JUDGMENT : 1. The appeal is preferred by the appellant-Insurance Company against the Judgment and Decree dated 04.03.2005 made in M.A.C.T.O.P. No.1605 of 2003 on the file of the Dharmapuri Motor Accident Claims Tribunal (I Additional District Court), Krishnagiri. 2. The background facts in a nutshell, are, as follows:- On 05.10.2002, at about 10.00 a.m., the deceased M.Venkatesan met with motor vehicle accident. He was proceeding in a TVS 50 moped, bearing Registration No.TN-29-B-3200 as pillion rider from Nagampatti in Krishnagiri, when he was nearing Krishnagiri-Chennai Byepass Junction Road and opposite to Murugesan Workshop, a lorry bearing Registration No.TN-01-D-0529, belonging to the fourth respondent herein, driven by its driver, in a rash and negligent manner and also at high speed and suddenly hit against the moped. Due to the said impact, the left side wheel of the said lorry ran over the head of the deceased and died on the spot. The claimants are the parents and sister of the deceased. They claimed a sum of Rs.10,00,000/- as compensation before the Tribunal. The said lorry was insured with the appellant-Insurance Company, who resisted the claim. On pleadings, the Tribunal framed the following issues:- "1. Whether the accident had occurred due to the rash and negligent driving of the driver of lorry? 2. Whether the claimants are entitled to Rs.10,00,000/-? 3. To what relief the claimants are entitled?" After considering the oral and documentary evidence, the Tribunal held that the accident had occurred only due to the rash and negligent driving of the driver of the lorry and awarded a compensation of Rs.5,03,500/- with interest at the rate of 9% per annum from the date of petition till the date of payment and the details of the same are as under:- Loss of income to the family Rs.4,86,000/- Loss of love and affection Rs. 10,000/- Loss of estate Rs. 2,500/- Funeral expenses Rs. 5,000/- ------------------ Total... Rs. 5,03,500/- ------------------ Aggrieved by that award, the appellant-Insurance Company has filed the present appeal. 3. Learned counsel appearing for the appellant-Insurance Company has questioned only the quantum of compensation awarded by the Tribunal by contending that the amount awarded by the Tribunal is excessive, exorbitant, without basis and justification. 2,500/- Funeral expenses Rs. 5,000/- ------------------ Total... Rs. 5,03,500/- ------------------ Aggrieved by that award, the appellant-Insurance Company has filed the present appeal. 3. Learned counsel appearing for the appellant-Insurance Company has questioned only the quantum of compensation awarded by the Tribunal by contending that the amount awarded by the Tribunal is excessive, exorbitant, without basis and justification. He further submits that since the deceased was a bachelor, instead of taking the age of the mother for adopting the multiplier, the Tribunal wrongly taken the age of the deceased and adopted the multiplier of 18'. He further submitted that the interest awarded by the Tribunal at rate of 9% per annum is on the higher side. Therefore, the award passed by the Tribunal is not in accordance with law and the same has to be set aside. 4. Learned counsel appearing for the respondents 1 to 3/claimants submitted that the Tribunal had considered all the relevant materials and evidence on record and came to the right conclusion and awarded a just, fair and reasonable compensation. Hence, the order of the Tribunal is in accordance with law and the same has to be confirmed. 5. Heard the learned counsel on either side and perused the materials available on record. On the side of the respondents 1 to 3/claimants P.Ws.1 and 2 were examined and documents Exs.P.1 to P.9 were marked. On the side of the appellant-Insurance Company, no one was examined and no document was marked to substantiate their claim. P.W.1 is the father of the deceased. P.W.2 Gopinath is an eye witness to the accident. Ex.P.1 is the copy of First Information Report. Ex.P.2 is the copy of Post mortem report. Ex.P.3 is the copy of Motor Vehicle Inspector's report. Ex.P.4 is the driving licence of the two wheeler rider. Ex.P.5 series is the certificate of the deceased. Ex.P.6 is the appointment order of the deceased. Ex.P.7 is the copy of Insurance Policy. Ex.P.8 is the copy of registration certificate of the lorry. Ex.P.9 is the licence of the deceased. After considering the above oral and documentary evidence, the Tribunal had given a categorical finding that the accident had occurred only due to the rash and negligent driving driver of the lorry. The finding is based on valid materials and evidence. 6. In the case of SARLA VERMA AND OTHERS VS. Ex.P.9 is the licence of the deceased. After considering the above oral and documentary evidence, the Tribunal had given a categorical finding that the accident had occurred only due to the rash and negligent driving driver of the lorry. The finding is based on valid materials and evidence. 