Compensation under M V Act after death of son

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My son is died on 12 April 2015. Me, my wife and one daughter are dependent. My son was self employed but unmarried. He was 29 years old at the time of death. I have filed petition under section 166 M V Act for compensation and claim about 98 lakh. He declared 30 k per month income in his ITR and pay income tax also. Can I get 98 lakh as compensation?

Question from - Motor Accident

You may claim any amount as for compensation but must borne in mind that court will decide the actual compensation under the M V Act on the guidelines fixed by the supreme court in its catena of judgments. Self employed and even unemployed person is entitled to get compensation under M V Act ( Motor Vehicle Act).

Standard deduction shall be applied in case of death because dependents are entitled to get compensation to the extent which deceased might spent upon them which remained after his personal needs.

In Reshma Kumari vs Madan mohan [2013] 9 SCC;  it is held the supreme court that bachelor person would tend to spent more on his personal needs and living lifestyle so 50% shall be justified deduction in case of death of bachelor person. In Santosh Devi vs National insurance Co. ltd [2012] 6 SCC held by the supreme court that multiplier should be applied after deciding compensation on monthly basis, age of deceased is the sole parameter in deciding multiplier. It can not be possible to fix multiplier on each and every case, so one common formula should be devise for it.

In Reshma Kumari case, supreme court has fixed formula for multiplier. Multiplier of 17 has been fixed by the court if age of deceased was between 26 to 30 years. In your case 17 multiplier shall be applied.

Future prospect is also a ground for calculating calculation. In Rajesh vs Rajveer Singh [2013] 9 SCC; held by the court that if the deceased is below 40 years of age there must be addition of  50% to the actual income of the deceased.

According to above discussion you may get monthly income = monthly income of deceased + addition of 50% as future prospect (30000 + 15000) = 45000; and subtraction of standard deduction of 50% ( 50% of 45000) =  22500 per month. Monthly income 22500 shall be multiplied by 12 to get annual income i.e. 270000.

Annual income shall be multiplied by multiplier 17 to get net compensation i.e. Rs. 4590000. You may get Rs. 4590000 as compensation.

Image courtesy : google.com 

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