Bombay High Court Allows Appeal in Motor Accident Claim for Deceased Student - Compensation Enhanced. Notional income of Rs. 10,000/- upheld, multiplier corrected to 18, future prospects at 40% granted, and conventional heads enhanced under Section 166 of Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: KOLHAPUR In Favour of Accused

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2026-05-18 16:59:25

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Case Note & Summary

The present appeal arises from a judgment and award dated 02.09.2024 passed by the Motor Accident Claims Tribunal, Phaltan, in MACP No. 15/2024, whereby the Tribunal awarded Rs. 13,28,300/- with interest at 9% per annum to the claimants, who are the parents and siblings of the deceased Parvani Sanjay Kakade. The deceased, a 21-year-old student, died in a motor vehicle accident. The claimants sought enhancement of compensation, contending that the Tribunal erred in assessing the notional income at Rs. 10,000/- per month, applying a multiplier of 15 instead of 18, deducting 50% towards personal expenses, and not granting future prospects and adequate conventional damages. The respondents, owner and insurance company, supported the award. The High Court, after hearing counsel, held that the notional income of Rs. 10,000/- was just and proper given the deceased was a student and the parents were agriculturists. The deduction of 50% for personal expenses was correct as per law for a bachelor. However, the multiplier was corrected to 18 as per Sarla Verma, and future prospects at 40% were added as per Pranay Sethi. The conventional heads were revised: loss of estate and funeral expenses each increased to Rs. 18,150/-, and loss of consortium of Rs. 48,400/- each was awarded to the parents. The total compensation was recalculated as Rs. 18,18,000/- with interest at 9% per annum from the date of claim till realization. The appeal was partly allowed.

Headnote

A) Motor Accident Compensation - Assessment of Notional Income - Deceased Student - Where the deceased was a 21-year-old student with no established income, the Tribunal's assessment of notional income at Rs. 10,000/- per month based on minimum wages and family background is upheld as reasonable - The High Court found no error in the Tribunal's approach as the deceased was a student and the parents were agriculturists, thus the notional income of Rs. 10,000/- is just and proper (Paras 6-7).

B) Motor Accident Compensation - Deduction for Personal Expenses - Bachelor - For a deceased bachelor, deduction of 50% towards personal expenses is correct as per settled law - The Tribunal's deduction of 50% is upheld (Para 8).

C) Motor Accident Compensation - Multiplier - Age of Deceased - For a deceased aged 21 years, the appropriate multiplier is 18 as per the Sarla Verma case - The Tribunal erroneously applied multiplier of 15, which is corrected to 18 (Para 9).

D) Motor Accident Compensation - Future Prospects - Self-Employed/Fixed Salary - For a deceased aged 21 years, future prospects at 40% are permissible as per Pranay Sethi guidelines - The Tribunal failed to grant future prospects, which is corrected (Para 10).

E) Motor Accident Compensation - Conventional Heads - Loss of Estate, Funeral Expenses, Loss of Consortium - As per Pranay Sethi, conventional heads must be granted - The Tribunal granted only Rs. 15,000/- for loss of estate and Rs. 15,000/- for funeral expenses, but failed to grant loss of consortium to the parents - The High Court awards Rs. 18,150/- for loss of estate, Rs. 18,150/- for funeral expenses, and Rs. 48,400/- each to the parents for loss of consortium (Paras 11-12).

Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal for the death of a 21-year-old student is just and proper, particularly regarding the assessment of notional income, deduction for personal expenses, multiplier, and future prospects.

Final Decision

The appeal is partly allowed. The impugned judgment and award is modified. The total compensation is enhanced from Rs. 13,28,300/- to Rs. 18,18,000/-. The enhanced amount of Rs. 4,89,700/- shall carry interest at the rate of 9% per annum from the date of claim application till realization. The respondents are jointly and severally liable to pay the compensation. The insurance company is directed to deposit the enhanced amount within eight weeks.

Law Points

Notional income for a student with no established income can be assessed based on minimum wages or family background
Deduction of 50% towards personal expenses for a bachelor is correct
Multiplier of 18 is applicable for age group of 21-25 years
Future prospects at 40% are permissible for self-employed or fixed salary earners under 40 years
Compensation under conventional heads must be granted as per Pranay Sethi guidelines

Case Details

2026:BHC-KOL:2688

First Appeal No. 279 of 2025

2026-04-10

M. M. Sathaye

2026:BHC-KOL:2688

Mr. Santosh Bhosale a/w Amol S. Deshinge for the Appellants, Mr. Avesh Ghadge h/f Shalini Shankar for Respondent No. 2-Insurance Company, Mr. Ruturaj U. Kadam i/b Shankar Katkar for Respondent No. 1

Sanjay Laxman Kakade, Jyoti Sanjay Kakade, Vaishnavi Sanjay Kakade, Lokesh Sanjay Kakade, Madhavi Sanjay Kakade

Ajinath Shankar Tele, Divisional Manager, Sriram General Insurance Co. Ltd.

Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition under Section 166 of the Motor Vehicles Act, 1988 for compensation for death of a 21-year-old student in a motor vehicle accident.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

Claimants (parents and siblings of deceased) were dissatisfied with the quantum of compensation awarded by the Tribunal.

Previous Decisions

Motor Accident Claims Tribunal, Phaltan, by judgment and award dated 02.09.2024 in MACP No. 15/2024, awarded Rs. 13,28,300/- with interest @ 9% p.a. from the date of claim application till realization, holding both respondents jointly and severally liable.

Issues

Whether the notional income of the deceased assessed at Rs. 10,000/- per month is just and proper? Whether the deduction of 50% towards personal expenses for a bachelor is correct? Whether the multiplier of 15 applied by the Tribunal is appropriate? Whether future prospects should be added to the income of the deceased? Whether the compensation under conventional heads is adequate?

Submissions/Arguments

Appellants argued that the notional income should be higher, multiplier should be 18, future prospects should be granted, and conventional heads should be enhanced. Respondents supported the Tribunal's award, contending it was just and proper.

Ratio Decidendi

For a deceased bachelor aged 21 years with no established income, notional income can be assessed based on minimum wages and family background; deduction of 50% for personal expenses is correct; multiplier of 18 applies; future prospects at 40% are permissible; conventional heads must be granted as per Pranay Sethi guidelines.

Judgment Excerpts

Considering the narrow controversy involved, the Appeal is taken up for final disposal by consent of learned counsel for the parties. The Appellants are parents and siblings of deceased Parvani Sanjay Kakade. The Tribunal has assessed the notional income of the deceased at Rs. 10,000/- per month. The deduction of 50% towards personal expenses is correct as per law. The appropriate multiplier for the age of 21 years is 18. Future prospects at 40% are permissible as per Pranay Sethi. The compensation under conventional heads is enhanced.

Procedural History

The claimants filed MACP No. 15/2024 before the Motor Accident Claims Tribunal, Phaltan, which was decided on 02.09.2024 awarding Rs. 13,28,300/-. Aggrieved, the claimants filed First Appeal No. 279 of 2025 before the Bombay High Court, Circuit Bench at Kolhapur, which was admitted and finally disposed of on 10.04.2026.