Widow And Daughter’s Accident Award Cut By Rs 2.95 Lakh; P&H HC Allows Insurer To Recover Excess If Already Deposited

Anita, the deceased Ashok Mandal’s wife, and their minor daughter sought compensation under Section 166 of the Motor Vehicles Act, 1988, following his death in a truck accident on 12 April 2014.

The Motor Accident Claims Tribunal assessed his monthly income at ₹6,000, added 50% for future prospects, and awarded ₹13,05,000 in compensation.

The insurer appealed, challenging the future-prospects addition and the amounts awarded under conventional heads; the claimants had not appealed the quantum.

The claim arose under Section 166 of the Motor Vehicles Act, 1988.

In recalculating compensation, the Court relied on Sarla Verma v. Delhi Transport Corporation, Rajesh v. Rajbir Singh, and National Insurance Co. Ltd. v. Pranay Sethi.

Applying these authorities, the Court allowed a 25% addition for future prospects for a self-employed deceased aged 40, used a multiplier of 15, and assessed compensation for consortium, loss of estate, and funeral expenses.

The Court accepted the Tribunal’s assessment of monthly income at ₹6,000 but held that its 50% future-prospects addition was inconsistent with the applicable law.

Because the deceased was 40 and self-employed, the Court added 25%, producing a monthly income of ₹7,500 and annual income of ₹90,000.

With two dependants, it deducted one-third for personal expenses and applied a multiplier of 15, resulting in ₹9,00,000 for dependency.

It then awarded ₹40,000 to each claimant for consortium, and ₹15,000 each for loss of estate and funeral expenses, for a total of ₹10,10,000.

The insurer was entitled to recover the excess ₹2,95,000 in a lump sum if that amount had already been deposited.