Dependency for personal expenses is determined by the number of dependents at the time of accident.

The Appellant Insurance Company challenged the award dated 04th August 2015 passed by the MACT, Rohini, which granted Rs. 51,83,640/- with 9% interest to the respondents following a motor accident.

The deceased was an Assistant Manager in a private firm.

The Appellant contested the calculation of notional income, the 1/4th deduction for personal expenses (arguing it should be 1/3rd as the dependent mother died during proceedings), and the 50% grant for future prospects.

1. Whether the deduction for personal expenses should be reduced from 1/4th to 1/3rd due to the death of a dependent during the pendency of the claim.

2. Whether variable perks like mobile and vehicle allowances should be included in the notional income.

3. Whether future prospects of 50% are applicable to a deceased employee in a private company under the Pranay Sethi guidelines.

The Court applied the Supreme Court’s ruling in Kirti v. Oriental Insurance Company (2021), establishing that legal liabilities crystallize at the time of the accident and subsequent death of a dependent does not reduce compensation.

It relied on National Insurance Co. Ltd. v. Pranay Sethi (2017) for the standardization of future prospects and conventional heads.

Further, it followed United India Insurance Co. Ltd. v. Satinder Kaur (2021) regarding the impermissibility of granting "loss of love and affection" alongside "loss of consortium".

The Court rejected the insurer’s plea to increase the personal expense deduction, reasoning that dependency is determined on the date of the accident; since the mother was alive then, 1/4th deduction for four dependents was proper.

Regarding income, the Court agreed with the Appellant that "variable perks" (mobile, vehicle maintenance, medical, and bonus) should be excluded from notional income as they are not for the family's benefit, reducing monthly income from Rs. 23,463 to Rs. 20,512.

Supporting the 50% future prospects, the Court noted the testimony of PW2 (Manager) and service records proving the deceased was on a permanent career path with regular increments.

Finally, the Court aligned the non-pecuniary heads with Pranay Sethi, increasing consortium while removing "love and affection" and adjusting funeral expenses.

The Court partly allowed the appeal, reducing the total compensation by Rs. 6,03,048/- to a revised sum of Rs. 45,80,592/- and directed the release of the revised amount to the claimants and the refund of the excess deposit to the Insurance Company.