Chhattisgarh HC Raises Crash-Death Compensation To ₹15,25,250 For Widow And Three Children, Adding ₹29,000

The claimants, the widow and three children of Lomesh Sahu, appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation awarded for his death in a road accident on 1 January 2021.

The Motor Accident Claims Tribunal had awarded Rs.14,96,250.

The claimants challenged the amount under the conventional heads; the insurer contended that the Tribunal had applied an excessive increase to those heads.

The High Court found that the Tribunal had awarded Rs.1,80,000 under the conventional heads, whereas Rs.2,09,000 was payable for four claimants.

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

In assessing compensation, National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, governs the conventional heads and their periodic enhancement; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, supplies principles relevant to deductions and multiplier-based computation; and Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, addresses consortium for eligible family members.

The Court left the Tribunal’s income assessment, one-fourth deduction, multiplier of 13, and future-prospects calculation unchanged, preserving the dependency award of Rs.13,16,250.

It recalculated the conventional heads as Rs.16,500 for loss of estate, Rs.16,500 for funeral expenses, and Rs.1,76,000 for consortium for four claimants, totalling Rs.2,09,000.

Since the Tribunal had allowed only Rs.1,80,000 under those heads, the total compensation required an increase of Rs.29,000.

The award was enhanced from Rs.14,96,250 to Rs.15,25,250, with the additional Rs.29,000 carrying interest at 6% per annum from the date of filing of the claim application until realization.

The remaining terms of the Tribunal’s award were left undisturbed, and the Registry was directed to communicate the enhancement to the claimants in Hindi.