Motor accident compensation must reflect revised notional income, future prospects, and consortium for eligible dependants.

The appellants, minor children of the deceased Smt. Jayalakshmi, appealed the Motor Accident Claims Tribunal’s award of Rs.12,34,864 for her death in a motor accident.

The accident and the insurer’s liability were undisputed.

The Tribunal had assessed the deceased’s notional income at Rs.6,500 per month and added 40% for future prospects.

The appellants sought enhancement, contending that the notional income should have been assessed at Rs.8,000 per month

1. Whether the Tribunal’s assessment of the deceased’s notional income and the resulting award for loss of dependency required enhancement

2. Whether the appellants and the deceased’s husband were entitled to reassessed compensation under the heads of consortium, loss of estate, and funeral expenses

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988

The Court applied the compensation principles reflected in the award: assessment of loss of dependency by reference to the deceased’s income, future prospects, deduction for personal expenses, and the applicable multiplier; and award of compensation under the heads of consortium, loss of estate, and funeral expenses

The judgment cites no specific precedent or further statutory provision for these principles

The Court accepted that, for an accident in 2013, the appellants’ proposed notional income of Rs.8,000 per month was appropriate, with 40% added for future prospects.

It accordingly reassessed loss of dependency at Rs.14,33,664, replacing the Tribunal’s Rs.11,64,864 award under that head

As the appellants were minors when their mother died, each was awarded Rs.44,000 for filial consortium; their father, the deceased’s husband, was also awarded Rs.44,000 for consortium.

The Court further reassessed loss of estate and funeral expenses at Rs.16,500 each

The Court enhanced the total compensation payable to the appellants and respondent No.3 from Rs.12,34,864 to Rs.15,98,664.

The enhanced amount carries interest at 6% per annum from the date of the petition until realization; apportionment remains as directed by the Tribunal.

For each appellant, 50% of their entitlement is to be released with accrued interest, and the remaining 50% is to be kept in fixed deposit for three years