Gujarat HC Raises Family’s Accident Compensation To ₹12.51 Lakh, Counting Deceased 45-Year-Old’s Farm Work In Income Assessment

The claimants appealed against the Motor Accident Claims Tribunal, Tapi at Vyara’s award of Rs. 5,42,500, with 9% annual interest, for the death of the 45-year-old deceased in a road accident on 2 April 2013.

The Tribunal had assessed his monthly income at Rs. 3,000. The claimants sought enhancement, contending that he drove a tempo and undertook animal husbandry and agricultural work; they claimed monthly and annual income beyond the amount assessed by the Tribunal.

The High Court considered the income assessment and the compensation payable under dependency and conventional heads.

Whether the deceased’s monthly income should be reassessed for calculating loss of dependency, given the evidence of agricultural activity and the absence of documentary proof of income

Whether the claimants were entitled to enhanced compensation under loss of dependency and conventional heads, and, if so, in what amount

The Court relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for the standardized amounts under loss of estate, consortium and funeral expenses, including a 10% increase every three years.

It also relied on United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur, (2021) 11 SCC 780, for awarding consortium separately to eligible family members, including spousal, parental and filial consortium.

In calculating dependency, the Court applied a 25% addition for future prospects, a one-fourth deduction for the deceased’s personal expenses, and a multiplier of 14.

The Court considered the Tribunal’s assessment of Rs. 3,000 per month too low, noting that it was below the stated minimum wage of Rs. 5,470 and that village records supported the deceased’s involvement in agricultural work.

It therefore assessed monthly income at Rs. 6,000, added 25% for future prospects, deducted one-fourth for personal expenses, and applied a multiplier of 14, producing a dependency award of Rs. 9,45,000.

Applying the cited authorities, it awarded Rs. 19,965 each for loss of estate and funeral expenses and Rs. 53,240 to each of the five claimants for consortium. The resulting total compensation was Rs. 12,51,130.

The Court awarded an additional Rs. 7,08,630 over the Tribunal’s award, with interest at 9% per annum from the date of the claim petition until realization.

The insurer was directed to deposit the enhanced amount with interest within nine weeks of receiving the order; the Tribunal was directed to disburse the amount in accordance with the order, subject to any court fees payable.