The Gauhati High Court has enhanced compensation payable to the family of a man who died in a road accident, raising the award from Rs. 5.89 lakh to Rs. 8.81 lakh. The Court held that the compensation had to be recalculated by applying the principles laid down by the Supreme Court in National Insurance Company Ltd. v. Pranay Sethi.
Justice Kaushik Goswami delivered the judgment on August 18, 2026, in MACAPP No. 246 of 2016. The Court modified the earlier award passed by the Motor Accident Claims Tribunal, Kamrup (M), Guwahati.
Background of the Case
The case arose from a claim filed by the widow and two sons of late Bani Deka, who died in a road traffic accident. The Tribunal had assessed the family's compensation at Rs. 5,89,000, including Rs. 5.04 lakh for loss of dependency, Rs. 50,000 for loss of consortium, Rs. 25,000 for funeral expenses and Rs. 10,000 for loss of estate.
The family challenged the award, arguing that the Tribunal had not added any amount for the deceased's future prospects and had not properly calculated consortium. They also submitted that the deceased's monthly income should have been assessed at Rs. 5,000 instead of Rs. 4,500.
Court's Observation on Future Prospects
The Court noted that the deceased was 44 years old and was working as a Power Tiller Operator. Evidence on record indicated his monthly income as Rs. 5,000.
Referring to Pranay Sethi, the Court held that a self-employed person aged between 40 and 50 years is entitled to an addition of 25% towards future prospects.
“The omission, therefore, warrants correction in terms of the law laid down in Pranay Sethi (supra).”
After adding 25%, the monthly income was calculated at Rs. 6,250, resulting in an annual income of Rs. 75,000. After deducting one-third towards personal expenses and applying a multiplier of 14, the loss of dependency came to Rs. 7 lakh.
Consortium for Wife and Two Sons
The Court also found that the Tribunal had awarded consortium only to the widow and had not granted parental consortium to the deceased's two sons.
Relying on the Supreme Court's decision in Magma General Insurance Co. Ltd. v. Nanu Ram, the Court explained that consortium includes spousal and parental consortium. It held that children who lose a parent in a motor accident can receive compensation under parental consortium.
The Court accordingly awarded Rs. 48,400 each to the widow and the two sons towards loss of consortium.
Final Decision
The Gauhati High Court recalculated the compensation as follows: Rs. 7 lakh for loss of dependency, Rs. 48,400 for spousal consortium, Rs. 96,800 for parental consortium, Rs. 18,150 towards funeral expenses and Rs. 18,150 towards loss of estate.
The total compensation was fixed at Rs. 8,81,500, with interest at the rate and from the date awarded by the Tribunal.
The Court modified the 2016 award accordingly and directed the insurance company to deposit and pay the enhanced amount to the claimants within six weeks.
Case Details
Case Title: Smt. Putul Deka & Ors. v. Sri Kamal Rajbongshi & Anr.
Case Number: MACAPP No. 246 of 2016
Judge: Justice Kaushik Goswami
Decision Date: 18 August 2026
