Punjab & Haryana High Court Enhances Compensation to ₹22.52 Lakh for 32-Year-Old Self-Employed Victim, Corrects Future Prospects and Consortium Amounts
Case Name: Maina Devi and Another v. Rakesh Kumar and Others
Date of Judgment: October 9, 2025
Citation: FAO-3844-2014
Bench: Hon’ble Mrs. Justice Sudeépti Sharma
Held: The Punjab & Haryana High Court enhanced compensation to ₹22.52 lakh in a motor accident claim, modifying the Tribunal’s award of ₹23.10 lakh by correcting calculation errors related to future prospects and consortium amounts. Justice Sudeépti Sharma held that while the Tribunal correctly assessed the deceased’s income at ₹10,000 per month, it erred in adding 50% for future prospects instead of 40%, as mandated for self-employed persons below 40 years under National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680. The Court also increased compensation under conventional heads, including consortium, loss of estate, and funeral expenses, in line with Magma General Insurance Co. Ltd. v. Nanu Ram (2018) 18 SCC 130.
Summary: The appeal arose from a Tribunal award dated April 12, 2014, granting ₹23.10 lakh compensation with 7.5% interest for the death of Montu, aged 32, in a motor accident on November 5, 2012. The claimants sought enhancement, contending that the compensation under consortium and other heads was inadequate. The Insurance Company, on the other hand, argued that the awarded amount was excessive.
Justice Sharma referred to the precedents in Sarla Verma v. DTC (2009) 6 SCC 121, Pranay Sethi (supra), and Magma General Insurance (supra), outlining the principles for assessing dependency, multiplier selection, and conventional heads. The Court observed that the deceased was self-employed and thus eligible for a 40% addition for future prospects. The monthly income was assessed at ₹10,000, and after deducting one-fourth for personal expenses, the dependency was fixed at ₹10,500 per month, with a multiplier of 16.
In addition, the Court awarded ₹18,150 towards loss of estate, ₹25,000 towards funeral expenses, and ₹1,93,600 towards consortium (spousal, filial, and parental). The total compensation was thus recalculated at ₹22,52,750, resulting in an enhancement of ₹57,250 over the Tribunal’s award.
Decision: The High Court allowed the appeal in part, enhancing the compensation to ₹22.52 lakh with 9% annual interest from the date of filing the claim petition till realization. The Insurance Company was directed to deposit the enhanced amount within two months for disbursement as per the Tribunal’s apportionment order.