Madras HC Raises Compensation for Parents of 20-Year-Old Killed in 2021 Crash to Rs 26,80,400

The appellants, parents of the deceased Sathish, sought compensation under Section 166 of the Motor Vehicles Act, 1988, after he died in a road accident on 21 November 2021.

The Tribunal found the lorry driver negligent and awarded Rs.11,45,000, including Rs.10,80,000 for loss of income, using a notional monthly income of Rs.10,000.

The parents appealed under Section 173 of the Act, contending that the deceased, aged about 20, earned more as a building-tiles worker and that the award was inadequate.

Section 166 of the Motor Vehicles Act, 1988 provides for claims arising from motor-vehicle accidents, while Section 173 provides for an appeal against the Tribunal’s award.

For calculating dependency, the Court applied National Insurance Co. v. Pranay Sethi, 2017 (2) TNMAC 601, adding 40% towards future prospects, and Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, applying a multiplier of 18. As the deceased was a bachelor, the Court deducted 50% of his income towards personal and living expenses.

Although the claimants asserted monthly earnings of Rs.25,000, the Court found no satisfactory proof of income. Considering the deceased’s age and the year of the accident, it fixed notional monthly income at Rs.17,000, added 40% for future prospects, deducted 50% for personal expenses, and applied multiplier 18, yielding Rs.25,70,400 for loss of dependency.

It enhanced loss of love and affection to Rs.80,000, reduced funeral expenses from Rs.25,000 to Rs.15,000, and awarded Rs.15,000 for loss of estate.

The insurer was directed to deposit the enhanced amount, less any amount already deposited, within six weeks; the Tribunal’s apportionment was to remain unchanged, and the claimants could withdraw the amount in accordance with the Tribunal’s directions.