A 50-year-old salaried deceased attracts 30% future prospects and a one-fourth deduction for personal expenses.

The claimants, the deceased Sivakumar’s wife, children and mother, sought compensation for his death in a road accident involving a tipper lorry on 11 September 2014.

The Tribunal found the lorry driver negligent and assessed the deceased’s monthly income at Rs.14,970, but deducted 50% for personal expenses and added 10% for future prospects, awarding Rs.14,89,426.

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement on those two components.

1. Whether the Tribunal erred in deducting 50%, rather than one-fourth, of the deceased’s income towards personal and living expenses

2. Whether the Tribunal erred in adding 10%, rather than 30%, towards future prospects

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Motor Accidents Claims Tribunal.

Under Sarla Verma v. Delhi Transport Corporation, the deduction for personal and living expenses is determined by the number of dependants; for four dependants, the appropriate deduction is one-fourth.

Under National Insurance Co. Ltd. v. Pranay Sethi, future prospects are added according to the deceased’s age and employment status; the Court applied a 30% addition in this case, given the deceased’s age of 50.

The Court found no dispute as to negligence or insurance coverage; the appeal concerned only the compensation calculation.

There were four claimants, so, applying Sarla Verma, the Tribunal should have deducted one-fourth rather than 50% from the deceased’s income.

The income of Rs.14,970 was supported by the pay certificate, and, applying Pranay Sethi to the deceased’s age of 50, the Court held that 30% should have been added for future prospects rather than 10%.

It recalculated loss of future income as Rs.22,76,937 and left the awards under the other heads undisturbed.

The Court modified the total compensation to Rs.24,81,937, with interest at 7.5% per annum from the date of the claim petition until deposit.

The insurer was directed to deposit the amount, less any amount already deposited, within six weeks; withdrawal was subject to the Tribunal’s directions and payment of any court fee due on the enhanced compensation.