A deceased aged 49 is entitled to 40% future prospects in computing compensation.

Sakina Salimbhai Khatri died in a collision between a Jeep and a luxury bus on 20 May 2008.

Her husband and children sought compensation.

The Motor Accident Claims Tribunal assessed her income at Rs.1,98,007, applied a multiplier of 13, and awarded Rs.17,38,561, without adding future prospects.

The claimants appealed; the insurer had not appealed the award.

Whether the claimants were entitled to an addition for future prospects when calculating compensation for Sakina Khatri’s death

Whether the Tribunal’s award should be enhanced by recalculating dependency loss and the amounts under conventional heads

The Court applied the Supreme Court’s decision in National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, on adding future prospects to income when calculating compensation for death in a motor accident, and on the amounts payable under conventional heads.

In applying that decision, the Court treated a 40% addition as appropriate for the deceased, aged 49, and applied a one-third deduction for personal expenses and a multiplier of 13.

The Tribunal’s award did not include future prospects. The Court found no basis to uphold that omission in light of Pranay Sethi.

It added 40% to the deceased’s assessed income of Rs.1,98,007, deducted one-third for personal expenses, and applied the multiplier of 13, resulting in dependency compensation of Rs.21,45,078.

It also recalculated consortium, loss of estate, and funeral expenses, arriving at total compensation of Rs.23,40,078—Rs.6,01,517 more than the Tribunal’s award.

The Insurance Company was directed to deposit the enhanced amount within ten weeks of receiving the order, for disbursement to the claimants by NEFT/RTGS after verification.