Motor accident compensation must include future prospects, the age-based multiplier, one-fourth deduction, and consortium for all eligible claimants.

On 24 June 1998, at approximately 12:15 a.m., the deceased was sleeping in a vada near Kodki Road when respondent No. 1 allegedly drove truck No. GTY-5531 rashly and negligently, causing it to overturn onto the deceased and his cattle. The deceased sustained fatal injuries and died as a result of the accident.

The claimants instituted M.A.C.P. No. 662 of 1998 before the Motor Accident Claims Tribunal, Bhuj-Kachchh. Respondent Nos. 1 and 2 remained absent, while the insurer, respondent No. 3, contested the claim.

The Tribunal awarded Rs.1,17,500 with interest at 7.5% per annum from the date of the claim petition.

The claimants filed the present appeal seeking enhancement of compensation on the grounds of future prospects, correct multiplier, deduction for personal expenses, and inadequate conventional damages.

Whether the claimants were entitled to enhancement of compensation by adding future prospects to the deceased’s established monthly income of Rs.1,700?

Whether the Tribunal applied the correct multiplier for the deceased, who was 52 years old at the time of the accident?

Whether the deduction towards the deceased’s personal expenses should have been one-fourth, considering four legal representatives?

Whether the amounts awarded under consortium, funeral expenses, loss of estate, and other conventional heads required enhancement?

The Court applied the principles governing assessment of compensation under the Motor Vehicles Act, 1988, particularly the computation of loss of dependency and conventional damages in fatal motor accident claims.

Relying on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, the Court held that 10% of the deceased’s income was to be added towards future prospects and that appropriate amounts were payable under conventional heads.

The Court also applied the multiplier applicable to a deceased aged 52 years, namely 11, and deducted one-fourth of the income towards personal expenses because the deceased left four legal representatives.

Relying on Magma General Insurance Co. Ltd. v. Nanu Ram, 2018 ACJ 2782, the Court recognised the entitlement of the widow and three children to compensation for consortium, awarding Rs.48,400 to each claimant.

The Court accepted the deceased’s age as 52 years on the basis of the passport produced in evidence, rather than the Tribunal’s broad age bracket of 50–65 years.

Since the monthly income of Rs.1,700 assessed by the Tribunal was not disputed, the Court added 10% towards future prospects under Pranay Sethi, arriving at Rs.1,870 per month.

As there were four legal representatives, it deducted one-fourth towards personal expenses and calculated the loss of dependency using a multiplier of 11, determining it as Rs.1,85,196.

The Court further enhanced funeral expenses to Rs.18,150, awarded Rs.18,150 for loss of estate, and awarded consortium of Rs.48,400 each to the widow and three children, totalling Rs.1,93,600.

The existing award of Rs.15,000 for pain, shock and suffering was maintained.

The total compensation was consequently recalculated at Rs.4,30,096, less the Tribunal’s award of Rs.1,17,500.

The High Court enhanced the total compensation from Rs.1,17,500 to Rs.4,30,096, resulting in an additional award of Rs.3,12,596.

The enhanced compensation was directed to carry interest at 7.5% per annum from the date of filing of the claim petition, consistent with the Tribunal’s award.

The impugned judgment and award were modified accordingly; any amount deposited before the High Court was directed to be transmitted to the Tribunal, with no order as to costs.