition before the Motor Accidents Claims Tribunal under section 166 and 140 of the Motor Vehicles Act, 1988to grant compensation for the death of their parents.


The tribunal, while adjudicating the claim, determined the compensation to be Rs. 41, 55, 235. The tribunal relied upon the judgment of Sarla Verma V. Delhi Transport Corporation stating 50 % addition was included towards future prospects and the multiplier been taken as 15. Since, the deceased had two dependents, 1/3rd of the deceased’s income was deducted on account of personal and living expenses. The National Insurance Company, been held liable to pay compensation of Rs. 41, 55, 235 with an interest of 9% per annum from the date of filing of the claim petition.


The insurance company preferred an appeal against the award of the tribunal before the Delhi High Court; the High Court deducted 50% of income towards personal and living expenses. Also the deceased ineligible for the grant of future prospects as she was self employed. The appellant preferred the present appeal in the way of Special Leave Petition. In National Insurance Co. Ltd. V. Pranay Sethi clearly held that in case the deceased is self employed and below the age of 40, 40% addition would be made to their income as further prospects.


The court relied upon the pranay sethi and sarla verma case as the one of the deceased was 37 years old and self employed. Since, the deceased has two dependents, 1/3rd of the deceased income was deducted on account of personal and living expenses and 40% addition towards future prospects and multiplier is 15.


The total compensation is determined to be Rs. 38, 24, 890/- payable with interest of 9% per annum from the date of filing of the claim petition. The appeal is said to be disposed of.



Shantha Gopika R

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