Punjab and Haryana HC increases payout for man’s death in 2016 road accident by Rs 10 lakh: what changed the math

The Punjab and Haryana High Court has nearly doubled the compensation amount awarded by the Motor Accident Claims Tribunal (MACT) in Hisar to the parents of a 30-year-old man who was killed in a road accident nearly a decade ago.

Justice Harkesh Manuja on Thursday increased the compensation from Rs 13,52,022 to Rs 24,16,800, marking an enhancement of Rs 10,64,778.

The case relates to the death of Bhupender alias Vicky, who was killed in a motor vehicle accident on June 11, 2016. His parents had challenged the tribunal’s 2018 award, arguing that their son’s income was grossly underestimated and that several legal principles on compensation were wrongly applied.

The tribunal had fixed the deceased’s monthly income at Rs 9,258, treating him as an unskilled worker. The appellants claimed he was a qualified electrician from ITI Hisar, earning Rs 50,000 per month.

While no documentary proof of income was produced, Justice Manuja relied on Supreme Court guidelines to arrive at a more realistic figure.

The court observed: “Considering the facts of the present case, it is a matter of common knowledge that a person working as electrician who had acquired his requisite technical qualification from ITI, Hisar would have a reasonable and steady source of income, sufficient to maintain himself and contribute to his family.”

Citing precedents, including Kubra Bibi vs Oriental Insurance Co Ltd (2023) and Chandra @ Chanda @ Chandraram vs Mukesh Kumar Yadav & Ors (2022), the judge fixed the deceased’s notional monthly income at Rs 12,000 (Rs 400 per day × 30 days).

The court added 40 per cent towards future prospects, applied a one-third deduction towards personal expenses (instead of the usual 50% for bachelors), and used the multiplier of 17 corresponding to the deceased’s age of 30 years.

On personal expenses, the judgment noted the special circumstances of the case: “In the given case, it has come on record that the deceased was survived by aged parents. Evidently, being the sole earning member of the family, the deceased was under moral and social obligation to contribute some amount towards the maintenance of his aged parents… the deduction is assessed at one-third (1/3rd) of the income.”

Additional amounts under conventional heads were also revised. The parents received Rs 18,000 for funeral expenses, Rs 18,000 for loss of estate, and Rs 96,000 (Rs 48,000 each) towards loss of filial consortium.

The final calculation awarded Rs 22,84,800 towards loss of dependency, plus the conventional amounts, totalling Rs 24,16,800.

Interest at 9 per cent per annum from the date of filing the claim petition was retained. The court directed that if the enhanced amount is not paid within three months, it shall carry 12 per cent interest thereafter.

The insurance company did not contest liability or negligence but argued that the tribunal’s award needed no interference. The court, however, found merit in the parents’ appeal and enhanced the compensation accordingly.

The appeal was disposed of with these modifications.