Compensation enhanced through addition of future prospects, proper personal deductions, and loss of consortium awards.

The appellants, legal heirs of the deceased Kanhaiyalal Sone, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of the compensation awarded by the 2nd Additional Motor Accident Claims Tribunal, Raigarh.

The Tribunal, via an award dated 23/08/2018, had granted a total sum of Rs. 11,40,000/- to the claimants following the death of the deceased.

The appellants challenged the award on the grounds that the Tribunal failed to grant future prospects, applied an incorrect deduction ratio for personal expenses (1/3rd instead of 1/4th), and failed to award compensation for loss of consortium.

1. Whether the compensation awarded by the Tribunal requires enhancement through the inclusion of future prospects and loss of consortium.

2. Whether the Tribunal erred in its deduction for personal expenses and the application of non-pecuniary heads.

Section 173 of the Motor Vehicles Act, 1988, which provides the statutory right to appeal a claims tribunal’s award.

Established principles of motor accident law regarding "just compensation," specifically the requirement to add 40% to the annual income toward future prospects and the rule for deducting 1/4th for personal expenses when the number of dependents is between four and six.

The standard of awarding Rs. 40,000 per claimant for loss of consortium.

The Court reviewed the Tribunal’s assessment and determined that the compensation was inadequately calculated.

While the Court accepted the Tribunal’s determination of monthly income (Rs. 9,000) and the multiplier (15), it corrected the pecuniary calculations by adding 40% for future prospects (Rs. 43,200) and reducing the personal expense deduction from 1/3rd to 1/4th to reflect the number of dependents.

Regarding non-pecuniary heads, the Court deleted the award for "Love and Affection" (Rs. 50,000) and replaced it with a standardized "Loss of Consortium" award of Rs. 2,00,000 (calculated at Rs. 40,000 for each of the four eligible claimants).

This adjustment brought the total dependency loss and conventional heads in line with prevailing judicial standards.

The High Court directed Respondent No. 3 (the Insurance Company) to deposit the additional amount of Rs. 7,31,000/- within three months.

This additional sum shall carry an interest rate of 8% per annum from the date of filing the claim application (12/07/2016) until its realization.

All other conditions of the original award remained intact.