Judgment:
G. Radhakrishna Rao, J.
1. Having been aggrieved by the order and decree dated 16th June 1989 passed in O.P. No. 319 of 1988 on the file of the Motor Accidents Claims Tribunal, Visakhapatnam awarding a total compensation of Rs. 1,50,000/- for the death of one Molloti Sooribabu, the husband of the first petitioner and the father of petitioners 2 and 3, in a motor accident occurred on 18-4-1988 underneath the Vijayaramarajupeta Railway over-bridge on the road leading to Chodavaram from Anakapalli, the Insurance Company has preferred this appeal.
2. Sri Kota Subba Rao, learned Counsel appearing on behalf of the Insurance Company, has contended that the compensation awarded by the lower tribunal is on the high side and though the maximum liability of the insurance company is Rs. 1,50,000/- the lower tribunal has granted the entire amount of Rs. 1,50,000/-.
3. The deceased is stated to be aged 30 years at the time of his death. His earning capacity was estimated at Rs. 500/- per month and Rs. 6,000/- per year and applying a multiplier of 30, the lower tribunal arrived at the figure Rs. 1,80,000/-. But in view of the uncertainities in life 20% of the said amount was deducted and arrived at the amount Rs. 1,44,000/- and towards loss of love and affection and loss of consortium an amount of Rs. 6,000/- was awarded. As the death is instantaneous and also taking into account. The circumstances of this particular case, I feel that petitioners 1 to 3 are entitled to Rs. 10,000/- under the two heads claimed by them. The method of deducting 20% from the amount arrived at by the lower tribunal after applying 30 multiplier is not correct. The lower tribunal has not applied correct multiplier. In Kerala State Road Transport Corporation v. Mrs. Susamma Thomas, 1994(1) ALT (SC) 1 the Supreme Court has laid down certain guidelines with regard to applying multiplier. According to the guidelines given by the Supreme Court, the appropriate multiplier that can be applied in this case is 16 but not 30. The lower tribunal estimated the loss of dependency at Rs. 500/- per month. The deceased is stated to be the owner of a Killi Shop. Considering the nature of business the deceased was doing, I think that the loss of dependency can be enhanced to Rs. 600/- per month, and the annual dependency would be Rs. 7,200/-. If we apply a multiplier of 16, the amount would come to Rs. 1,15,200/-, which can be rounded of to Rs.l,15,000/-. The 1st petitioner is the wife of the deceased and petitioners 2 and 3 are their minor children. So an amount of Rs. 10,000/-, as already stated above, can be granted towards loss of consortium and also loss of love and affection. Thus the total amount that can be awarded comes to Rs. 1,25,000/-. So the amount granted by the lower tribunal is reduced to Rs. 1,25,000/-. Out of this amount the 4th petitioner-mother of the deceased is entitled to Rs. 25,000/-. The 1st petitioner- wife is entitled to Rs. 50,000/- and each of the two minor children, (viz., petitioners 2 and 3), is entitled to Rs. 25,000/-. The above amount of compensation shall carry interest at the rate of 12% p.a. from the date of filing of the petition till the date of payment. The minors' share of compensation shall be invested in a Bank as per the directions of the lower tribunal.
4. The C.M.A. is accordingly allowed in part. No costs.