6. In the case of SARLA VERMA AND OTHERS VS. DELHI TRANSPORT CORPORATION AND ANOTHER reported in (2009) 4 MLJ 997, the Apex Court has considered the relevant factors to be taken into consideration before awarding compensation and held as follows:- "7. Before considering the questions arising for decision, it would be appropriate to recall the relevant principles relating to assessment of compensation in cases of death. Earlier, there used to be considerable variation and inconsistency in the decisions of Courts Tribunals on account of some adopting the Nance method enunciated in Nance V. British Columbia Electric Rly. Co. Ltd. (1951) AC 601 and some adopting the Davies method enunciated in Davies V. Powell Duffryn Associated Collieries ltd., (1942) AC 601. The difference between the two methods was considered and explained by this Court in General Manager, Kerala State Road Transport Corporation Vs. Susamma Thomas AIR 1994 SC 1631 : (1994) 2 SCC 176 . After exhaustive consideration, this Court preferred the Davies method to Nance method. We extract below the principles laid down in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra). "In fatal accident action, the measure of damage is the pecuniary loss suffered and is likely to be suffered by each dependent as a result of the death. After exhaustive consideration, this Court preferred the Davies method to Nance method. We extract below the principles laid down in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra). "In fatal accident action, the measure of damage is the pecuniary loss suffered and is likely to be suffered by each dependent as a result of the death. The assessment of damages to compensate the dependants is beset with difficulties because from the nature of things, it has to take into account many imponderables, e.g., the life expectancy of the deceased and the dependants, the amount that the deceased would have earned during the remainder of his life, the amount that he would have contributed to the dependants during that period, the chances that the deceased may not have live or the dependants may not live up to the estimated remaining period of their life expectancy, the chances that the deceased might have got better employment or income or might have lost his employment or income altogether." " The manner of arriving at the damages is to ascertain the net income of the deceased available for the support of himself and his dependants, and to deduct therefrom such part of his income as the deceased was accustomed to spend upon himself, as regards both self-maintenance and pleasure, and to ascertain what part of his net income the deceased was accustomed to spend for the benefit of the dependants. Then that should be capitalised by multiplying it by a figure representing the proper number of year’s purchase." "The multiplier method involves the ascertainment of the loss of dependency or the multiplicand having regard to the circumstances of the case and capitalizing the multiplicand by an appropriate multiplier. The choice of the multiplier is determined by the age of the deceased (or that of the claimants whichever is higher) and by the calculation as to what capital sum, if invested at a rate of interest appropriate to a stable economy, would yield the multiplicand by way of annual interest. In ascertaining this, regard should also be had to the fact that ultimately the capital sum should also be consumed-up over the period for which the dependency is expected to last." "It is necessary to reiterate that the multiplier method is logically sound and legally well-established. In ascertaining this, regard should also be had to the fact that ultimately the capital sum should also be consumed-up over the period for which the dependency is expected to last." "It is necessary to reiterate that the multiplier method is logically sound and legally well-established. There are some cases which have proceeded to determine the compensation on the basis of aggregating the entire future earnings for over the period the life expectancy was lost, deducted a percentage therefrom towards uncertainties of future life and award the resulting sum as compensation. This is clearly unscientific. For instance, if the deceased was, say 25 years of age at the time of death and the life expectancy is 70 years, this method would multiply the loss of dependency for 45 years — virtually adopting a multiplier of 45 — and even if one-third or one-fourth is deducted therefrom towards the uncertainties of future life and for immediate lump sum payment, the effective multiplier would be between 30 and 34. This is wholly impermissible." In UP State Road Transport Corporation V. Trilok Chandra (1996) 4 SCC 362 , this Court, while reiterating the preference to Davies method followed in General Manager, Kerala State Road Transport Corporation V. Susamma Thomas (supra), stated thus: "In the method adopted by Viscount Simon in the case of Nance also, first the annual dependency is worked out and then multiplied by the estimated useful life of the deceased. This is generally determined on the basis of longevity. But then, proper discounting on various factors having a bearing on the uncertainties of life, such as, premature death of the deceased or the dependent, remarriage, accelerated payment and increased earning by wise and prudent investments, etc., would become necessary. It was generally felt that discounting on various imponderables made assessment of compensation rather complicated and cumbersome and very often as a rough and ready measure, one-third to one-half of the dependency was reduced, depending on the life span taken. That is the reason why courts in India as well as England preferred the Davies formula as being simple and more realistic. However, as observed earlier and as pointed out in Susamma Thomas case, usually English courts rarely exceed 16 as the multiplier. Courts in India too followed the same pattern till recently when tribunals/courts began to use a hybrid method of using Nance method without making deduction for imponderables..... However, as observed earlier and as pointed out in Susamma Thomas case, usually English courts rarely exceed 16 as the multiplier. Courts in India too followed the same pattern till recently when