Farmer’s Widow And Two Children Get ₹4.27 Lakh More As Karnataka HC Raises Accident Compensation To ₹23.9 Lakh

The claimants—the deceased Paramesh Gowda’s wife and two children—appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement of compensation for his death in a road accident on 29 April 2023 involving a bus bearing registration No. KA-15-A-1988.

The Motor Accident Claims Tribunal awarded Rs. 19,62,952, including Rs. 19,19,952 for loss of dependency, and directed the insurer to pay.

The claimants challenged the award as inadequate.

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

In assessing compensation, the Court applied the multiplier and future-prospects approach, accepted multiplier 13 for the deceased aged 48 and a 25% addition for future prospects.

It relied on National Insurance Company v. Pranay Sethi, AIR 2017 SC 5157, to apply a 20% escalation to conventional heads, noting that the accident occurred more than six years after that decision.

The Court also treated the 2023 notional income figure for an unskilled worker, Rs. 16,250 per month, as a reference point and considered the deceased’s agricultural occupation in fixing income.

The Tribunal had used a monthly income of Rs. 16,000 because no income proof was produced.

The High Court considered RTC records showing six acres of land jointly held by the deceased, his brothers, and mother, which supported the conclusion that he was an agriculturist; it therefore fixed his monthly income at Rs. 17,000.

Applying a one-third deduction for personal expenses, multiplier 13, and 25% future prospects, the Court calculated loss of dependency at Rs. 22,10,000.

It awarded consortium of Rs. 48,000 to each of the three claimants and revised loss of estate and funeral expenses to Rs. 18,000 each, applying the 20% escalation.

It disallowed the separate Rs. 10,000 transportation award.

The claimants were awarded an additional Rs. 4,27,048, with interest at 6% per annum from the date of the petition until realisation.

Respondent No. 2 was directed to deposit the enhanced amount with interest before the Tribunal within six weeks; the enhanced compensation was to be released to the claimants in the ratio 70:15:15.