MACT LAWYER: The SC enhances MACT compensation awarded, by Rs. 13,48,000/­-.

Supreme Court of India

Justice Indu Malhotra and Justice Sanjiv Khanna

The SC { Joginder Singh & Anr. v. ICICI Lombard General Insurance Company } enhances compensation awarded by the Courts below. It was held that the issue with respect to whether the Multiplier to be applied in the case of a bachelor, should be computed on the basis of the age of the deceased, or the age of the parents, is no longer res integra. This issue has been recently settled by a   three   Judge   bench   of   the SC  in  Royal   Sundaram Alliance   Insurance   Co.   Ltd.  v.  Mandala   Yadagari   Goud   & Ors.,  wherein it has been held  that the Multiplier has to be applied on the basis of the age of the deceased. 

It was further held that that the Courts below have failed to award Future Prospects @ 40% of the income of the deceased,   as   mandated   by   the   judgment   of   the Constitution Bench of SC in National Insurance Co. Ltd.  v. Pranay Sethi & Ors. It was also held that the Courts below have failed to award loss of estate @ Rs.15,000/­as per the judgment in Pranay Sethi (supra). It was further held that the SC  in Magma General Insurance Co. Ltd. v. Nanu Ram & Ors. has held that a sum of Rs. 40,000/­ is to be paid to each of the parents towards loss of consortium   on   the  death of a child. Accordingly, in view of above, the SC enhanced the compensation in the sum of Rs. 13,48,000/-. ­