One-fourth deduction for personal expenses is mandatory where the deceased is survived by four dependents.

The appellants, being the widow and minor son of the deceased, filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal (Auxi.), Rajkot, in M.A.C.P. No. 489 of 2008.

The deceased succumbed to injuries sustained in a motor vehicle accident on December 1, 2007.

At the time of the accident, the deceased was 35 years old and survived by four dependents (widow, son, and parents).

The Tribunal had assessed the deceased's monthly income at ₹2,700, applied a multiplier of 15, and deducted 1/3rd for personal expenses, resulting in a total award of ₹5,11,000.

The appellants contended that the income, multiplier, and conventional heads were incorrectly calculated.

Whether the Tribunal erred in determining the monthly income of the deceased and failing to account for future prospects?

Whether the appropriate multiplier and deduction for personal expenses were applied in accordance with established precedents?

Whether the claimants and the aged parents are entitled to enhanced compensation under conventional heads, including consortium?

The Court primarily applied Section 166 and 173 of the Motor Vehicles Act, 1988 regarding claim petitions and appeals.

It relied on Govind Yadav v. New India Insurance Co. Ltd. (2011) to determine income based on minimum wages in the absence of documentary proof.

Following National Insurance Company Ltd. v. Pranay Sethi (2017), the Court applied a 40% addition for future prospects and revised conventional heads.

Per Sarla Verma v. Delhi Transport Corp. (2009), it determined the correct multiplier (16 for age 35) and personal expense deduction (1/4th for four dependents).

Finally, it applied Magma General Insurance Co. Ltd. v. Nanu Ram (2018) to award spousal, parental, and filial consortium.

The Court found the Tribunal’s income assessment of ₹2,700 per month to be on the lower side and, referencing the minimum wage prevailing in 2007, re-determined it at ₹2,800.

It held that the Tribunal erred by not adding 40% for future prospects, which is mandatory for a 35-year-old self-employed deceased.

Regarding deductions, the Court corrected the Tribunal’s 1/3rd deduction to 1/4th, noting the deceased had four dependents.

The multiplier was increased from 15 to 16 as per the age-bracket guidelines in Sarla Verma.

Furthermore, the Court exercised its discretion to award filial consortium to the aged parents despite their lack of an independent appeal, emphasizing the objective of "just and fair compensation" under beneficial legislation.

It enhanced the total compensation from ₹5,11,000 to ₹7,94,380, resulting in an additional amount of ₹2,83,380.

The Court directed the Insurance Company to deposit the enhanced amount with 8% interest per annum from the date of the claim petition within six weeks.

The enhanced amount includes ₹5,64,480 for loss of dependency, ₹1,93,600 for consortium (spousal, parental, and filial), ₹18,150 for loss of estate, and ₹18,150 for funeral expenses.