The court clarified that future prospects for self-employed individuals below 40 years should be limited to 40%, and dependency must be assessed accurately based on family composition.

JUDGMENT :

K. VINOD CHANDRAN, J.

1. Leave granted.

2. The appellants who were the claimants before the Tribunal sought compensation for the death of the wife of the first appellant whose children are second and third appellants. The claim arose from the death of a pillion rider in an accident which occurred on 22.02.2015, as a result of which the pillion rider succumbed to the injuries sustained in the accident; two days later i.e. on 24.02.2015.

3. Before the Tribunal, the claimants asserted an income of Rs. 15,000/- for the deceased, while she was alive, claiming her to be a Coolie. The Tribunal considering the unspecified work in which the deceased was employed, took the income at Rs. 7,000 and reduced 1/3rd of the income determined for personal expenses; finding the husband to be not dependent on the deceased, in which event the dependant family consisted of the deceased and her two children. Fifty percent was added for future prospects and considering the age of the deceased, i.e. 35 years, a multiplier of 16 was applied, determining the total loss at Rs. 13,44,000/-. On other heads also compensation was awarded totalling Rs. 18,81,966/- as shown hereinbelow:

4. The insurance company filed appeal before the High Court against the award also alleging that the accident was not due to the rash and negligent driving of the motor cycle, based on the eye-witness testimony and also the charge-sheet registered against the driver. The High Court found the accident to have been caused due to the rash and negligent driving of the driver of the bike, whose owner is indemnified by the insurance company. We find no reason to differ from the said findings.

5. The next issue considered was as to whether the petitioner No.1 is a dependent. The husband of the deceased was not a dependent though he was a legal heir especially since he was an abled bodied person of 40 years, was the finding.

6. As far as the income of deceased though Rs. 15,000/- was claimed, the income determined by the Tribunal was Rs. 7,000. The High Court enhanced the income to Rs. 8,000/-; though there was no appeal by the claimants.

7. The deduction applicable for personal expenses was fixed at 1/3rd, considering the dependent family as one comprised of the deceased and only two children. However, we are of the opinion that since there was no employment specified of the husband, it cannot be assumed that he would not have been at least partially dependent on the income of the deceased. Hence the family has to be comprised of 4 in which circumstances the deduction for personal expenses shall be at 1/4th.

8. As far as the additions are concerned, the Tribunal accepted 50% as future prospects, which the High Court deleted. In National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, a Constitution Bench, insofar as a self-employed person below the age of 40 years, declared an addition for future prospects, which was limited to 40%. The appropriate multiplier to be applied was taken as 16 since the deceased was aged 35 years. The future prospects of 50% as awarded by the Tribunal was deleted which is proper, but this has to be granted at the rate of 40%. For loss of estate and funeral expenses, Rs. 15,000/- was granted while for loss of consortium a sum of Rs. 40,000/- was granted. In New India Assurance Company vs. Somwati, 2020 (9) SCC 644 held that loss of consortium is not restricted to the wife alone but has to be awarded to the children and parents.

9. Since there was no appeal filed from the order of the Tribunal determining the income at Rs. 7,000/-,