MAC.APP./1180/2013 of NATIONAL INSURANCE CO LTD Vs SMT UMA DEVI AND ORS on 9 September 2026

O R D E R

%

09.09.2026

1. This appeal has been filed assailing the impugned Award dated 19th August 2013 passed by Motor Accident Claims Tribunal, Rohini Courts, Delhi (‘Tribunal/MACT’) in MACT no. 471/09/13, whereby compensation of Rs.28,77,000/- along with interest at 9% per annum was awarded.

2. Ms. Shruti Jain, counsel for appellant/Insurance Company, challenges the quantum of compensation on the following grounds, which are assessed as under: i. On the issue of notional income of the deceased, she states that no evidence was placed on record regarding alleged notional income of Rs.12,000/- per month. However, it is noted that, in paragraph no. 10 of the MACT’s award, MACT undertook a detailed assessment, including the testimony of PW2 (Suresh Kumar, proprietor of M/s Prerna Travels, who even though was the relative of the deceased/Rajesh). PW2, in his examination, deposed that he had been paying salary to the deceased in cash. He produced copies of receipts/vouchers, exhibited as Ex. PW2/2, pertaining to the years 2008-2009, and further proved documents relating to his business/proprietorship, cash summaries, income tax returns, and profit and loss statements. Based on this assessment and the salary certificate (Ex. P-2), the income of the deceased was assessed at Rs. 12,000/- per month. The Court does not find any infirmity in the said assessment and, accordingly, the same is retained. ii. Future prospects were awarded at 50%. However, as per principles laid down in National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680, since the deceased was 35 years of age and in private employment, future prospects are liable to be restricted to 40%. iii. Funeral charges were awarded at Rs.25,000/-, which ought to be awarded at Rs.15,000/- as per Pranay Sethi (supra). iv. Likewise, Loss of estate was awarded at Rs.10,000/-, which ought to be awarded at Rs.15,000/-. v. Loss of consortium was awarded at Rs.1,00,000/-, which ought to be awarded at Rs.2,80,000/- (Rs.40,000/- to each claimant namely, widow, father, mother and 4 minor children. vi. Loss of love, company and affection will be absorbed in loss of consortium as per United India Insurance Co. Ltd. v. Satinder Kaur

@ Satwinder Kaur and Ors. (2021) 11 SCC 780 and, therefore, stands reduced. vii. Loss of gratuitous services was awarded at Rs.50,000/- on account of notional loss of care, attention and expenses, which is not a component of compensation post Sarla Verma & Ors v. Delhi Transport Corp. & Anr. (2009) 6 SCC 121 and Pranay Sethi (supra) and ought to be deleted.

3. Accordingly, compensation is revised as under: Sr. No. Heads Awarded by the Tribunal Awarded by the Court

1. Monthly income of the deceased (A)

Rs. 12,000/-

Rs. 12,000/-

2. Add-Future Prospects (B) 50% 40% of Rs. 12,0000/- = Rs. 4,800/-

3. Less-personal expenses of the deceased (C) 1/4 of Rs. 18000/- = Rs. 4,500/-

1/4 of Rs. 16,800 = Rs. 4,200/-

4. Annual loss of dependency [(A+B) - C ] x 12= D] Rs. 1,62,000/-

Rs. 1,51,200/-

5. Multiplier (E)

6. Total loss of dependency (D x E) = (F) Rs. 25,92,000/-

Rs. 24,19,200/-

7. Compensation for loss of love and affection (G) Rs. 1,00,000/-

NIL

8. Compensation for loss of consortium (H)

Rs. 1,00,000/-

Rs. 2,80,000/-

9. Compensation for loss of estate (I)

Rs. 10,000/-

Rs. 15,000/-

10. Compensation towards funeral expenses (J)

Rs. 25,000/-

Rs. 15,000/-

Loss of gratuitous services Rs. 50,000/- NIL

12. Total Compensation (F+G+H+I+J = K)

Rs. 28,77,000/-

Rs. 27,29,200/-

13. Interest Awarded 9% per annum 9% per annum

14. Reduced Compensation Rs. 1,47,800/-

4. Accordingly, the compensation is reduced by Rs. 1,47,800/- (‘reduced compensation’).

5. By order dated 20th December 2013, 70% of compensation was directed to be released as per the directions of the MACT in the impugned award.

6. Now, since the appeal stands disposed of, the balance amount (original compensation - reduced compensation), along with accrued interest, shall be released to the claimants in a lump sum, considering that the Award pertains to the year 2013 and the accident occurred in the year 2009.

7. In view of the reduction in the compensation awarded, the excess amount lying deposited, along with the accrued interest, shall be refunded to the Insurance Company.

8. Appeal stands disposed of in the above terms. Pending applications are rendered infructuous.

9. Statutory deposit, if any, be refunded to the Insurance Company.

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

ANISH DAYAL, J SEPTEMBER 9, 2026/ak/bp