Non-dependent adult children’s claims require a 50% deduction for the deceased’s personal expenses.

Bhaskar and Shanthla claimed compensation for the death of their father, Thimmachar, in a motorcycle accident on 1 December 2023.

The MACT awarded ₹10,76,000, including ₹9,60,000 for loss of dependency, with interest at 6% per annum.

The insurer appealed under Section 173(1) of the Motor Vehicles Act, challenging the quantum, principally on the ground that the Tribunal had made no deduction for the deceased’s personal expenses although the claimants were his major son and married daughter.

The High Court considered the deceased’s age, the appropriate notional income, the personal-expense deduction, and consortium.

1. Whether the Tribunal erred in calculating loss of dependency by making no deduction for the deceased’s personal expenses, given that the claimants were his major son and married daughter.

2. Whether the compensation awarded under the relevant heads, including consortium, required adjustment.

Under Section 173(1) of the Motor Vehicles Act, the insurer may appeal against an award of the MACT.

In calculating loss of dependency, the Court applied a 50% deduction for the deceased’s personal expenses, used the multiplier of 5 having regard to the deceased’s age of 80, and adopted a notional monthly income of ₹16,250 for 2023.

For consortium, it applied the principle in National Insurance Co. Ltd. v. Pranay Sethi, awarding ₹40,000 per claimant with a 20% escalation.

The Court held that the deceased was 80 at the time of the accident and affirmed the Tribunal’s use of multiplier 5.

It substituted the 2023 notional income of ₹16,250 for the ₹16,000 used by the Tribunal, but deducted 50% for personal expenses because the Tribunal had made no deduction and the claimants were the deceased’s major son and married daughter.

This resulted in loss of dependency of ₹4,87,500 (₹16,250 less 50%, multiplied by 12 and by 5).

Applying Pranay Sethi, the Court increased consortium to ₹48,000 for each claimant, or ₹96,000 in total, and left the awards for loss of estate and funeral expenses unchanged.

The total compensation was reduced from ₹10,76,000 to ₹6,19,500, with interest at 6% per annum from the date of the petition until realization.

The claimants were allotted equal shares; the Tribunal’s deposit and release order was otherwise left unaltered, and the deposited amount was directed to be transmitted to the Tribunal.