Fatal accident compensation for a 30-year-old must include 40% future prospects.

Thippeswamy died on 30 March 2018 from injuries sustained when the TATA Magic auto in which he was travelling was hit by a Canter lorry on 18 March 2018.

His wife, three minor children and parents filed a compensation claim.

The Tribunal awarded compensation of Rs.18,35,359 with interest at 9% per annum.

The claimants appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement, contending that the Tribunal had not adequately considered the deceased’s income, family circumstances and dependants

1. Whether the Tribunal’s award of compensation for the deceased’s death required enhancement, including on account of future prospects and the claimants’ dependency.

2. Whether the compensation awarded under the conventional heads and the interest on the enhanced amount required modification.

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988.

In assessing compensation, the Court applied a 40% addition for future prospects, a multiplier of 17 and a ¼ deduction for the deceased’s personal expenses; it also assessed consortium and other conventional heads.

The Court attributed the future-prospects rule to a Supreme Court judgment but did not identify that judgment by name.

The judgment does not specify the authority for the multiplier, deduction or amounts awarded under the conventional heads.

The Court found that the deceased was about 30 years old and that the Tribunal had not included future prospects in its assessment.

It recalculated loss of dependency using income of Rs.12,500 per month, a 40% addition for future prospects, a ¼ deduction for personal expenses and a multiplier of 17, producing Rs.26,77,500.

It also revised the amounts for spousal, parental and filial consortium and loss of love and affection, while retaining the amounts awarded for loss of estate, funeral expenses, and medical and travelling expenses.

The Court modified the Tribunal’s award and fixed total compensation at Rs.31,69,859, an enhancement of Rs.13,34,500 over the Tribunal’s award of Rs.18,35,359.

The enhanced amount carries interest at 6% per annum from the date of the appeal until realization, and the Insurance Company was directed to deposit it within six weeks of receiving the certified copy of the judgment.