Karnataka HC Adds ₹12.85 Lakh To Compensation For Family Of 21-Year-Old BTech Graduate, Assessing His Monthly Income At ₹25,000

The appellants, the deceased’s parents and sister, sought enhancement of compensation awarded for his death in a road traffic accident on 15 July 2024 involving an Ashoka Leyland goods carriage.

The Motor Accident Claims Tribunal assessed compensation at ₹26,27,900, including ₹24,94,800 for loss of dependency, and directed the insurer to pay the award with interest at 6% per annum.

The claimants appealed under Section 173(1) of the Motor Vehicles Act, contending that the compensation should be enhanced.

The deceased was 21 years old and had completed a B.Tech in Computer Science and Engineering; the evidence indicated that he was seeking employment when the accident occurred.

Section 173(1) of the Motor Vehicles Act provides for an appeal against an award of the Claims Tribunal.

In assessing loss of dependency, the Court applied the principles reflected in the Tribunal’s use of the deceased’s age-based multiplier, a 50% deduction for personal expenses because he was a bachelor, and a 40% addition for future prospects.

The Court relied on Shri Mallikarjun S/o Yallappa Jogannavar and others v. Shri Umesh M., S/o of Murthy K. and others, 2020 0 Supreme (Kar) 104, in which the Division Bench had assessed the income of an engineering student at ₹25,000 per month.

The Court accepted the documentary evidence that the deceased had completed his B.Tech in Computer Science and Engineering and considered the complaint evidence that he was looking for work at the time of the accident.

Applying the income assessment in Mallikarjun, it fixed his monthly income at ₹25,000.

It then added 40% for future prospects, deducted 50% for personal expenses, and applied the multiplier of 18, producing a loss-of-dependency figure of ₹37,80,000 (₹25,000 + 40%, less 50%, multiplied by 12 and 18).

As the claimants did not seek enhancement under the other heads, the Court left those amounts unchanged.

The Court enhanced compensation by ₹12,85,200, representing the difference between the recalculated loss of dependency of ₹37,80,000 and the Tribunal’s award of ₹24,94,800 under that head.

The enhanced sum carries interest at 6% per annum from the date of the petition until realization, and the insurer was directed to deposit it with the Tribunal within six weeks.

The enhanced compensation is to be apportioned among the claimants in the ratio 45:45:10; 50% of each claimant’s share is to be released and the remaining 50% placed in fixed deposit for three years.