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2016 (7) TMI 1576 - HC - Indian LawsCompensation on account of death caused by rash driving - enhanced income shown by dependent of deceased for claiming enhanced compensation - HELD THAT:- From the first three income-tax returns, it is obvious that the deceased did not show the income earned by these package tours of taxies to the Income Tax Department, but revealed the income of his salary only and when he passed away, his dependants without discerning the implications of such disclosure presented the incometax return for the year 2006-07 to the tune of ₹ 98,500/-, which was almost double than the last three income-tax returns filed by the deceased. Therefore, the income which might have been earned by the dependants out of these two cabs could not at all be taken into consideration for evaluating the compensation - It is for yet another reason that even after the death of such owner of vehicles, the income of the dependents out of these vehicles would not have lost and they would have continued to earn the income from these vehicles even after the death of Mr. Arya. Thus, only the average of first three income-tax returns would have been the base for evaluating the compensation. Such average income comes to ₹ 52,635/-. Looking to the status of the family, I would not like to deduct 1/4th towards the personal expenses, but it must have been 1/3rd and considering such standards, the total dependency come to ₹ 35,090/- and applying the multiplier of “16” thereon, the amount of compensation comes to ₹ 5,61,440/- - Again considering the financial status of the family, I further reduce the amount from ₹ 20,000/- to ₹ 10,000/- towards the loss of consortium. The amount awarded for the loss of love and affection is also reduced from ₹ 10,000/- to ₹ 5,000/-. However, the amount of ₹ 5,000/-, awarded for the funeral expenses, is left intact - This way the total compensation comes to ₹ 5,61,440 + 10,000 + 5000 + 5000 = 5,81,440/-. The quantum of compensation is reduced to the extent indicated - the appeal of the insurance company is hereby allowed.
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