Unmarried deceased’s income requires 50% deduction for personal expenses where claimants are not dependants.

Pokhanlal Sahu, aged 21 years, died in a motor-vehicle accident on 11 February 2022 allegedly caused by the rash and negligent driving of vehicle No. CG-07/CA-3366.

His mother and three sisters filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of ₹51,00,000.

The Motor Accident Claims Tribunal awarded ₹28,85,192, treating the deceased’s monthly income as ₹12,987, adding 50% towards future prospects, applying a multiplier of 18, and deducting one-third towards personal expenses.

The insurer challenged the award under Section 173 of the Motor Vehicles Act, principally contending that the deceased was an unmarried bachelor and that one-half, rather than one-third, ought to have been deducted towards his personal expenses.

The deceased’s mother admitted that one sister had obtained compassionate employment after his death and that another married sister was residing with her husband.

Whether the Tribunal was justified in assessing the deceased’s monthly income at ₹12,987 and adding 50% towards future prospects while applying a multiplier of 18?

Whether, since the deceased was an unmarried bachelor, one-half or one-third of his income ought to be deducted towards personal expenses?

Whether the mother and each of the deceased’s three sisters were entitled to separate compensation for loss of consortium, and whether the amounts under the conventional heads required enhancement?

The Court applied Section 173 of the Motor Vehicles Act, 1988 governing appeals against awards of the Motor Accident Claims Tribunal, and the compensation principles under Section 166 of the Act.

Relying on Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, it applied the appropriate multiplier and the rule that, in the case of an unmarried deceased, deduction towards personal expenses ordinarily depends upon the number and status of dependants.

Under National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, 50% future prospects were applicable to a deceased aged 21 years with stable income, and the conventional heads were subject to standardised amounts.

Under Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, each eligible claimant could receive separate compensation for loss of consortium, including filial consortium for parents and siblings.

The Court upheld the income assessment because Exhibit P-24, issued by the District Fire Officer, showed the deceased’s last monthly wages as ₹12,987 for January 2022; the amount was therefore not excessive.

Given his age of 21 years, the addition of 50% towards future prospects and application of multiplier 18 were also sustained.

However, the Court modified the deduction for personal expenses from one-third to one-half.

It relied on the mother’s admissions that one sister had secured compassionate employment and that the elder sister was married and living in her matrimonial home, thereby reducing the number of actual dependants.

The Court further held that the mother and all three sisters were entitled to separate consortium compensation.

It awarded ₹44,000 to each of the four claimants, totalling ₹1,76,000, and enhanced loss of estate and funeral expenses from ₹15,000 each to ₹16,500 each.

On recalculation, loss of dependency was reduced to ₹21,03,894, resulting in total compensation of ₹23,12,894.

The Court reduced the compensation from ₹28,85,192 to ₹23,12,894, primarily by applying a one-half deduction towards the deceased’s personal expenses.

It upheld the income of ₹12,987 per month, 50% future prospects, and multiplier 18; awarded separate consortium compensation of ₹44,000 to each of the mother and three sisters; and enhanced the amounts for loss of estate and funeral expenses to ₹16,500 each.

All other terms of the Tribunal’s award remained undisturbed.