Insurers must satisfy the award, with recovery rights against owners for unlicensed driving.

The appellants, the deceased’s parents, challenged the award in MVC No. 2099/2015, which granted ₹13,51,000 with 9% annual interest for the death of their 24-year-old son in a 2014 motor-vehicle accident.

They sought enhancement on the grounds that the Tribunal had used an incorrect notional income and had not correctly assessed conventional heads of compensation.

They also contested the decision to place liability on the vehicle owner because the driver lacked a valid licence.

The Tribunal had assessed monthly income at ₹8,000, added 50% for future prospects, deducted 50% for personal expenses, and applied a multiplier of 18.

Under Section 173(1) of the Motor Vehicles Act, the High Court may hear an appeal against a Tribunal’s award.

The Court applied National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, on future prospects and conventional heads of compensation.

On insurer liability, it relied on National Insurance Co. Ltd. v. Swaran Singh, (2004) 3 SCC 297, United India Insurance Co. Ltd. v. Lehru, (2003) 3 SCC 338, and Pappu v. Vinod Kumar Lamba, (2018) 3 SCC 208.

Under Section 149(2)(a)(ii), absence or invalidity of a driving licence does not, by itself, absolve the insurer; the insurer must establish a relevant breach by the insured.

In an appropriate case, the insurer may be directed to satisfy the award and recover the amount from the owner or driver under the same award, having regard to Sections 165 and 168.

The Court revised the monthly income from ₹8,000 to ₹8,500, added 40% for future prospects, deducted 50% for the deceased’s personal expenses, and applied the multiplier of 18, calculating loss of dependency at ₹12,85,200.

It awarded consortium to the two dependants and increased the conventional heads by 20%, resulting in total compensation of ₹14,17,200 and an enhancement of ₹66,200.

On liability, although the Tribunal found that the driver lacked a valid licence, the Court held that the insurer should satisfy the claimants’ award and recover the amount from the vehicle owner in accordance with law, applying the principles in Swaran Singh and Pappu.

The award was modified to grant total compensation of ₹14,17,200 with interest at 9% per annum, subject to exclusion of interest for the 788-day delay in filing the appeal.

The insurer was directed to deposit the enhanced compensation within eight weeks and was granted liberty to recover the amount from the insured owner in accordance with law.

The remaining parts of the Tribunal’s award were left undisturbed.