Authority: High Court of Uttarakhand at Nainital

Order Date: 29.09.2026

Case Overview

  • Appellants: Smt. Pushpa Farasi and other family members of the deceased Prakshep Farasi.
  • Respondents: New India Insurance Company Ltd (insurer) and the owner/driver of the offending vehicle.
  • Accident occurred on 23.11.2008 at Mussoorie Ring Road; the deceased was hit by an Ambassador car (Reg. No. UA07‑B‑0272) and died on 13.12.2008.
  • The Motor Accident Claims Tribunal, Dehradun (MACT) awarded Rs 4,52,000 compensation on 11.04.2011, assigning liability jointly to the insurer and vehicle owner.
  • MACT based compensation on a notional monthly income of Rs 3,000, multiplier 16, 1/3 deduction for personal expenses, Rs 57,459 medical, Rs 10,000 funeral and loss of estate.
  • Appellants contended the income should be Rs 7,000, deduction should be 1/4, future prospects 40% of income, and interest payable from filing date.
  • The High Court examined precedents (Sarla Verma, National Insurance Co. v. Pranay Sethi, New India Assurance v. Somwati, etc.) regarding income assessment, deduction percentages, future prospects, and consortium.

Final Outcome

  • The Court upheld the notional monthly income of Rs 3,000 and multiplier 16.
  • Modified deduction for personal and living expenses from one‑third to one‑fourth.
  • Added 40% of the annual income as future prospects (Rs 14,400).
  • Awarded loss of consortium Rs 1,60,000 (Rs 40,000 per each of four dependants).
  • Awarded loss of estate Rs 15,000 and funeral expenses Rs 15,000.
  • Total enhanced compensation fixed at Rs 7,94,800, detailed as:

1. Monthly income Rs 3,000 ×12 = Rs 36,000 per annum

2. Future prospects 40% = Rs 14,400 (total Rs 50,400)

3. Multiplier 16 → Rs 8,06,400

4. Deduction one‑fourth (Rs 2,01,600) → Net Rs 6,04,800

5. Loss of consortium Rs 1,60,000

6. Loss of estate Rs 15,000

7. Funeral expenses Rs 15,000

8. Grand total Rs 7,94,800

  • Interest at 7% per annum to accrue from the date of filing of the claim petition until full realisation.
  • Payment to be made by New India Insurance Company Ltd within two months of this order; 50% of the amount to appellant No.1 (Pushpa Farasi) and the remaining equally among the other three claimants.
  • Any amount already paid by the insurer, if any, will be adjusted against the final liability.

Topics: Compensation, Motor Accident