The deceased, XYZ was pursuing B.Tech. 3rd year from an Engineering Institute. XYZ had lost his life in a motor vehicle accident which occurred on 19th June, 2011 at 10.40 A.M. near Haridwar. The Motor Accident Claims Tr

In the present given case, the compensation for death of the deceased student is calculated on the basis of the Theory of Human Life Value. HLV can be defined as the capitalized value of the net future earnings of an individual. It is the probable income of the insured person or the total income then the person is likely to earn during the remaining part of working life. E.g. A person aged 24 will work till 60 years of age. If he is expected to earn ₹90 lakhs throughout life, then his HLV is ₹90 lakhs. To calculate HLV, it is necessary to make provision for important events in one's dependents' lives. It is then necessary to calculate present household expenses, integrate the effect of inflation on expenses, and then to find out the current value of personal expenses, taking into account the current value of current liabilities and medical expenses. In the present case the HLV is computed for deceased XYZ by the Court on the same grounds. The Claims Tribunal assumed the minimum income of the deceased as ₹25,000/- per month, deducted ₹2500/- towards liability of the income tax, deducted 50% towards personal and living expenses and applied a multiplier of 14 as per the age of the deceased' mother (41 years) and computed the loss of dependency as ₹18,90,000/-. The Claims Tribunal further added a sum of ₹35,000 towards loss of love and affection ₹15000 for funeral expenses and ₹10,000/- towards loss of estate. However the Insurance Company repudiated the claim pointing out the amount is not fair and needs to be taken on lower compensation amounts. But, the tribunal repudiated the claim of the company and has directed the compensation as per the figures arrived at by the Tribunal.