Documentary evidence of dairy and ancillary income justified fixing the deceased’s monthly income at ₹20,000.

On 23 October 2012, an accident occurred involving an Eicher vehicle and the deceased, who died at the spot.

The vehicle was insured with IFFCO Tokio General Insurance Company, and the insurer’s liability to pay compensation was not disputed.

The Motor Accident Claims Tribunal assessed the deceased’s monthly income at approximately ₹12,000 and awarded total compensation of ₹23,26,400.

The deceased’s legal heirs filed an appeal seeking enhancement, while the insurer filed an appeal challenging the excessiveness of the award.

Evidence showed that the deceased owned cattle, supplied milk, undertook animal husbandry and cattle-grazing activities, and conducted business in food grains and other commodities.

Records from the milk cooperative society indicated earnings of approximately ₹2.5 lakh over six months.

The deceased was approximately 40 years old and left behind six dependants: his widow, three minor children, and both parents.

Whether the deceased’s monthly income should be reassessed at ₹20,000 instead of ₹12,000 for determining loss of dependency?

Whether future prospects, the appropriate multiplier, and the deduction for personal expenses were correctly required to be applied in computing compensation?

Whether the claimants were entitled to enhanced compensation under loss of dependency, consortium, loss of estate, funeral expenses, and loss of cattle?

Whether the insurer’s appeal challenging the quantum of compensation should be allowed?

The Court applied the principles governing computation of compensation under the Motor Vehicles Act, 1988, including assessment of the deceased’s actual or reasonably established income, addition of future prospects, application of the age-based multiplier, and deduction towards personal expenses.

For a deceased aged approximately 40 years, a multiplier of 15 was applied, and future prospects were added at 25%.

Since the deceased had six dependants, only one-fifth of the income was deducted towards personal expenses.

The Court relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for compensation under loss of consortium and conventional heads, awarding ₹48,400 to each dependant towards consortium and ₹36,300 under the conventional heads.

The Court found that the Tribunal had undervalued the deceased’s income.

The cooperative society’s records established milk-related earnings of approximately ₹2.5 lakh for six months, equivalent to about ₹5 lakh annually, while additional evidence supported earnings from animal husbandry and commodity trading.

On an overall assessment of the documentary and oral evidence, the Court fixed the monthly income at ₹20,000.

Applying 25% future prospects, the multiplier of 15, and a one-fifth deduction for personal expenses because there were six dependants, the Court calculated the loss of dependency at ₹36,00,000.

It further reassessed consortium at ₹2,90,400 for six dependants, loss of estate at ₹18,150, and funeral expenses at ₹18,150.

The existing award of ₹40,000 for the cattle killed in the accident was maintained.

The total compensation was enhanced from ₹23,26,400 to ₹39,66,700, resulting in an enhanced amount of ₹16,40,300.

The Insurance Company was directed to deposit the enhanced compensation within ten weeks, together with interest at 9% per annum from the date of filing of the claim petition until payment.