Gujarat High Court Allows Appeal in Motor Accident Claim for Retired Employee — Pension Income Considered for Loss of Dependency. Compensation Enhanced from Rs.8,03,867/- to Rs.16,54,000/- with 9% Interest.

High Court: Gujarat High Court In Favour of Accused

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2026-05-19 06:53:43

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Case Note & Summary

The case pertains to a motor accident claim arising from a fatal accident on 22.02.2014. The deceased, Kadarbhai, was a passenger in a rickshaw when a motorcycle driven rashly by respondent No.1 collided with the rickshaw, causing fatal injuries. The deceased was aged 59 years and was a retired Livestock Inspector receiving a monthly pension of Rs.22,000/-. The claimants, being the widow and children, filed a claim petition seeking compensation of Rs.21,00,000/-. The Motor Accident Claims Tribunal partly allowed the claim and awarded Rs.8,03,867/- with 9% interest. The appellants challenged the award seeking enhancement. The High Court found that the Tribunal had erred in not considering the pension income for computing loss of dependency. The court held that pension is a regular income and should be included. Applying the multiplier of 9 (as per Sarla Verma) and deducting 1/3rd for personal expenses, the loss of dependency was computed as Rs.15,84,000/-. Adding conventional heads of Rs.70,000/- (loss of consortium, loss of estate, funeral expenses), the total compensation was enhanced to Rs.16,54,000/-. The court also awarded interest at 9% per annum from the date of filing of the claim petition till realization. The appeal was partly allowed, enhancing the compensation.

Headnote

A) Motor Accident Claims - Compensation - Loss of Dependency - Pension Income - The deceased was a retired government employee receiving pension of Rs.22,000/- per month. The court held that pension is a regular income and must be considered for computing loss of dependency. The Tribunal had erred in not considering the pension income. (Paras 3-6)

B) Motor Accident Claims - Compensation - Multiplier - Age of Deceased - The deceased was aged 59 years at the time of accident. The court applied multiplier of 9 as per Sarla Verma v. DTC, (2009) 6 SCC 121. (Para 6)

C) Motor Accident Claims - Compensation - Personal Expenses - Deduction - The deceased was married and had three dependents. The court deducted 1/3rd towards personal expenses as per standard principles. (Para 6)

D) Motor Accident Claims - Compensation - Future Prospects - Not Applicable - Since the deceased was retired and not in employment, no addition for future prospects was made. (Para 6)

E) Motor Accident Claims - Compensation - Interest Rate - The court maintained the interest rate of 9% per annum from the date of filing of the claim petition till realization, as awarded by the Tribunal. (Para 7)

Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal was just and proper, particularly regarding the computation of loss of dependency based on pension income and the applicable multiplier.

Final Decision

The appeal is partly allowed. The impugned judgment and award is modified. The appellants are entitled to total compensation of Rs.16,54,000/- with interest at 9% per annum from the date of filing of the claim petition till realization. The respondent No.3 - National Insurance Company Limited is directed to deposit the enhanced amount within eight weeks.

Law Points

Pension income is considered as income for computing loss of dependency under Motor Vehicles Act
1988
Deduction of personal expenses for a married deceased is 1/3rd
Multiplier for age 59 is 9
Future prospects not applicable for retired person
Interest rate of 9% per annum is reasonable

Case Details

2026:GUJHC:6859

R/First Appeal No. 3881 of 2025

2026-01-30

Mool Chand Tyagi

2026:GUJHC:6859

Mr. Makbul I Mansuri for the Appellants, Ms. Kirti S Pathak for Defendant No.6, Ms. Krupali N Bhatt for Defendant No.3

Rahematben Kadarbhai Mansuri (died on 29/12/2023) & Ors.

Ashwinsinh Jawansinh Chauhan & Ors.

Nature of Litigation

First Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition under Section 166 of Motor Vehicles Act, 1988.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

The appellants were dissatisfied with the quantum of compensation awarded by the Tribunal.

Previous Decisions

The Motor Accident Claims Tribunal (Aux) partly allowed the claim petition and awarded Rs.8,03,867/- with 9% interest per annum from the date of filing till realization.

Issues

Whether the Tribunal erred in not considering the pension income of the deceased for computing loss of dependency? Whether the compensation awarded is just and proper?

Submissions/Arguments

Appellants argued that the Tribunal failed to consider the pension income of Rs.22,000/- per month, which should be treated as income for loss of dependency. Respondents argued that the award was just and proper.

Ratio Decidendi

Pension income is a regular income and must be considered for computing loss of dependency in motor accident claims. For a deceased aged 59 years, multiplier of 9 is applicable. Deduction of 1/3rd for personal expenses is appropriate for a married deceased with dependents. No future prospects are added for a retired person.

Judgment Excerpts

The deceased was a retired government employee and was getting pension of Rs.22,000/- per month. The Tribunal has not considered the pension income of the deceased while computing the loss of dependency. The pension is a regular income and the same is required to be considered for computing the loss of dependency.

Procedural History

The original claim petition was filed in 2014 before the Motor Accident Claims Tribunal (Aux). The Tribunal passed an award on 31.07.2021 partly allowing the claim. The appellants filed the present First Appeal in 2025 challenging the quantum. The High Court heard the appeal and delivered judgment on 30.01.2026.