tribunals/courts began to use a hybrid method of using Nance method without making deduction for imponderables..... Under the formula Advocated by Lord Wright in Davies, the loss has to be ascertained by first determining the monthly income of the deceased, then deducting therefrom the amount spent on the deceased, and thus assessing the loss to the dependants of the deceased. The annual dependency assessed in this manner is then to be multiplied by the use of an appropriate multiplier"(emphasis supplied) 7. In the case of SYED BASHEER AHAMED AND OTHERS VS. MOHAMMED JAMEEL AND ANOTHER reported in (2009) 2 Supreme Court Cases 225, the Apex Court has held as follows:- "13. Section 168 of the Act enjoins the Tribunal to make an award determining “the amount of compensation which appears to be just”. However, the objective factors, which may constitute the basis of compensation appearing as just, have not been indicated in the Act. Thus, the expression “which appears to be just” vests a wide discretion in the Tribunal in the matter of determination of compensation. Nevertheless, the wide amplitude of such power does not empower the Tribunal to determine the compensation arbitrarily, or to ignore settled principles relating to determination of compensation. 14. Similarly, although the Act is a beneficial legislation, it can neither be allowed to be used as a source of profit, nor as a windfall to the persons affected nor should it be punitive to the person(s) liable to pay compensation. The determination of compensation must be based on certain data, establishing reasonable nexus between the loss incurred by the dependants of the deceased and the compensation to be awarded to them. In a nutshell, the amount of compensation determined to be payable to the claimant(s) has to be fair and reasonable by accepted legal standards. 15. In Kerala SRTC v. Susamma Thomas2, M.N. Venkatachaliah, J. (as His Lordship then was) had observed that: (SCC p.181, para 5) “5. … The determination of the quantum must answer what contemporary society ‘would deem to be a fair sum such as would allow the wrongdoer to hold up his head among his neighbours and say with their approval that he has done the fair thing’. … The determination of the quantum must answer what contemporary society ‘would deem to be a fair sum such as would allow the wrongdoer to hold up his head among his neighbours and say with their approval that he has done the fair thing’. The amount awarded must not be niggardly since the ‘law values life and limb in a free society in generous scales’.” At the same time, a misplaced sympathy, generosity and benevolence cannot be the guiding factor for determining the compensation. The object of providing compensation is to place the claimant(s), to the extent possible, in almost the same financial position, as they were in before the accident and not to make a fortune out of misfortune that has befallen them. 18. The question as to what factors should be kept in view for calculating pecuniary loss to a dependant came up for consideration before a three-Judge Bench of this Court in Gobald Motor Service Ltd. v. R.M.K. Veluswami4, with reference to a case under the Fatal Accidents Act, 1855, wherein, K. Subba Rao, J. (as His Lordship then was) speaking for the Bench observed thus: (AIR p.1) “In calculating the pecuniary loss to the dependants many imponderables enter into the calculation. Therefore, the actual extent of the pecuniary loss to the dependants may depend upon data which cannot be ascertained accurately, but must necessarily be an estimate, or even partly a conjecture. Shortly stated, the general principle is that the pecuniary loss can be ascertained only by balancing on the one hand the loss to the claimants of the future pecuniary benefit and on the other any pecuniary advantage which from whatever source comes to them by reason of the death, that is, the balance of loss and gain to a dependant by the death must be ascertained.” 19. Taking note of the afore extracted observations in Gobald Motor Service Ltd. in Susamma Thomas it was observed that: (Susamma Thomas case, SCC p.182, para 9) “9. Taking note of the afore extracted observations in Gobald Motor Service Ltd. in Susamma Thomas it was observed that: (Susamma Thomas case, SCC p.182, para 9) “9. The assessment of damages to compensate the dependants is beset with difficulties because from the nature of things, it has to take into account many imponderables e.g. the life expectancy of the deceased and the dependants, the amount that the deceased would have earned during the remainder of his life, the amount that he would have contributed to the dependants during that period, the chances that the deceased may not have lived or the dependants may not live up to the estimated remaining period of their life expectancy, the chances that the deceased might have got better employment or income or might have lost his employment or income altogether.” 