An unmarried deceased supporting three dependants attracts a one-third deduction for personal expenses.

The appellants, the mother and two minor siblings of the deceased, challenged the Claims Tribunal’s award of Rs.14,81,200 for the death of 19-year-old Amrit Lal in a road accident on 19 November 2021.

The Tribunal assessed his monthly income at Rs.7,000. The claimants sought enhancement, arguing that the applicable minimum wage was Rs.9,280 per month and that compensation under conventional heads was inadequate. The insurer objected that, as the deceased was unmarried, one-half rather than one-third should be deducted for personal and living expenses

Whether the deceased’s monthly income should be assessed at the applicable minimum wage of Rs.9,280, rather than Rs.7,000, and compensation under conventional heads enhanced.

Whether one-half should be deducted for the deceased’s personal and living expenses because he was unmarried, rather than the one-third deduction applied by the Tribunal.

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

In assessing compensation, the Court relied on Sarla Verma & Ors. v. Delhi Transport Corporation & Ors., (2009) 6 SCC 121; National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors., (2018) 18 SCC 130.

Applying those authorities, the Court used a 40% addition for future prospects, multiplier 18, and conventional-head amounts totalling Rs.1,65,000.

It also held that a one-third deduction was appropriate in this case, given the three claimants who depended on the deceased.

The claimants’ assertion that the deceased earned Rs.20,000 per month was unsupported by documents. The Court therefore assessed income by reference to the Chhattisgarh minimum-wage notification for unskilled labour, fixing it at Rs.9,280 per month.

It retained the one-third deduction because the deceased left three claimants, including his mother and two minor siblings, and rejected the insurer’s request for a one-half deduction.

Applying a 40% future-prospects addition, multiplier 18, and enhanced conventional-head amounts, the Court calculated total compensation of Rs.20,35,848.

The remaining terms of the Tribunal’s award were left unchanged.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi Devanagari, with paralegal assistance if required.