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2026 Supreme(Online)(Guj) 14212

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Mool Chand Tyagi, J
THE ORIENTAL INSURANCE CO. LTDV/sNIRMALABEN DEVRAJBHAI HINSU
R/FIRST APPEAL NO. 1275 of 2020 | R/CROSS OBJECTION NO. 54 of 2021



Advocates:
For the Appellants/Petitioners: VC Thomas
For the Respondents: Hemal Shah

The court established that in motor accident claims, agricultural income should be treated as supervisory loss based on minimum wages, and compensation must be calculated using future prospects, standard multipliers, and specific deductions for personal expenses and consortium.

Headnote:(A) Motor Accident Compensation - Calculation of Income - Agricultural Income - Where the deceased is a salaried employee and also engages in agriculture, the court should consider the loss of supervisory income for agriculture based on minimum wages for unskilled workers. (Para 8)

(B) Future Prospects - Age of Deceased - Application of 15% enhancement for a deceased aged 54 years as per the ratio in Pranay Sethi. (Para 9)

(C) Dependency and Deductions - Personal Expenses - For a married deceased, a deduction of 1/3rd of the notional income is applicable for calculating loss of dependency. (Para 10)

(D) Loss of Consortium - Legal Representatives - All legal representatives are entitled to compensation under the head of loss of consortium. (Para 12)

Issues: Whether the compensation awarded by the Tribunal should be reduced or enhanced based on the income and dependency of the deceased.

Table of Content
1. summary of the accident, the initial tribunal award, and the filing of the appeal. (Para 1 , 2 , 3)
2. arguments regarding the calculation of agricultural income and the proportion of personal expense deductions. (Para 4 , 5 , 6)
3. determination of total income by combining salary and supervisory agricultural loss. (Para 7 , 8)
4. calculation of future loss of dependency using future prospects, personal expense deductions, and the multiplier. (Para 9 , 10 , 11)
5. determination of compensation for loss of consortium, estate, and funeral expenses. (Para 12 , 13)
6. final computation of enhanced compensation and the resulting order to modify the tribunal's award. (Para 14 , 15 , 16 , 17 , 18 , 19)

JUDGMENT

1. The captioned appeal and cross objections have been preferred against the impugned judgment and award dated 19.09.2019 passed by the learned Motor Accident Claims Tribunal (Main), at Jamnagar, in M.A.C.P. No. 100 of 2012, whereby the learned Tribunal had partly allowed the Claim Petition and awarded a sum of 35,41,160/- along with interest at the rate of 9% per annum, from the date of filing of the claim petition till its realization, as compensation.

2. The succinct facts, which led to the filing of the captioned appeal, as explained by the learned counsel for the original claimants and as narrated in the Claim Petition are summarized as under:-

i. On 20.12.2011 Mr. Devraj Arjanbhai Hinsu (hereinafter referred to as the “deceased”) was crossing road to attend Sadbhavna Upvas Karyakram, opposite to Krishna Hotel on Rajkot-Jamnagar Highway. In the meantime,, one Tavera Jeep bearing registration No.GJ-3Z-9612, being driven by original opponent No.1 at very excessive speed and in a rash and negligent manner, dashed with the deceased, thereby causing the accident. As a result of the said vehicular accident, the deceased sustained serious injuries and he succumbed to the said injuries.

ii. It is the case of the original claimants before the learned Tribunal that at the time of the vehicular accident, the deceased was aged about 54 years, and was working as Principal in a primary school at Itala Village, thereby earning the salary of Rs.35,899/-. In addition to the said job, the deceased was also earning Rs.25,000/- per month from agriculture. Therefore, the Original Claimant preferred the Claim Petition before the learned Tribunal seeking compensation to the tune of Rs.65,00,000/-.

iii.Having been served with the notice/summon of the Claim Petition, original opponent No.3/appellant herein filed its Written Statement, thereby denying the averments made in the Claim Petition, and in brief, prayed for dismissal of the Claim Petition.

iv.Having considered the pleadings of the parties and the material available on record, the learned Tribunal framed the following issues, for determination:-

i. Whether the petitioners prove that the deceased died due to injuries sustained by him in a vehicular accident due to rash and/or negligent driving of the driver of the motor vehicles involved in the said accident ?

ii. Whether the petitioners are entitled to compensation ? If yes, what amount and from whom ?

iii. What award ?

v. Having considered the pleadings, evidence on record and the submissions advanced by the learned counsels for the respective parties, the learned Tribunal had partly allowed the Claim Petition and awarded a sum of 35,41,160/- along with interest at the rate of 9% per annum, from the date of filing of the claim petition till its realization, as compensation.

vi. Being aggrieved and dissatisfied with the impugned judgment and award, the appellant – Insurance Company has challenged the impugned judgment and award seeking reduction of compensation awarded by the learned Tribunal, while, the original claimants have challenged the impugned judgment and award seeking enhancement of compensation awarded by the learned Tribunal.

3. Heard learned counsels for the parties.

4. Mr. V C Thomas, learne

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