Karnataka HC Raises Crash-Death Compensation For Widow And Two Adult Sons From ₹9.9 Lakh To ₹22.65 Lakh, Applying 25% For Future Prospects

The appellants, the deceased Puttalingaiah’s wife and two sons, sought compensation for his death in a road accident involving an Eicher Canter on 24 February 2021.

The Motor Accident Claims Tribunal awarded ₹9,90,000, including ₹8,40,000 for loss of dependency.

Dissatisfied with the award, the claimants appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

Section 173(1) of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Claims Tribunal.

Under Sarla Verma v. Delhi Transport Corporation, the deceased’s personal and living expenses are deducted when calculating loss of dependency, and the applicable multiplier is determined by age.

Under National Insurance Co. Ltd. v. Pranay Sethi, future prospects are added to income, and the conventional heads of funeral expenses, loss of estate, and consortium are subject to escalation.

The Court accepted the Tribunal’s use of ₹15,000 as monthly income, the multiplier of 14 for the deceased’s age of 45, and a one-third deduction for personal expenses.

It held that 25% should be added for future prospects and calculated loss of dependency at ₹21,00,000, replacing the Tribunal’s award of ₹8,40,000 under that head.

It further added 10% to the Tribunal’s awards for funeral expenses, loss of estate, and consortium.

It modified the award to a total compensation of ₹22,65,000, with the enhanced amount carrying interest at 6% per annum from the date of the petition until realization.

The insurer was directed to deposit the compensation with accrued interest within eight weeks of receiving the certified judgment; apportionment, disbursement, and deposit were to follow the Tribunal’s order.