Each claimant is entitled to consortium, with 10% enhancement of conventional compensation heads.

Shyam Sundar Barve, aged 45 years, died from injuries sustained in a motor vehicle accident on 19 April 2021 involving motorcycle bearing registration No. C.G. 28-K/7467, driven and owned by respondent No. 1 and insured by respondent No. 2.

His legal representatives instituted a claim before the Motor Accident Claims Tribunal, Bilaspur. By award dated 17 February 2023 in Claim Case No. 1349/2021, the Tribunal awarded total compensation of ₹16,79,000, including amounts under the conventional heads of loss of estate, funeral expenses, and loss of consortium.

The claimants challenged the award under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of the conventional amounts by 10% in accordance with applicable Supreme Court precedent.

The insurer opposed the appeal and contended that the award was just and reasonable.

Whether the claimants were entitled to a 10% enhancement in the amounts awarded under the conventional heads in view of the law laid down in National Insurance Co. Ltd. v. Pranay Sethi?

Whether each of the five claimants was entitled to compensation for loss of consortium, and, if so, what was the resulting enhanced compensation?

The Court applied Section 173 of the Motor Vehicles Act, 1988, which permits an aggrieved party to appeal against an award of the Motor Accident Claims Tribunal.

It relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, under which the amounts payable for conventional heads—loss of estate, funeral expenses, and consortium—are subject to periodic enhancement, including a 10% increase applicable to the present accident.

Applying this principle, loss of estate and funeral expenses were enhanced from ₹15,000 to ₹16,500 each, and consortium from ₹40,000 to ₹44,000 per eligible claimant.

The Court further recognised entitlement of all five claimants to consortium at ₹44,000 each.

The Tribunal had awarded amounts under the conventional heads, but had not applied the requisite 10% enhancement applicable to an accident occurring on 19 April 2021.

Applying Pranay Sethi, the Court fixed loss of estate and funeral expenses at ₹16,500 each.

Since there were five claimants, it awarded consortium at ₹44,000 to each, totalling ₹2,20,000.

The total compensation under the conventional heads was therefore recalculated at ₹2,53,000. As the Tribunal had already awarded ₹2,30,000 under those heads, the Court determined that the claimants were entitled to an additional ₹23,000.

The enhanced amount was directed to carry interest at 6% per annum from the date of filing of the claim petition until actual realisation.

The remaining terms and conditions of the Tribunal’s award were left undisturbed.

The Registry was directed to communicate the enhanced amount to the claimants in Hindi/Devanagari, with assistance from paralegal workers and coordination with the concerned Legal Aid Secretary.