Widow Of Cyclist Killed By Bus Gets Higher Compensation As Gauhati HC Adds 25% Future Prospects For Self-Employed Husband

The appellant, widow of Biren Lodh, sought compensation under Section 166 of the Motor Vehicles Act, 1988, after her husband was fatally struck by a bus on 27 March 2009.

The Tribunal found that the accident resulted from the driver’s rash and negligent driving and awarded Rs. 3,48,000, calculating dependency on a monthly income of Rs. 3,000 and adding modest amounts under conventional heads.

The claimant appealed under Section 173, seeking enhancement; the insurer’s liability was not challenged in this appeal

Under Section 166 of the Motor Vehicles Act, compensation must be just.

Sarla Verma (Smt.) v. Delhi Transport Corporation, [2009] 6 SCC 121, guides the deduction for personal expenses and selection of the multiplier; for a deceased aged 45, the applicable multiplier is 14

National Insurance Co. Ltd. v. Pranay Sethi, [2017] 16 SCC 680, permits a 25% addition for future prospects for a self-employed person aged 40 to 50, and sets conventional-head amounts of Rs. 15,000 for loss of estate, Rs. 40,000 for loss of consortium and Rs. 15,000 for funeral expenses, subject to 10% enhancement every three years

The Court treated the deceased as self-employed because he had no permanent salaried employment.

It declined to increase his income to Rs. 6,000 per month because the claimant had produced no evidence of the bicycle-repair shop or the asserted earnings, and therefore retained the Tribunal’s figure of Rs. 3,000

Applying Pranay Sethi, it added 25% for future prospects; after deducting one-third for personal expenses and applying multiplier 14, it calculated loss of dependency at Rs. 4,20,000.

It also revised the conventional-head amounts in accordance with that decision

The Court held that the claimant was entitled to enhancement while leaving the monthly-income finding undisturbed.

It directed the insurer to pay Rs. 72,000 as additional loss-of-dependency compensation, with 6% annual interest from the date of the claim application until payment, and a further Rs. 72,700 under conventional heads within two months.

The Tribunal was directed to disburse the deposited amount to the claimant upon identification