New Delhi, October 31: A five-judge constitution bench headed by Chief Justice Dipak Misra said that while determining the income, an addition of 50 per cent of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made.
The addition should be 30 per cent, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15 per cent. Actual salary should be read as actual salary less tax. The bench fixed the percentage of salary or income of a self-employed and a person working in private sector which would be computed under the head of 'future prospect' for granting compensation to the dependents.
In case the deceased was self-employed or on a fixed salary, an addition of 40 per cent of the established income should be the warrant where the deceased was below the age of 40 years. An addition of 25 per cent where the deceased was between the age of 40 to 50 years and 10 per cent where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component.
The determination of income while computing compensation has to include future prospects so that the method comes within the ambit and sweep of just compensation as postulated under the provision of the Motor Vehicle Act.
The court also fixed the amount to be paid to the dependents of road accident victims under heads such as loss of consortium and funeral expense and said that there would be 10 per cent raise in the amount after every three years. Reasonable figures on conventional heads, namely, loss of estate, loss of consortium and funeral expenses should be Rs 15,000, Rs 40,000 and Rs 15,000 respectively. The aforesaid amounts should be enhanced at the rate of 10 per cent in every three years.
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