Rahul Sharma & Anr vs National Insurance Co. Ltd. & Ors. 2021 SCC OnLine SC 370 - Synopsis
Deyasini Das 11 Aug 2021

The parents of the appellant met with an accident while travelling in a vehicle, which was insured by respondent no. 1 during that time. As compensation for the death of both parents, the appellant filed two separate claims under Section 140 and 166 of the Motor Vehicles Act, 1988 before the Motor Accidents Claims Tribunal. While deciding the claim concerning appellant’s mother, the tribunal set the compensation to Rs. 41,55,235, including 50% addition towards future prospects, established on the dictum laid down in Sarla Verma v. Delhi Transport Corporation, (2009)6 SCC 121. The Delhi HC while deciding the appeal filed by the respondent no. 1 reduced the appellant’s mother’s compensation to Rs. 21,66,000. The court was of the opinion that the appellant’s mother was not eligible for the grant of future prospects, since she was self-employed and further held that 50% of her income had to be deducted towards living and personal expense. The appellant through a Special Leave petition approached the Supreme Court, impugning the modified order. The court while referring to the Constitution Bench decision in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, stated that in the case the deceased was self-employed and also below the age of 40, so 40% future prospect was awarded. In the instant case, the appellant’s mother was 37 years, thus the same 40% should be applicable. Further the court held that the High court had erred in deducting 50% as personal and living expense, based on the aforementioned precedent deduction for a married person with 2 dependents had to be 1/3rd. While disposing of the appeal, the Apex Court observed that the total payable compensation was  Rs. 38,24,890 with additional 9% interest payable per annum from the date of filing of the claim.










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