Compensation was not reduced despite disputed dependency deductions and consortium where assessed income was low.

Bhagwat Singh Markam died from injuries sustained in a motor accident involving a Bolero insured by the appellant.

His widow, three minor children, parents and sister sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The Motor Accident Claims Tribunal awarded the claimants ₹23,34,326, assessing the deceased’s monthly income at ₹8,860, deducting one-fifth for personal expenses and applying a multiplier of 17.

The Insurance Company appealed under Section 173, challenging the quantum on the grounds that the sister was not a dependent, the deduction should have been one-fourth, and consortium should not have been awarded to her.

1. Whether the Tribunal should have deducted one-fourth, rather than one-fifth, of the deceased’s income towards personal and living expenses because the deceased’s sister was not a dependent.

2. Whether the award of consortium to the deceased’s sister warranted interference.

Sections 166 and 173 of the Motor Vehicles Act, 1988, respectively provide for a claim for compensation arising from a motor accident and an appeal against an award of the Claims Tribunal.

Compensation must be just and reasonable in light of the facts and circumstances of the case.

The Court acknowledged that the sister was shown as a claimant and that the insurer disputed her dependency. However, it considered the Tribunal’s assessment of monthly income at ₹8,860 to be on the low side, particularly in light of the evidence and the deceased’s family circumstances.

The deceased had left a young widow, three minor children and parents who were dependent on his income.

In that context, the Court declined to reduce the award by changing the personal-expense deduction from one-fifth to one-fourth.

It also found no basis to interfere with consortium awarded to the sister, considering the overall circumstances and that the compensation was not otherwise excessive.

The appeal was dismissed.