Karnataka HC Raises Compensation For 22-Year-Old’s Death By Rs 1.13 Lakh, Directs Entire Increase To His Mother

The claimants, the deceased Abhishek’s father, mother and brothers, sought compensation for his death in a road accident on 5 July 2024.

The Motor Accident Claims Tribunal assessed compensation at Rs.27,03,510, including loss of dependency calculated using a notional income of Rs.16,500 per month, and awarded interest at 6% per annum.

The claimants appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement

Under Section 173(1) of the Motor Vehicles Act, 1988, an aggrieved claimant may appeal an award of the Claims Tribunal

In assessing fatal-accident compensation, the Court applied the multiplier method, adding 40% to income for future prospects and deducting 50% for the deceased’s personal expenses; it used multiplier 18 for the deceased, aged 22

Relying on *National Insurance Company v. Pranay Sethi*, AIR 2017 SC 5157, the Court applied 20% escalation to conventional heads because the accident occurred more than six years after that decision

The Court upheld the Tribunal’s use of multiplier 18, the 40% addition for future prospects and the 50% deduction for personal expenses.

It found the Tribunal’s notional monthly income of Rs.16,500 too low and substituted Rs.17,000, the notional income fixed for 2024, producing a dependency award of Rs.25,70,400.

Applying 20% escalation to conventional heads, it assessed consortium for four claimants at Rs.1,92,000, loss of estate at Rs.18,000, and funeral expenses and transportation of the body at Rs.18,000.

The judgment states medical expenses as Rs.18,170 in its revised calculation, although the Tribunal’s award is recorded as Rs.18,710.

The Court fixed total compensation at Rs.28,16,570, enhancing the Tribunal’s award by Rs.1,13,060, with interest at 6% per annum from the date of the petition until realization.

The insurer was directed to deposit the enhanced amount with interest within six weeks, and the entire enhancement was ordered released to the deceased’s mother, claimant No. 2.