After 22-Year-Old Scrap Collector’s Death, P&H HC Raises Husband’s Compensation To Rs 16.82 Lakh, Applying One-Third Personal-Expense Deduction In Sole-Claimant Case

Rukhsar died in a road accident on 29 January 2019 involving a truck.

Her husband, Safi Mohammad, claimed compensation, and the Motor Accident Claims Tribunal, Panipat awarded ₹9,34,000 with interest at 6% per annum.

The Tribunal assessed compensation using minimum wages, but made no addition for future prospects and deducted one-half of the deceased’s income for personal and living expenses.

Safi Mohammad appealed, seeking enhancement, including a one-third deduction and higher amounts under the conventional heads.

In National Insurance Co. Ltd. v. Pranay Sethi, 2017 INSC 1068, the Supreme Court held that, for a self-employed person or one earning a fixed salary, future prospects are added at 40% where the deceased was below 40 years of age.

Sarla Verma v. Delhi Transport Corporation, 2009 (3) R.C.R. (Civil) 77, sets out standard deductions for personal and living expenses, including a one-third deduction for a married deceased with two to three dependants; it also provides for a different deduction where the deceased was a bachelor.

Relying on The New India Assurance Company Ltd. v. Ramesh Kanta Sharma, FAO-3411 of 2019, decided 24 February 2020, and Daya @ Dayawanti v. Arjun and Others, FAO-3236 of 2007, decided 17 August 2023, the Court applied a one-third deduction where the deceased was married but had only one dependent, distinguishing a married person from a bachelor.

The Court also applied Pranay Sethi to assess the conventional heads.

Rukhsar was 22 years old and her income was assessed at ₹8,000 per month, based on the minimum wages for 2019.

Applying Pranay Sethi, the Court added 40% for future prospects.

It held that a one-third deduction was appropriate: although the claimant was the sole dependent, Rukhsar was married and could not be treated like a bachelor for this purpose.

The Court found that the Tribunal’s amounts under the conventional heads were adequate in light of the accident date and Pranay Sethi.

It directed that the revised amount carry interest at 6% per annum from the date of filing of the claim petition until realization, and directed the insurer to deposit it with the Tribunal within two months.

The Tribunal was directed to disburse the amount to the appellant.