The Karnataka High Court has held that a second wife and her daughter are entitled to compensation under the Motor Vehicles Act if they were dependent on the deceased, observing that the concept of a “legal representative” under the statute cannot be confined to a rigid or technical definition based solely on the legality of a marital relationship.
The Division Bench of Justice Jayant Banerji and Justice Tara Vitasta Ganju enhanced the compensation awarded by the Motor Accident Claims Tribunal (MACT) by Rs 15,02,400 after taking into account the dependency of the deceased’s second wife and their minor daughter.
The Court relied on a Supreme Court precedent interpreting the expression “legal representative” under the Motor Vehicles Act and observed that the term is wider than its traditional understanding under personal laws. The Bench noted that a legal representative need not necessarily be limited to the wife, husband, parents or children of the deceased.
Any person who represents the estate of the deceased or suffers on account of the death of a victim in a motor vehicle accident is entitled to seek compensation under the beneficial provisions of the statute.
The case arose from a claim petition filed against the National Insurance Company Limited by the deceased’s first wife and mother following his death in a road accident caused by a vehicle insured with the company. During the proceedings, a claim was also advanced by the deceased’s second wife and their minor daughter.
While considering their entitlement, the High Court observed that the issue of formally proving the validity of the second marriage was not material for determining dependency and entitlement to compensation in the facts of the case.
The Bench emphasised that compensation under the Motor Vehicles Act was intended to provide a remedy to those who have suffered pecuniary loss and loss of dependency as a consequence of a fatal accident. It held that it is sufficient for a claimant to establish dependency on the deceased and the loss suffered due to the death. The Court reiterated that every legal representative who suffers because of the death of a person in a motor vehicle accident is entitled to seek compensation.
The High Court also examined the methodology adopted by the Tribunal for calculating loss of dependency. Referring to settled principles governing motor accident compensation claims, the Bench observed that the percentage of deduction towards the personal and living expenses of the deceased cannot be governed by a rigid formula. Such deductions must be assessed on the facts and circumstances of each case and cannot depend solely upon the nature of the relationship between the claimant and the deceased.
The Court further found that the MACT had erred in assessing the deceased’s notional monthly income at Rs 10,000. Noting that the standard notional income applicable for the year 2019 was Rs 14,000 per month and that there was no dispute regarding the deceased being 34 years of age at the time of the accident, the Bench recalculated the compensation payable under the relevant heads.
After reassessing the loss of dependency and considering the entitlement of all dependants, including the second wife and minor daughter, the High Court enhanced the award by Rs 15,02,400. It directed National Insurance Company Limited to pay the enhanced compensation along with interest at the rate of 9 per cent per annum to all four claimants.
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