Madras HC Raises Compensation For Driver’s Widow To Rs 12.82 Lakh, Fixing His Notional Monthly Income At Rs 20,000

The appellant, the deceased Murali’s wife, sought compensation under Section 166 of the Motor Vehicles Act, 1988, following his death in a road accident on 27 October 2023.

The Tribunal attributed the accident to the two-wheeler rider’s rash and negligent driving and awarded Rs. 11,23,500, calculating dependency on a monthly notional income of Rs. 17,500, a 10% addition for future prospects, a 50% deduction for personal expenses, and a multiplier of nine.

The claimant appealed under Section 173, seeking enhancement.

She contended that the deceased was a driver earning Rs. 25,000 per month, was 55 rather than 58 years old, and that only one-third should be deducted for personal expenses.

Under Section 166 of the Motor Vehicles Act, a claimant may seek compensation for death caused by a motor accident; Section 173 provides for an appeal against the Tribunal’s award.

The Court applied the multiplier approach in Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, and the principle in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, that future prospects are to be added when calculating loss of dependency.

The Court assessed notional income in the absence of documentary proof and applied a 50% deduction for personal and living expenses, a 10% future-prospects addition, and a multiplier of nine.

The Court accepted the Tribunal’s finding that the deceased was 58 at the time of the accident, relying on his driving licence, which recorded his date of birth as 20 June 1965, notwithstanding other records showing him as 55.

As the asserted monthly income of Rs. 25,000 was unproved, the Court nevertheless considered the accident date, cost of living, and the deceased’s light-motor-vehicle licence and increased the notional income from Rs. 17,500 to Rs. 20,000.

It retained the 50% deduction and multiplier of nine, and calculated dependency at Rs. 11,88,000 after adding 10% future prospects.

It also awarded Rs. 10,000 for transportation, finding that the Tribunal had made no award under that head, while leaving the other conventional awards undisturbed.

The Court modified the award to Rs. 12,82,000, comprising Rs. 11,88,000 for loss of dependency, Rs. 48,000 for consortium, Rs. 18,000 each for loss of estate and funeral expenses, and Rs. 10,000 for transportation.

The insurer was directed to deposit the amount, less any sum already deposited, within six weeks, with interest at 7.5% per annum from the date of the claim petition until deposit; the claimant was permitted to withdraw it subject to the stated conditions.