Conventional compensation heads must be enhanced by 10% every three years.

The appellants—the deceased’s wife, three minor children and mother—sought enhanced compensation for his death in a road accident on 29 December 2020.

The Motor Accident Claims Tribunal found that the accident resulted from the negligent driving of a lorry and awarded ₹30,02,000, including ₹27,72,000 for loss of dependency and ₹2,00,000 for consortium.

The claimants appealed under Section 173(1) of the Motor Vehicles Act, 1988, contending that the deceased’s income and compensation under the conventional heads had been undervalued.

1. Whether the Tribunal’s assessment of compensation for loss of dependency warranted interference in the absence of documentary evidence of the deceased’s asserted occupation and income.

2. Whether the compensation awarded for consortium, loss of estate and funeral expenses required enhancement.

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

Applying National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, the Court stated that compensation under the conventional heads is to be enhanced by 10% every three years.

The Court assessed whether the Tribunal’s awards under the relevant heads were consistent with that enhancement principle and whether the evidence justified revising loss of dependency.

The claimants asserted that the deceased worked as a head mestri and earned ₹30,000 per month, but produced no documentary evidence establishing his occupation or the claimed annual income.

The Court therefore declined to interfere with the Tribunal’s ₹27,72,000 award for loss of dependency.

It found that the conventional-head awards required enhancement under the Pranay Sethi principle: consortium was increased from ₹40,000 to ₹48,400 for each of the five claimants, making ₹2,42,000 in total; loss of estate and funeral expenses were each increased from ₹15,000 to ₹18,150.

These adjustments increased the total award by ₹48,300.

The appellants were held entitled to total compensation of ₹30,50,300, including enhanced compensation of ₹48,300, with interest at 6% per annum from the date of the claim petition until deposit.

The insurer was directed to deposit the enhanced amount with interest before the Tribunal within eight weeks; apportionment and disbursement were to follow the Tribunal’s directions.