MAC.APP./72/2014 of KIRAN LAKRA Vs IFFCO TOKIO GEN. INS. CO. LTD. & ORS on 24 September 2026

O R D E R

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24.09.2026

1. This appeal has been filed by appellant/claimant seeking enhancement of compensation awarded by the Motor Accident Claims Tribunal, Dwarka Courts, New Delhi [‘MACT/Tribunal’], vide award dated 16th November 2013, whereby compensation of Rs. 8,78,862/-, along with interest at the rate of 7.5% per annum, was awarded, in relation to an accident which occurred on 09th May 2013, when the deceased, Prakash Kispotta, was riding his motorcycle and was hit by the offending vehicle.

2. Mr. Sunil Kumar Verma, counsel for appellant/claimant, claims enhancement on the following grounds, which are dealt with as under: i) Firstly, that notional income of the deceased was taken basis minimum wages of a graduate, at Rs.10,218/- per month; however, no future prospects were granted. The deceased had completed 40 years of age on the date of the accident. Accordingly, future prospects shall be granted at 25%; ii) Secondly, that the multiplier was incorrectly awarded at 14. However, in terms of the standardisation provided by the Supreme Court in National Insurance Company v. Pranay Sethi & Ors. (2017) 16 SCC 680, the multiplier of ‘15’ shall be adopted;

3. The Court notes that other components of compensation also need to be aligned, in terms of the directions passed by the Supreme Court in Pranay Sethi (supra). Accordingly, loss of consortium shall be awarded at Rs.40,000/-, considering that there was only one dependent, i.e. wife; loss of estate and funeral expense shall be awarded at Rs.15,000/- each.

4. Further, no deduction has been made by the MACT, towards personal and living expenses. Instead, the MACT has considered 1/3rd of the notional income and taken that amount as the component of loss to wife. The same shall be aligned with the principles enunciated by the Supreme Court in Sarla Verma v. DTC, (2009) 6 SCC 121 and Pranay Sethi (supra). Accordingly, deduction towards personal and living expenses reduction shall be made at 1/3rd.

5. The revised compensation shall therefore be calculated as under: S. NO. HEADS AWARDED BY THE TRIBUNAL AWARDED BY THIS COURT

1. Monthly income of deceased (A) Rs. 10,218/- Rs. 10,218/-

2. Loss of income per annum [Awarded by Rs. 40,872/- [Calculated @ (1/3rd of NIL

MACT] monthly income) X 12]

3. Add Future Prospects (B) @10% Rs. 53,133/- [@30%] Rs. 12,772.5/- [@25%]

4. Less Personal expenses of the deceased (C) NIL

Rs. 4,257.5/- [@1/3rd]

5. Monthly loss of dependency [B-C = D] Awarded on an annual basis Rs. 8,515/-

6. Annual loss of dependency (Dx12) Rs. 53,133/- Rs. 1,02,180/-

7. Multiplier (E)

8. Total loss of dependency (Dx12xE = F) Rs. 7,43,862/-

Rs. 15,32,700/-

9. Compensation for loss of consortium (G) Rs. 1,00,000/- Rs. 40,000/-

10. Compensation for loss of estate (H) Rs. 10,000/- Rs. 15,000/-

11. Compensation towards funeral expenses (I) Rs. 25,000/- Rs. 15,000/-

12. Total compensation (F+G+H+I = J) Rs. 8,78,862/- Rs. 16,02,700/-

13. Interest 7.5% 7.5%

14. Reduced amount Rs. 7,23,838/-

Directions

6. For aforesaid reasons, compensation has been enhanced by Rs.7,23,838/- [‘enhanced amount’].

7. It is, therefore, directed that enhanced amount, along with interest @ 7.5% per annum, be deposited before the MACT within a period of six weeks.

8. It is further directed that a lump sum amount of Rs. 5,00,000/- shall be released to the claimant from the deposit of the compensation amount within a period of two weeks thereafter. Remaining amount, along with accrued interest, shall be kept in Fixed Deposit Receipts (FDRs) of Rs. 20,000/- each for periods of 1 month, 2 months, 3 months and so on, in succession as maybe calculated. Interest accruing on said FDRs shall be credited to the designated Savings Bank Account of claimant. The amount of FDRs on maturity would be released to the Savings Bank Account of claimant upon due verification.

9. The originally awarded amount, if not already released, shall be released in favour of appellant/claimant, in terms of the directions passed by the MACT vide impugned award.

10. Accordingly, the appeal is disposed of.

11. Pending applications, if any, are rendered infructuous.

12. Order be uploaded on the website of this Court.

ANISH DAYAL, J SEPTEMBER 24, 2026/MK/ya