Just compensation requires proper assessment of income, future prospects, and conventional damages in fatal accident claims.

On 19 September 2021, the deceased was riding a motorcycle when a car allegedly driven rashly and negligently collided with it; the deceased later died from his injuries.

His legal representatives claimed ₹30 lakh in compensation.

The Motor Accident Claims Tribunal, Anand, awarded ₹19,72,568 with interest at 9% per annum.

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988, contending that the compensation was inadequately assessed.

1. Whether the Tribunal had correctly assessed the deceased’s income and the claimants’ future dependency loss.

2. Whether the amounts awarded under the conventional heads, including loss of estate, funeral expenses and loss of consortium, required enhancement.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Claims Tribunal.

The Act’s beneficial purpose requires an award of just and fair compensation, assessed reasonably and on a holistic basis.

Applying National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, the Court allowed for future prospects and awarded ₹18,150 each for loss of estate and funeral expenses.

Applying United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur, (2021) 11 SCC 780, it assessed consortium at ₹48,400 for each of the four dependants.

The Court found that the Tribunal had not properly considered the deceased’s monthly income.

It calculated dependency using monthly income of ₹9,495, increased by 40% for future prospects, reduced by one-fourth for personal expenses, and multiplied by 17, producing ₹20,34,288 for future dependency loss.

It added ₹18,150 each for loss of estate and funeral expenses, and ₹1,93,600 for consortium, bringing total compensation to ₹22,64,188.

After deducting the Tribunal’s award of ₹19,72,568, the Court found an additional ₹2,91,620 payable.

The claimants were held entitled to enhanced compensation of ₹2,91,620, with interest at 9% per annum from the date of filing the claim petition until realisation.

The Insurance Company was directed to deposit the enhanced amount with interest within six weeks of receiving the order; the Tribunal’s remaining directions were left undisturbed.