In determining compensation for loss of dependency, courts must consider the deceased's variable income, assess personal expenses appropriately, and apply future prospects based on employment status.

JUDGMENT :

PRATEEK JALAN, J.

1. The appellant-Oriental Insurance Company Limited [“Insurance Company”] challenges an award dated 21.09.2013, passed by the Motor Accident Claims Tribunal [“the Tribunal”] in MACT No. 205/2011. By the said award, the Tribunal granted compensation at Rs. 69,48,600/- alongwith interest at the rate of 9% per annum.

A. FACTS AND IMPUGNED AWARD

2. The proceedings before the Tribunal arose from a fatal accident, which took place on 10.03.2011 at about 8:30 PM, resulting in the death of one Mr. Naveen Kumar Misra. The deceased was riding his motorcycle [bearing No. DL-9S-V-8687], when a tanker [bearing registration No. 1G-B-3778] [“the insured vehicle”] struck him from behind, causing him to fall. He was subsequently run over by the insured vehicle. He was taken to Bhagwan Mahavir Hospital, where he was declared brought dead.

3. An FIR was lodged against the driver of the insured vehicle, bearing FIR No. 100/2011 in Police Station Mangol Puri, under Sections 279 and 304A of the Indian Penal Code, 1860. A chargesheet has also been filed in the criminal proceedings under Section 173 of the Code of Criminal Procedure, 1973.

4. The deceased was 32 years old at the time of the accident, and is survived by his wife, two children, and parents [respondent Nos. 1 to 5 herein]. In addition to the Insurance Company, the driver and owner of the insured vehicle [respondent Nos. 6 and 7 herein] were arrayed as respondents before the Tribunal.

5. Upon submission of a Detailed Accident Report [“DAR”], the Tribunal returned a finding of rash and negligent driving against the driver of the insured vehicle, and assessed compensation payable to the claimants at Rs. 69,48,600/-, alongwith interest at the rate of 9% per annum, under the following heads:

6. The Insurance Company is in appeal. The claimants, as well as the driver and owner of the insured vehicle have been impleaded as respondent Nos. 1 to 7 respectively in this appeal. During the pendency of the appeal, respondent Nos. 4 and 5 herein [parents of the deceased] passed away, and were accordingly deleted from the array of parties vide order dated 28.08.2024.

7. The appeal is limited to the question of quantum of compensation.

B. SUBMISSIONS BY THE LEARNED COUNSEL FOR PARTIES

8. I have heard Mr. Pradeep Gaur, learned counsel for the Insurance Company, and Mr. Manish Maini, learned counsel for the claimants.

9. Mr. Gaur challenged the impugned award on the following grounds:

A. The Tribunal erred in assessing loss of dependency by taking the monthly income as reflected in the last salary slip of the deceased. Mr. Gaur submitted that the deceased had a variable income and had been in employment for only about five months. He, therefore, contended that an average of all his salary slips ought to have been taken. He further submitted that the Tribunal ought to have excluded allowances and tax liability, which did not form part of the deceased's income. B. The Tribunal deducted only 25% of the income towards personal and living expenses of the deceased. He submitted that, having rega