Karnataka HC Raises Compensation To ₹51.72 Lakh For Mother And Sisters Of 21-Year-Old Who Worked Two Jobs

The claimants—the deceased’s mother and two sisters—appealed against the MACT award of ₹14,10,800 with 6% annual interest for the death of the deceased, aged 21, in a road accident on 20 September 2015.

The Tribunal assessed his monthly income at ₹9,000, applied 40% future prospects and deducted 50% for personal expenses.

In the appeal, the claimants relied on salary certificates and employer testimony showing that the deceased earned ₹20,000 per month as an electrician and ₹5,000 per month in part-time catering work.

They also challenged the deduction for personal expenses, the consortium award and the interest rate.

Under the Motor Vehicles Act, 1988, compensation must be just and fair, and motor-accident claims are decided on a preponderance of probabilities rather than the criminal standard of proof.

Relying on Rajwati v. United India Insurance Co. Ltd., the Court noted that income evidence should not be rejected merely for want of proof to a criminal-trial standard.

It also referred to Sarla Verma v. Delhi Transport Corporation on personal-expense deductions and National Insurance Co. Ltd. v. Pranay Sethi on conventional heads, including consortium and its escalation.

The Court further relied on United India Insurance Co. Ltd. v. Sri Malyadri M. and Smt. Divya V.M. v. Veerabhadrashetti K.C. concerning the appropriateness of 9% interest in relevant cases, while recognising that the rate depends on the circumstances.

The salary certificates were supported by testimony from both employers, who confirmed the deceased’s separate daytime and evening jobs.

Applying the relaxed evidentiary standard for motor-accident claims, the Court accepted their combined monthly income of ₹25,000.

It recalculated dependency using 40% future prospects and a one-third deduction for personal expenses, resulting in ₹50,40,000; it also revised consortium to ₹96,000 for two dependants, with funeral expenses and loss of estate assessed at ₹18,000 each.

Although the Court discussed authority supporting 9% interest, it considered 8% appropriate on these facts and excluded interest for the 1,300-day delay.

Total compensation was enhanced to ₹51,72,000, with interest at 8% per annum from the date of the claim petition to realisation, excluding interest for the 1,300-day delayed period.

The insurer was directed to deposit the enhanced compensation within eight weeks; the remaining award was left undisturbed.