With four dependants, only one-fourth of the deceased’s income is deductible for personal expenses.

Nilesh Yadav, aged approximately 27 years, died in a motor vehicle accident on 24 December 2021 involving motorcycle No. C.G. 09 JG 1678.

The appellants, being his widow and family members, filed a claim petition before the 1st Additional Motor Accident Claims Tribunal, Raipur. The Tribunal awarded compensation of Rs.18,65,520/- under its award dated 21 December 2022 in Claim Case No.196/2022.

The claimants contended that the deceased was employed at Prabhat Graphics and earned Rs.15,000/- per month.

The employer, Prabhat Tamboli, was examined and produced an income certificate, GST registration certificate, and vouchers evidencing payments made to the deceased.

The Tribunal assessed the deceased’s monthly income at Rs.8,800/-, deducted one-third towards personal expenses, and awarded Rs.1,90,000/- under conventional heads.

In appeal under Section 173 of the Motor Vehicles Act, 1988, the claimants sought enhancement on the grounds that the income had been assessed too low, the deduction should have been one-fourth because there were four claimants, and the amount under conventional heads was inadequate.

Whether the deceased’s monthly income should have been assessed above Rs.8,800/- on the basis of the oral and documentary evidence produced by the claimants?

Whether the deduction towards the deceased’s personal and living expenses should be one-fourth instead of one-third?

Whether the compensation awarded under the conventional heads required enhancement?

The Court exercised appellate jurisdiction under Section 173 of the Motor Vehicles Act, 1988 in reviewing the adequacy of compensation.

For computation of dependency compensation, it applied National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, particularly the principles concerning addition for future prospects and conventional heads; Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, concerning the appropriate multiplier and deduction for personal expenses; and Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 1305, concerning compensation under conventional heads.

For a deceased aged 27 years, the Court applied a multiplier of 17 and added 40% towards future prospects.

Where there are four dependants, one-fourth is deductible towards personal and living expenses.

The Court found that although the employer’s evidence did not fully establish the claimed income of Rs.15,000/- per month—particularly because the deceased lacked formal qualifications in computer or flex-printing work—the evidence, including the employer’s testimony, GST registration, income certificate, and payment vouchers, sufficiently established that the deceased was employed in a printing press.

Accordingly, it assessed his monthly income at Rs.12,000/-. Applying a 40% addition for future prospects, the annual income was enhanced to Rs.2,01,600/-.

Since there were four claimants, the Court deducted one-fourth, leaving an annual dependency of Rs.1,51,200/-.

Applying the multiplier of 17 resulted in loss of dependency of Rs.25,70,400/-.

The Court further enhanced the conventional-head compensation from Rs.1,90,000/- to Rs.2,09,000/- in accordance with the governing Supreme Court precedents.

The total compensation was enhanced from Rs.18,65,520/- to Rs.27,79,400/-.

After deducting the amount already awarded, the appellants were held entitled to an additional Rs.9,13,880/-, carrying interest at 6% per annum from the date of filing of the claim application until realization.

The remaining terms and conditions of the Tribunal’s award were kept intact, and the Registry was directed to communicate the enhanced amount to the claimants in Hindi Devanagari, with assistance from paralegal workers where necessary.