A bachelor’s income must be reduced by 50% for personal expenses when computing dependency compensation.

Sakthivel, a bachelor, died when his motorcycle collided with the rear of a lorry parked on the road.

His parents and sister sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The Tribunal found the lorry driver 80% negligent and Sakthivel 20% negligent.

It assessed his monthly income at ₹22,633, deducted one-third for personal expenses, and awarded ₹37,47,040 after applying the 20% contributory-negligence deduction.

The insurer appealed against the personal-expense deduction; the claimants cross-objected to the finding of 20% negligence against the deceased.

1. Whether the Tribunal was correct to deduct one-third, rather than 50%, of the deceased bachelor’s income towards personal and living expenses

2. Whether the Tribunal’s finding that the deceased was 20% contributorily negligent should be reduced

A claim for compensation for death may be brought under Section 166 of the Motor Vehicles Act, 1988; an appeal from the Tribunal’s award lies under Section 173, and a cross-objection may be filed under Order 41 Rule 22 of the Code of Civil Procedure

In assessing dependency compensation, National Insurance Co. v. Pranay Sethi, 2017 (2) TNMAC 601, was applied for adding 40% towards future prospects, and Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, for applying the multiplier of 18.

For the deceased bachelor, the Court applied a 50% deduction for personal and living expenses.

The award was also adjusted for the deceased’s contributory negligence.

The Court found that the eyewitness’s account and the lorry driver’s evidence supported the conclusion that the lorry had been stopped on the road and that the driver could not give a parking-light signal.

Although the record lacked a rough sketch, the Court considered that the deceased had collided with the parked lorry and reduced his contributory negligence from 20% to 10%, assigning 90% to the lorry driver.

On quantum, the Tribunal had treated the deceased as a bachelor but deducted only one-third for personal expenses.

The Court substituted a 50% deduction, while retaining the 40% addition for future prospects and multiplier of 18, resulting in dependency compensation of ₹34,22,088.

It left the other heads undisturbed and recalculated the total after the 10% negligence deduction.

The insurer was directed to deposit the modified amount, less any sum already deposited, within eight weeks, with liberty to recover it from the vehicle owner under the “pay and recover” direction.

The Tribunal’s apportionment and disbursement directions were maintained.