Compensation enhanced by ₹50,000 for inadequate amounts awarded under conventional heads.

Mathura Prasad Kaushik died in a road accident on 27 April 2015. His widow, Smt. Chitrarekha Kaushik, and two children instituted a motor accident compensation claim.

The 3rd Additional Motor Accident Claims Tribunal, Bilaspur, by award dated 12 February 2021 in MACT No. 398/2015, awarded total compensation of ₹37,73,000, comprising loss of dependency, treatment expenses, funeral expenses, loss of estate, and loss of consortium.

The claimants preferred an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, principally contending that the amounts awarded under the conventional heads were inadequate.

The delay of 262 days in filing the appeal was condoned, and the appeal was admitted and heard finally with the consent of the parties.

Whether the compensation awarded by the Claims Tribunal under the conventional heads was inadequate and required enhancement.

Whether the claimants were entitled to an enhanced total compensation and interest on the additional amount.

The Court applied Section 173 of the Motor Vehicles Act, 1988, governing appeals against motor accident claims awards.

For computation of compensation, it relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, concerning standardized compensation under conventional heads; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, concerning the principles for assessing loss of dependency; and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 1305, concerning compensation for loss of consortium to eligible family members.

Compensation must be just and reasonable, and amounts under conventional heads are to be assessed consistently with the principles laid down in these precedents.

The Court accepted the Tribunal’s assessment of the deceased’s monthly income at ₹23,463 and did not interfere with the award of ₹31,73,000 towards loss of dependency or ₹5,00,000 towards treatment expenses.

However, it found that the Tribunal had awarded only ₹1,00,000 under the conventional heads, whereas the claimants were entitled to appropriate amounts for funeral expenses, loss of estate, and loss of consortium in light of Pranay Sethi and Magma General Insurance.

The Court accordingly re-computed funeral expenses at ₹15,000, loss of estate at ₹15,000, and loss of consortium at ₹1,20,000, resulting in total compensation of ₹38,23,000.

Since ₹37,73,000 had already been awarded, the enhancement was limited to ₹50,000.

The enhanced amount was directed to carry interest at 6% per annum from the date of filing of the claim application until realization. All other terms and conditions of the Tribunal’s award were maintained.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi, with assistance from paralegal workers where necessary.