Milk-Supply Receipts Help Gujarat HC Raise Deceased Motorcyclist’s Family Compensation To Rs 34.6 Lakh, Assessing His Income At Rs 15,000 A Month

A 27-year-old motorcyclist died from injuries sustained in a collision with a tanker on 17 September 2011. His legal heirs brought a claim petition, and the Tribunal awarded ₹21,33,500, assessing his monthly income at ₹8,000. The insurer appealed, contending that the award was excessive; the claimants filed cross-objections, contending that it was inadequate.

To establish income, the claimants produced receipts showing payments for milk supplied to a society: ₹8,45,000 in 2009–10, ₹6,50,000 in 2010–11, and ₹3,68,000 during the six months before the deceased’s death.

The Court applied the compensation principles set out in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, including the addition of future prospects and awards under conventional heads.

In its calculation, the Court added 40% to the deceased’s income for future prospects, deducted one-fourth for personal expenses, applied a multiplier of 17, and assessed loss of consortium, loss of estate, and funeral expenses.

The receipts showed substantial milk-business turnover over the years preceding the deceased’s death. Recognising that the business also involved expenses, the Court treated ₹1,80,000 as a reasonable annual profit and assessed monthly income at ₹15,000, rather than the Tribunal’s ₹8,000.

Applying the stated future-prospects, deduction, multiplier, and conventional-head calculations, it assessed total compensation at ₹34,60,000. The difference from the Tribunal’s award was ₹13,26,500.

The insurer was directed to deposit the enhanced amount within ten weeks of receiving a copy of the order, for disbursement to the claimants by NEFT/RTGS after verification. The First Appeal and Cross-Objection were disposed of accordingly.