Conventional compensation heads attract 20% escalation six years after Pranay Sethi.

The claimants, the deceased Harisha’s wife, children and mother, sought compensation for his death in a road accident on 13 March 2023 involving a bus.

The Motor Accident Claims Tribunal partly allowed the claim, assessed compensation at ₹28,00,090 (rounded to ₹28,00,000), and attributed 10% contributory negligence to the deceased.

The claimants appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

They challenged the finding of contributory negligence, the income adopted for calculating loss of dependency, and the failure to increase conventional heads.

Section 173(1) of the Motor Vehicles Act, 1988 provides for an appeal against an award of a Claims Tribunal.

In assessing compensation, the Court applied the multiplier method, including future prospects and deduction for personal expenses, to calculate loss of dependency.

It relied on National Insurance Company v. Pranay Sethi, AIR 2017 SC 5157, for a 10% escalation in conventional heads for every three-year period.

The Court upheld the 10% contributory-negligence finding because the spot sketch and mahazar showed that the accident occurred in the middle of a 22-foot-wide road near a curve; the fact that the bus driver was charge-sheeted did not displace that finding.

For loss of dependency, it adopted the 2023 notional income of ₹16,250 per month, added 25% for future prospects, deducted one-fourth for personal expenses, and applied multiplier 13, resulting in ₹23,76,563.

Applying the 20% escalation to conventional heads, the Court recalculated consortium at ₹1,92,000, funeral expenses at ₹18,000 and loss of estate at ₹18,000, while including medical expenses of ₹2,70,090 in its final calculation.

The resulting total was ₹28,74,653, an increase of ₹74,653; after applying the deceased’s 10% contributory negligence, the payable enhancement was ₹67,188.

The claimants were awarded enhanced compensation of ₹67,188, with interest at 6% per annum from the date of the petition until realization.

The insurer was directed to deposit the amount within six weeks.

The enhanced sum was apportioned among the claimants in the ratio 50:20:20:10; the minor claimant’s share was to remain in fixed deposit until she attained majority.