Proved salaried income, less professional tax, warrants 40% future-prospects enhancement in dependency compensation.

On 30 December 2020, Bharatbhai Punjabhai Thakor, aged approximately 25 years, was travelling as a pillion rider on a motorcycle when an Eicher truck allegedly driven rashly and negligently by Respondent No. 1 collided with the motorcycle. The deceased sustained serious injuries and died as a result of the accident.

His claimants alleged that he was employed as a labourer with Ashish Labour Organisation and earned approximately Rs.20,000 per month.

The Motor Accident Claims Tribunal, Kheda at Nadiad, partly allowed M.A.C.P. No. 568 of 2021 and awarded Rs.15,96,000 with interest at 7.5% per annum from the date of filing until realization.

The claimants filed the present appeal challenging the award exclusively on the ground of inadequacy of compensation, particularly the assessment of the deceased’s income.

Whether the Tribunal erred in assessing the deceased’s monthly income at Rs.10,000 instead of determining it from the salary records produced by the claimants?

Whether the claimants were entitled to enhancement of compensation by applying future prospects, the appropriate deduction for personal expenses, and the applicable multiplier?

What additional compensation and interest, if any, were payable to the claimants?

The Court applied the principles governing computation of compensation in fatal motor-accident claims under the Motor Vehicles Act, including assessment of proven income, addition for future prospects, deduction towards the personal expenses of a bachelor deceased, and application of the age-based multiplier.

Relying on National Insurance Co. Ltd. v. Pranay Sethi, 2017 (16) SCC 680, the Court held that a deceased aged 25 years was entitled to a 40% addition towards future prospects and that, being a bachelor, 50% of the income was required to be deducted towards personal expenses.

The multiplier of 18 was applied having regard to the deceased’s age.

The amounts awarded under loss of consortium, loss of estate and funeral expenses were maintained.

The Court found that the claimants had examined Sushilkumar Manikchandra Tiwari, who established the deceased’s employment with Ashish Labour Organisation, and had produced salary slips at Exhibits 48 to 51.

Although the insurer disputed the absence of salary slips for November and December 2020, the Court accepted the August 2020 salary slip as the evidentiary basis for determining income.

The gross salary of Rs.14,716 was reduced by Rs.200 towards professional tax, resulting in a monthly income of Rs.14,516.

Applying 40% future prospects increased the income to Rs.20,322 per month; deducting 50% for personal expenses resulted in a monthly dependency figure of Rs.10,161.

Applying the multiplier of 18 produced a future loss of dependency of Rs.21,94,776.

Adding the amounts under the other heads, the total compensation was recalculated at Rs.22,78,776, against the Tribunal’s award of Rs.15,96,000.

The High Court enhanced the total compensation to Rs.22,78,776, granting an additional amount of Rs.6,82,776 to the claimants.

The rate of interest of 7.5% per annum from the date of filing of the claim petition until realization was maintained and applied to the enhanced amount.

Respondent No. 3–Insurance Company was directed to deposit and satisfy the awarded amount, including the enhancement, within six weeks of receiving the order.

The Tribunal was directed to disburse the amount to the claimants after verification and deduction of any deficit court fee.

No order as to costs was made.