Personal-expense deductions turn on actual financial dependency, not merely the number of surviving family members.

The appellant, widow of Sidramappa, sought compensation for his death after a motorcycle struck him on 4 February 2023.

The Motor Accident Claims Tribunal awarded ₹4,15,000, including ₹3,60,000 for loss of dependency, and directed the insurer to pay.

In the appeal, the widow challenged the adequacy of compensation, arguing that the Tribunal wrongly treated her as the deceased’s sole dependent and that the amounts under conventional heads were insufficient.

1. Whether the Tribunal was justified in treating the appellant as the deceased’s sole dependent and deducting 50% of his income for personal and living expenses.

2. Whether the compensation awarded for loss of dependency and conventional heads required enhancement.

Under Section 173(1) of the Motor Vehicles Act, an aggrieved party may appeal an award of the Claims Tribunal.

Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, requires the deduction for personal and living expenses to be assessed by reference to the number of persons actually dependent on the deceased; ordinarily, a 50% deduction applies where there is one dependent.

The Karnataka State Legal Services Authority’s notional income chart prescribed monthly income of ₹15,500 for accidents in 2023.

National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, and Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, informed the Court’s assessment of conventional heads and the 10% enhancement applied at three-year intervals.

The appellant had pleaded before the Tribunal that the deceased’s children were married and living separately, and the record did not establish that they remained financially dependent on him.

The Court therefore treated the appellant as the sole dependent and upheld the 50% deduction.

However, the Tribunal had assessed monthly income at ₹12,000; applying the 2023 notional income of ₹15,500, deducting 50%, and applying the multiplier of 5 produced loss of dependency of ₹4,65,000.

The Court also increased spousal consortium from ₹40,000 to ₹44,000 and funeral expenses from ₹15,000 to ₹16,500, and awarded ₹16,500 for loss of estate.

The total compensation was enhanced from ₹4,15,000 to ₹5,42,000, an increase of ₹1,27,000.

The enhanced amount carries interest at 6% per annum from the date of the claim petition until realization, and the insurer was directed to deposit it within six weeks of receiving the certified judgment.