20. Thus, for arriving at a just compensation, it is necessary to ascertain the net income of the deceased available for the support of himself and his dependants at the time of his death and the amount, which he was accustomed to spend upon himself. This exercise has to be on the basis of the data, brought on record by the claimant, which again cannot be accurately ascertained and necessarily involves an element of estimate or it may partly be even a conjecture. The figure arrived at by deducting from the net income of the deceased such part of income as he was spending upon himself, provides a datum, to convert it into a lump sum, by capitalising it by an appropriate multiplier (when multiplier method is adopted). An appropriate multiplier is again determined by taking into consideration several imponderable factors. Since in the present case there is no dispute in regard to the multiplier, we deem it unnecessary to dilate on the issue." After considering the principles enunciated in the judgments cited supra, let me consider the facts of the present case. 8. At the time of the accident, the deceased M.Venkatesan was aged about 26 years. As per Ex.P.5, Certificates also, the age of the deceased was 26 years at the time of the accident. Therefore, the Tribunal had fixed the age of the deceased as 26 years at the time of accident. P.W.1, the father, in his evidence stated that the deceased was working as Wireman and also doing seasonal business and was earning a sum of Rs.10,000/- per month. Therefore, the Tribunal had fixed the age of the deceased as 26 years at the time of accident. P.W.1, the father, in his evidence stated that the deceased was working as Wireman and also doing seasonal business and was earning a sum of Rs.10,000/- per month. He also marked Ex.P.6, appointment order of the deceased and Ex.P.9, licence of the deceased. In respect of the monthly income, there is no concrete evidence available to show that the deceased was earning a sum of Rs.10,000/- per month. Therefore, as per Minimum Wages Act, the Tribunal had fixed the notional income at Rs.3,000/- per month and determined the annual income at Rs.36,000/-. The Tribunal, after taking into consideration, the age of the deceased was 26 years and also following Schedule II of the Motor Vehicles Act, 1988, adopted the multiplier of 18' and arrived at a loss of income at Rs.6,48,000/-. Out of the said sum, ¼th of Rs.1,62,000/-(Rs.6,48,000/- x ¼) was deducted towards his personal expenses and the balance sum of Rs.4,86,000/- (Rs.6,48,000/- - Rs.1,62,000/-) was taken as the contribution of the deceased to his family. Therefore, the Tribunal awarded Rs.4,86,000/- towards loss of income to the family. There is no dispute regarding the monthly income as well as annual income fixed by the Tribunal. The dispute raised by the learned counsel appearing for the appellant-Insurance Company is that the Tribunal ought not to have deducted 1/4th towards personal expenses and the Tribunal should take into consideration the age of the parents for adopting the multiplier instead of taking the age of the deceased. Considering the age of the mother as 47 years, the correct multiplier that should be adopted in this case is 15' instead of 18'. There is no serious dispute regarding the same. If multiplier 15' is adopted and 1/3rd is deducted towards personal expenses of the deceased, the loss of income works out to Rs.3,60,000/- (Rs.3,000 x 12 x 15 x 1/3) as against Rs.4,86,000/- awarded by the Tribunal. The Tribunal has awarded a sum of Rs.10,000/- towards loss of love and affection. The parents lost their son and the sister lost their brother. Considering the facts and circumstances of the case, the amount awarded under this head is very low and it is reasonable to award a sum of Rs.20,000/- (each Rs.10,000/-) under this head as against Rs.10,000/- awarded by the Tribunal. The parents lost their son and the sister lost their brother. Considering the facts and circumstances of the case, the amount awarded under this head is very low and it is reasonable to award a sum of Rs.20,000/- (each Rs.10,000/-) under this head as against Rs.10,000/- awarded by the Tribunal. The Tribunal has awarded a sum of Rs.2,500/- towards loss of estate. Hence, the amount awarded under this head is very low and it is reasonable to award a sum of Rs.5,000/- as against Rs.2,500/- awarded by the Tribunal. The Tribunal has awarded a sum of Rs.5,000/- towards funeral expenses. Considering the facts and circumstances of the case, it would be reasonable to award a sum of Rs.10,000/-towards funeral expenses as against Rs.5,000/- awarded by the Tribunal. The Tribunal has not awarded any sum towards transport expenses. Considering the facts and circumstances of the case, it would be reasonable to award a sum of Rs.5,000/-towards transport expenses. The Tribunal has awarded interest at the rate of 9% per annum from the date of petition till the date of realisation. The accident occurred on 05.10.2002. Keeping in view the prevailing rate of interest at the time of the accident and the date of award, I feel that the rate of interest awarded by the Tribunal is on the higher side and the same is reduced to 7.5%. The details of the modified compensation as per the above discussion are as under:- Loss of income to the family Rs.3,60,000/- Loss of love and affection Rs.10,000/- each Rs. 30,000/- Loss of estate Rs. 5,000/- Funeral expenses Rs. 10,000/- Transport expenses Rs. 5,000/- ------------------ Total...Rs. 4,10,000/- ------------------ Therefore, the claimants are entitled to the modified compensation of Rs.4,10,000/- with interest at the rate of 7.5% per annum from the date of petition. 9. The appellant-Insurance Company is directed to deposit the modified compensation of Rs.4,10,000/- with interest at the rate of 7.5% per annum, less the amount, if any, already deposited, within a period of eight weeks from the date of receipt of a copy of this order. On such deposit, the claimants are permitted to withdraw their respective shares as apportioned by the Tribunal, after adjusting the amount, if any, already withdrawn on making proper application. 10. With the above modification, the Civil Miscellaneous Appeal is disposed of. No costs. Consequently, connected Miscellaneous Petition is closed.