After 58-Year-Old Cyclist’s Death, P&H HC Raises Widow And Son’s Compensation To Rs 8.22 Lakh, Adding 10% Future Prospects And Consortium For Both

Ram Kumar died after a Mahindra XUV struck his bicycle on 16 August 2019. His widow and son brought a claim under Section 166 of the Motor Vehicles Act, 1988.

The Motor Accident Claims Tribunal awarded them ₹7,18,000, with interest at 7.5% per annum. They appealed, seeking enhancement on the grounds that future prospects had not been included, consortium had been awarded only once, and funeral expenses were inadequate.

The deceased was 58½ years old and his income was assessed at ₹9,000 per month, based on minimum wages.

The claim was brought under Section 166 of the Motor Vehicles Act, 1988.

Under National Insurance Co. Ltd. v. Pranay Sethi, 2017 (4) RCR (Civil) 1009, future prospects must be added to the deceased’s established income; for a self-employed person or one on a fixed salary aged 50–60, the addition is 10%.

Under Magma General Insurance Co. Ltd. v. Nanu Ram, Civil Appeal No. 9581 of 2018, consortium includes spousal, parental and filial consortium, and eligible family members may receive compensation under that head.

Applying Pranay Sethi, the Court added 10% to the deceased’s annual income of ₹1,08,000, deducted one-third for personal expenses, and applied a multiplier of 9, resulting in loss of dependency of ₹7,12,800.

Applying Magma General, it awarded ₹40,000 to each claimant for loss of consortium, totalling ₹80,000.

It found the existing award for funeral expenses adequate and made no enhancement under that head.

The Insurance Company was directed to deposit the enhanced compensation within two months, and the Tribunal was directed to disburse it in accordance with its apportionment.