Where a deceased leaves five dependants, one-fourth of income is deducted for personal expenses.

On 28 December 2019, the deceased was struck by a Mahindra Bolero Pick-up while standing by the roadside and died after being taken to hospital

His dependants sought compensation, and the Tribunal awarded ₹32,44,000 with interest at 8% per annum

The insurer appealed, challenging the compensation—including the deduction for the deceased’s personal expenses and amounts awarded under conventional heads—and the interest rate

Whether the compensation awarded by the Tribunal was excessive and required reduction

Whether the Tribunal’s award of interest at 8% per annum required modification

Under National Insurance Co. Ltd. v. Pranay Sethi, conventional amounts for loss of consortium, loss of estate, and funeral expenses are subject to 10% escalation as applied by the Court

In calculating loss of dependency, the Court applied a 40% addition for future prospects, a one-fourth deduction for personal and living expenses where the deceased left five dependants, and a multiplier of 16 in this case

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988

The Court reassessed the dependency award using a monthly notional income of ₹13,250, adding 40% for future prospects, deducting one-fourth for personal expenses, and applying multiplier 16, which yielded ₹26,71,200

It fixed consortium at ₹2,20,000 for the widow, three children, and the deceased’s mother, and allowed ₹16,500 each for loss of estate and funeral expenses

These calculations reduced the Tribunal’s award to ₹29,24,200.

The Court found no basis to alter the 8% interest rate

The award was modified to ₹29,24,200, payable by the insurer with interest at 8% per annum from the date of the petition until deposit; apportionment, disbursement, and deposit were left to the Tribunal’s order

Any excess deposited by the insurer was to be refunded, and the Tribunal was directed to draw a modified award